It is natural to think you could lose your home if you decide to file for bankruptcy. Even if you are not in foreclosure for missing payments, there can be still be worry that the bankruptcy process may cost you your home.
According to the Federal Reserve, the total amount of student loan debt now exceeds $1.5 trillion in America. It accounts for 11 percent of collective household debt (this is second behind only mortgage debt). However, student loans are not the biggest creditor for millennials throughout Virginia and the rest of the U.S. Rather, credit card debt exceeds student debt for this group, according to the Northwestern Mutual 2018 Planning and Progress Study. Credit card balances currently makes up a quarter of the total debt burden of older millennials, aged 25 to 34.
Virginia residents who are experiencing financial difficulties may use bankruptcy as a way to get control over their debts. Prior to bankruptcy, courts require the filer to take a credit counseling course. Furthermore, it's necessary to take continuing education courses after filing.
When a Virginia debtor has a credit card balance forgiven, they aren't always totally in the clear. In some cases, only a portion of the balance is forgiven. Furthermore, it is possible that the forgiven debt could be treated as income by the IRS. This would make it necessary to pay taxes on that amount. How flexible a creditor is about repaying a credit card balance depends on who holds the debt.
A study published in Health Affairs analyzed the 2016 credit reports of 4 million people. It found that over half of medical debts that went into collections each year were for less than $600. The study also found that those in their 20s have a greater chance of struggling with medical debt compared to those in their 60s. The average medical debt went down by 40 percent between the ages of 27 and 64.