Facebook Twitter LinkedIn
Michael D. Hart, P.C.
Helping You Move Forward Free Of Financial Problems
Areas & Topics

Posts tagged "Chapter 13 Bankruptcy"

Credit card balances in Virginia surpass $31 billion

A recent survey reveals that revolving debt in Virginia grew by more than $1 billion during the second quarter of 2019 and has now reached a worrying $31 billion. The average Virginia household owes $10,480 to credit card companies, which is a figure that is only surpassed in Alaska and Hawaii. The personal finance website WalletHub based the survey on data provided by TransUnion and the U.S. Federal Reserve.

Illness and injury often contribute to bankruptcy

Many Virginia residents struggle to pay their bills each month. While this could be the result of financial irresponsibility, debt is often caused by unavoidable circumstances. For example, debt could be tied to an illness or injury within a household.

More elders forced into bankruptcy

Elderly people in Virginia and nationwide are finding it more difficult to make ends meet. As a result, an increasing number of people are filing for bankruptcy later in life. There are a number of factors that are contributing to the problem, including major financial and social shifts in society. In 1991, only 2% of the people who filed for bankruptcy were elderly; that number has now reached 12%. People over 65 are often seeking relief from a range of debts. However, there are still obligations that cannot be discharged in personal bankruptcy, including student loans, tax obligations or overdue child support.

Taking on new debt during a Chapter 13 bankruptcy

Virginia consumers who are struggling with insurmountable debt may file for personal bankruptcy in order to find relief. Chapter 13 bankruptcy is available for people with higher incomes than the threshold required for a Chapter 7 liquidation bankruptcy. It has some advantages, such as lasting a shorter time on a credit report as well as allowing people to keep property while a payment plan is set up for their debts. However, an open Chapter 13 bankruptcy can persist for several years while the payment plan is in place. During this period, people can still take out new loans and get new credit.

Indirect methods of accruing credit card debt

Credit cards can be effective tools when Virginia residents are planning a vacation. This is because many cards offer cash back, airline miles or other perks that can be used to pay for a hotel or a rental car. However, using a credit card can also make a vacation more expensive than it needs to be. This can be especially true for those who want to take a trip now and pay for it later.

Credit card debt may be harder for women to repay

Credit card debt levels continue to rise in Virginia and throughout the country. The average credit card debt balance is $5,700, and women tend to have more difficulty paying down their balances in full. There are many possible reasons to explain why this may be the case. First, some believe that women don't have the same level of financial literacy as men do. However, this is not necessarily their fault.

FTC reveals entire industry behind robocalls

A recent crackdown by the Federal Trade Commission revealed that robocall operations out of Virginia and other states were tied to large illegal organizations. This most recent action by the FTC targeted groups that tried to sell fake products, multilevel marketing schemes or real products marketed using illegal tactics. The crackdown provides the clearest picture yet of the people and structures behind these illegal activities.

The pros and cons of having multiple credit cards

It isn't uncommon for Virginia residents and others to have more than one credit card. In fact, there can be a variety of benefits to having multiple cards. Those benefits include having more money to handle an emergency situation and a greater chance of having a lower credit card utilization rate. However, it is important to know how to manage credit card debt as it can be easy to use the entire available balance or forget to make a payment.

Chapter 13 bankruptcy can help with the worsening debt crisis

For Virginians and people across the nation, debt is reaching critical levels. Student loans are perceived to be the culprit for the debt problems many Americans face, but there are other reasons. For example, people rely on credit cards to a troubling degree. The combination is making it nearly impossible to get ahead and forcing debtors to consider solutions like Chapter 13 bankruptcy.


Michael D. Hart, P.C.
19 Church Street Southwest
Roanoke, VA 24011

Phone: 540-627-6520
Fax: 540-342-7655
Map & Directions