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Bankruptcy

Monday’s need-to-know money news

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Today’s top story: Mortgage Outlook: A pre-election pause for October rates? Also in the news: A new episode of the SmartMoney podcast on the unequal employment recover and the case for used cars, many avoid bankruptcy out of fear, and how to opt out of pre-screened credit offers.

Mortgage Outlook: A Pre-Election Pause for October Rates?
Rates are standing still.

Smart Money Podcast: Unequal Employment Recovery, and the Case for Used Cars
Used cars are a no-brainer if you’re trying to save money.

Many avoid bankruptcy out of fear
People often wait too long to file, draining retirement accounts or other assets that would be protected

How to Opt Out of Pre-Screened Credit Offers
Reducing your junk mail.

Friday’s need-to-know money news

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Today’s top story: Fear of bankruptcy holds too many people back. Also in the news: Saving for a down payment is only the start for homeowners, pressing pause on private student loans, and it’s time to revise your pandemic budget.

Fear of Bankruptcy Holds Too Many People Back
Many people could benefit from bankruptcy relief but don’t file because of fear, myths or misplaced optimism.

For Homeowners, Saving a Down Payment Is Only the Start
The down payment is just one cost to save for.

Should You Press Pause on Private Student Loans?
Forbearance isn’t the only way to get a more manageable private student loan payment.

It’s Time to Revise Your Pandemic Budget
Budgeting is more important than ever.

Fear of bankruptcy holds too many people back

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The mystery isn’t why so many people file for bankruptcy each year. It’s why more people don’t.

Each year, only a fraction of the Americans who could benefit financially from bankruptcy actually seek relief. Economists say some don’t file because collectors aren’t aggressively pursuing them, while others may strategically delay filing because bankruptcy could benefit them more down the road.

Many bankruptcy attorneys have a much simpler explanation: Fear, a lack of information and misplaced optimism keep people from getting a fresh start. In my latest for the Associated press, why bankruptcy may be the best option for those struggling with debt.

Thursday’s need-to-know money news

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Today’s top story: Start thinking bankruptcy now to maximize your options later. Also in the news: Why this is the perfect time to teach teens about credit, how to protect your stimulus relief check from debt collectors, and how to return a deceased relative’s stimulus check.

Start Thinking Bankruptcy Now, to Maximize Your Options Later
Timing is everything during the pandemic.

This is the perfect time to teach teens about credit
5 ways to prepare Gen Z for the real world of debt and finances.

How to protect your stimulus relief check from debt collectors
Turn that check into cash quickly.

How to Return a Deceased Relative’s Stimulus Check
Unfortunately, you can’t keep it.

Start thinking bankruptcy now, not later

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If you’ve lost your job or struggle to pay your debt, you may need to file for bankruptcy. If that’s the case, you should ignore some common financial advice and start thinking defensively.

The coronavirus pandemic that upended the economy is also expected to send unprecedented numbers of people and businesses to bankruptcy court. Millions are out of work, and economic disruptions could continue until a vaccine is widely available, something that may be more than a year away.

“I am gearing up for having a tsunami of new cases,” says Jenny Doling, a bankruptcy attorney in Palm Desert, California, who serves on the American Bankruptcy Institute’s Chapter 13 Advisory Committee. “I think there will be a whole lot more people filing than what anyone’s ever seen before.”

In my latest for the Associated Press, what you need to know now if bankruptcy is in your future.

Unlock the debtor’s prison of student loans

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Earlier this year, a judge denounced the myth that student loans can’t be erased in bankruptcy court as she excused a Navy veteran from having to pay $221,000 in education debt. Bankruptcy judge Cecelia G. Morris’ decision garnered plenty of headlines, along with speculation that the ruling might make such discharges easier.

The battle isn’t over, though. A few days later, Morris’ ruling was appealed by the Education Credit Management Corporation, a nonprofit company that guarantees and services federal student loans for the U.S. Department of Education.

In my latest for the Associated Press, what the American Bankruptcy Institute’s Commission on Consumer Bankruptcy recommends to begin freeing borrowers from their loans.