Sader Law Firm Blog - Kansas City Bankruptcy Attorney Blog

Did you really need that extra credit card anyway?

Posted on August 15, 2023 by Sader Law Firm

Americans looking to borrow in 2023 could face more difficulty than in previous years, Yahoo Finance reports. Approval for almost all forms of borrowing, from car payment loans to credit cards, can be a battle in the current economic environment. The New York Federal Reserve recently published a study that shows that rejection for credit card applications has risen to 21.8% in June 2023. This is the highest rejection rate in five years, and this has been shown to have an effect on every demographic, but especially people with credit scores below 680. In addition to high rejection rates, the Federal Reserve System has been hiking interest rates to hopefully combat the ongoing inflation in the U.S. These high interest rates are intended to deter people from borrowing money through loans, credit cards and more. This year has undoubtedly been tough for Americans. High interest rates paired with stricter acceptance…
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Posted in Bankruptcy, Consumer Credit | Comments Off on Did you really need that extra credit card anyway?

With student loan cancellation hitting major roadblock, bankruptcy still provides option for relief of other existing consumer debt

Posted on August 9, 2023 by Sader Law Firm

President Biden’s student loan forgiveness plan aimed to help alleviate around $400 billion of student debt, but last June, the Supreme Court struck down the measure with a 6-3 vote. Now, more than 40 million Americans will likely be left to resume loan payments at some point this fall. Deferments and forbearances provided what now looks like temporary relief, and individuals hoping to have up to $20,000 in student loan debt forgiven may have been busy accumulating debt elsewhere. According to the American Bankruptcy Institute, credit card debt is set to surpass $1 trillion in 2023. The average American household owes $10,000 in credit card debt and 46% of credit card holders carry debt every month. Coupled with rent or mortgage payments and the pending resumption of student loan payments, many individuals will be facing budget concerns. While most student loan debt proves difficult to discharge in a normal bankruptcy…
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Posted in Bankruptcy, Student Loans, Uncategorized | Comments Off on With student loan cancellation hitting major roadblock, bankruptcy still provides option for relief of other existing consumer debt

Tax return smaller than expected or not coming at all? Bankruptcy could be a viable option.

Posted on June 13, 2023 by Sader Law Firm

Many Americans recently filed a tax return only to discover their refund was not what they had expected — or worse. Others might have prepared the documents only to seek an extension due to an unplanned need to pay. Now, the realization sets in that financial hardships remain or might have worsened. Right now, foreclosures are increasing following all of the relief and moratoriums, while adjustable-rate mortgages are going up. The restart of student loan debt repayment continues to loom. Individuals seeing renewed or increased difficulty meeting debt obligations need to know bankruptcy can help provide a path forward. Attorneys at Sader Law Firm regularly help keep individuals and families in a residence, stop calls from creditors and develop a plan to meet the specific needs of their situation. However, those considering bankruptcy should keep a few things in mind: While most types of personal obligations can be discharged through…
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Posted in Bankruptcy, Collections, Consumer Credit, Personal Taxes, Student Loans | Comments Off on Tax return smaller than expected or not coming at all? Bankruptcy could be a viable option.

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