Tag Archives: ConsumerDebt

What Is the Difference Between Secured and Unsecured Debt?

After filing for bankruptcy, secured and unsecured debt will be handled differently. Depending on the personal financial situation of debtors, there are various options to discharge or reduce these debts in Chapter 7 or 13 bankruptcy. Options for Secured Debts During Bankruptcy Secured debts include liens on assets such as homes, vehicles and department store credit cards. These debts, which are given higher priority during bankruptcy, use the physical assets as collateral to protect the lender. Depending on whether debtors file Chapter 13 or Chapter 7 bankruptcy, the outcome of secured debts can vary. After filing for Chapter 7 bankruptcy, secured assets can be sold to pay back lenders. Any leftover debts after assets are sold become unsecured debt, which are then eligible for bankruptcy discharge. However, not everyone filing for Chapter 7 bankruptcy will need to have their important assets auctioned off to pay back creditors. There are certain…
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Debt Collection Company Uses Illegal Tactics to Harass Borrowers

Borrowers behind on payments have likely experienced phone calls and threatening letters in the mailbox. However, some debt collection companies go a step further and break laws. For example, a debt collector pretends to deliver pizza to your house. Westlake Financial Services recently got into trouble with the Consumer Financial Protection Bureau (CFPB) for resorting to these unjust tactics. Debt collectors with Westlake Financial Services used a tool called Skip Tracy to manipulate Caller ID information so it appeared calls were originating from pizzerias. Why go through the trouble? Debt collectors were attempting to update information on borrowers. Even worse, Westlake Financial Services owns subprime auto loans, debts that affect poor and vulnerable borrowers. The CFPB recently ordered Westlake Financial Services to pay a civil penalty of $4.25 million in addition to providing affected borrowers with $44.1 million in balance reductions. Lying to borrowers and presenting false information is a…
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Survey Finds Financial Worries Cause Insomnia For 62 Percent Of Americans

In a recent survey conducted by CreditCards.com, it was found that 62 percent of American respondents are being kept awake at night by financial problems. For the last several years, the debt research website has used this survey to link financial security and sleep. The survey shows how varying financial worries are divided among different demographics: Of survey respondents, 40 percent say they are worried about retirement savings. Nearly half of respondents aged 50 to 64 claimed this was their primary financial concern. Educational expenses worry 31 percent of respondents. This worry kept 50 percent of 18 to 29-year-olds from getting a good night’s sleep. An analyst with CreditCards.com claimed worries over educational expenses had increased every year since the website began using the survey. An additional 29 percent of Americans are staying awake at night worrying about medical bills. Unsurprisingly, 60 percent of the survey respondents were worried about…
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