Tag Archives: DebtFree

6 Smart Ways to Spend Your Tax Refund in 2020

Tax season is nothing to be afraid of for some people. Although some of us may owe the IRS money this year, others may receive funds from a tax refund. Depending on the amount you receive, there could be multiple ways to spend your tax refund to bolster your finances. Tax refunds of over $1,000 are especially helpful, as you could use this extra money for multiple purposes. Consider the following actions if you receive a tax refund this year. Set Up a Savings Account Save for Health Expenses Save for College Pay Off Debts Save for Retirement Invest in Your Career 1. Set Up a Savings Account Life may decide to give you lemons at any moment. Job loss, illness, a death in the family, an injury, or a demotion are all reasons why you could suddenly need access to money. Unfortunately, 59 percent of Americans cannot cover a…
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Can You Convert a Chapter 13 Bankruptcy to a Chapter 7?

Chapter 13 bankruptcy does have its benefits. People filing for Chapter 13 have the chance to keep some of their most cherished assets. However, life circumstances can change and Chapter 13 may not be the best option. Some filers may want to convert a Chapter 13 bankruptcy to a Chapter 7 bankruptcy because: Financial circumstances of filers change. They may be unable to afford their Chapter 13 payment plans due to these changes. Losing a job and not having access to other types of income is one example. Filers decide they do not want to keep property, such as a house or car. They may decide they cannot afford the payments, or there may be other reasons. Chapter 7 would allow the filer to discharge secured debts, such as a home or vehicle. There are also cases where bankruptcy conversion is not voluntary. Filers may be forced by the bankruptcy…
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Are Credit Counseling Sessions Required for Bankruptcy?

Most people filing for Chapter 7 or Chapter 13 bankruptcy must take two brief credit counseling sessions. A first session is required before filing, and it will help you determine if bankruptcy is your best option. The second session is required after you file, but before debts are discharged. It will include information on responsible use of credit and budgeting. 4 Reasons You Should Not Fear Credit Counseling Sessions Credit counseling may seem scary and intrusive, but it is easy and painless. It is not time-consuming: These sessions may not require you to leave your apartment or house, and could take up to a half-hour. Most places allow you to take credit counseling over the phone or online. This process does not involve taking time off from work, driving somewhere far away, and sitting in a class for several hours. It is cheap or free: Depending on your financial situation,…
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