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Bankruptcy Filings Down; Credit Card Deficiencies Down

There is some good news for consumers after the first quarter bankruptcy numbers are in:  the number of personal bankruptcy filings was down.  Again.  This was a continuation of the 2011 and 2012 trend; and a huge turnaround from the prior years when the number of personal bankruptcies, in Massachusetts and throughout the country, skyrocketed.  The first quarter of 2013 filings were down 13% from last year’s first quarter.  Furthermore, credit card delinquencies and chargoffs are below last years, indicating that consumers are in a much better position to pay their bills.  For example, delinquencies are down 26%, which seems significant.
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Keeping Your Home In Personal Bankruptcy

Now that the housing market is starting to recover, more and more folks have some equity in their homes.  Nevertheless they still may need to file for bankruptcy protection because they can’t pay all their bills.  Many folks have managed to pay their mortgages, especially if they were lucky enough to refinance with lower interest rates, yet creditors are hounding folks that owe monies on credit cards, medical bills, personal loans, and utility bills. Read more

Are Small Business Administration Loans Dischargeable in Massachusetts Bankruptcy?

As our readers know, the 2005 amendments to the Bankruptcy law made it more difficult to file for personal bankruptcy.   A “means test” was added to make it more difficult for moderate-income folks to file.   Young people with federally subsidized student loans were not given any relief.   Federal taxes are dischargeable in many instances.  There are many instances in which SBA loans can be discharged too.  So what is the logic?
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