Visual Impact of Bankruptcy in Sin City
Bankruptcies even impact casinos in Sin City. When casinos file bankruptcy, it impacts the unemployment rate, hotel occupancy and average room rate. Businesses can file either Chapter 11 or Chapter 7. Check the impact of bankruptcies to casinos in this informative infographic.
Couple’s Chapter 13 Bankruptcy Denied
A Virginia bankruptcy judge has rejected former Virginia House of Delegates member, Phil Hamilton’s, plan to pay back some of his and his wife’s creditors in their Chapter 13 bankruptcy case.
Hamilton and his wife, Kimberly, filed for bankruptcy in February, owing creditors $594,237 with assets of $520,357. Under Chapter 13 bankruptcy, debtors get to keep most of their property, including real estate.
The Hamilton’s original plan was to repay some of the money they owed to over 20 creditors, including banks and credit card companies, during a five-year period. However, the bankruptcy trustee handling the case filed an objection to the couple’s repayment plan, saying it “is underfunded and will not pay out as proposed,” reports Peter Frost for www.dailypress.com. Now that the pair has missed the deadline for filing a revised repayment plan, they will lose the protection that bankruptcy provides; creditors can begin trying to get what they are owed through foreclosure and repossession.
The Hamiltons had planned to continue making mortgage payments on their home, their largest debt, as well as to the Internal Revenue Service and the state of Virginia for unpaid taxes. Uns
Canadian Finance Minister Reproves IRS
Canadian Finance Minister Jim Flaherty issued a strong reproof of the IRS in his response to the Wall Street Journal, New York Times and Washington Post, blasting a new IRS tax crackdown that could ensnare tens of thousands of innocent Americans living in Canada. Flaherty’s irate statement called for the IRS to stop badgering “innocent and law-abiding people” who live in Canada and do not owe the US any taxes. According to him, the US requirement for taxes to be paid by those holding dual US and Canadian citizenship is spreading “unnecessary stress and fear.”
The US has a worldwide taxation policy that requires US citizens to declare all their income for taxation regardless of where they live or where their income is drawn from. The Toronto Globe and Mail reports that there are up to one million US citizens living in Canada, and the majority of them do not know of this policy. The conse
Biggest losers of debt: Michigan couple honored for paying $92,000 credit card debt
The U.S. government can learn a lot about shedding debt from Jerry and Sue Bailey.
The Jackson, Mich., couple paid off $92,000 in credit card debt in 5-1/2 years. “I still can’t believe it when I hear the amount. I don’t wish this on anybody,” Sue Bailey says.
The couple’s massive debt reduction earned them the Clients of the Year award from the National Foundation for Credit Counseling, a nonprofit association of credit counseling agencies that help consumers manage their finances and get out of debt. The winners were announced this week at the group’s annual meeting in San Francisco.
17 credit cards
How did the Baileys end up in such a predicament? From 1992 to 2005, they ran up bills on 17 different credit cards. During that time, they paid for two weddings for their daughters (at a cost of $5,000 each), replaced the transmission in their car when it blew out, made numerous repairs on their home and replaced the roof when it started to leak.
Bad Credit Score – What Happens When You Have A Bad Credit Score?
Maxing out your credit cards and ignoring your bills can give you a bad credit score in the long run. Payments through credit cards and debts that have been unpaid for a long time can have the most detrimental effects on your credit score among other consequential factors.
While the ill effects of a bad credit score might not be evident to you now, it will occur to you that most financial institutions and organizations consider your credit score before interacting with you. Listed below are some of the consequences of a bad credit score.
- Higher Rates Of Interest – Most creditors and lenders will see your application as a risk in comparison to other applicants who have better credit as compared to you. In order to compensate for this risk, they will make you pay a rate of interest much higher than the others. I
The Federal Debt: When Compound Interest Is Crushing
The showdown over increasing the federal debt limit got me thinking about the power of compound interest. It’s always been one of the most powerful forces in the financial universe. And in the case of the debt ceiling, it appears that compound interest has the potential to become a crushing enemy.
Some people fear that the United States will lose its AAA credit-rating or even default temporarily, potentially increasing how much it costs the government to borrow money. According to the Congressional Budget Office, a 4-percentage-point across-the-board increase in interest rates would raise federal interest payments next year by about $100 billion; if those higher rates persisted, net interest costs in 2015 would be nearly double the roughly $460 billion that the C.B.O. currently projects for that year.
Think about that for a minute. If those worst-case-scenario interest rates came to pass and persisted, we’d be approaching a trillion dollars in interest payments per year. Tha