Eugene Bankruptcy Law Blog

Understanding the potential consequences of dealing with debt

On behalf of The Law Office of Kim Covington posted in Credit Card Debt on Saturday, April 21, 2018.

Substantial financial concerns can leave individuals in Oregon and elsewhere uncertain about the future. Those that are struggling with high amounts of debt may also feel crushed under the weight of the constant collection calls and letters. In addition to the stress debt can bring, a person may also have concerns about what will happen if he or she is consistently unable to keep up with monetary obligations.

Missing a due date can bring about costly late fees and, in certain lines of credit, could bring about an increase in interest rates. However, for those who are constantly unable to make their minimum payments, their accounts could wind up going to a collection agency. Although this may only lead to constant contact attempts, once a certain period passes without payment, creditors may choose to pursue legal action.

Bankruptcy could be the most viable option for relief

On behalf of The Law Office of Kim Covington posted in chapter 7 bankruptcy on Thursday, April 19, 2018.

With prevalent financial concerns such as credit card and medical bills, many individuals in Oregon and elsewhere have found themselves facing significant financial issues. Living under the weight of debt can be harrowing, and without experience in the area, many may be uncertain how to work their way back toward financial stability. Although there are numerous outlets for relief, some consumers may find bankruptcy to be the most viable option available.

When it comes to bankruptcy, most individuals may give little thought to the process until they begin to struggle under the weight of debt. When it becomes an option, some may still feel somewhat intimidated by the prospect of filing, whether due to the complex nature of the process or to the impact it could have on their future. However, while it can be difficult to consider, the relief one might obtain through bankruptcy could be substantial.

Recognize that you have a credit card addiction

On behalf of The Law Office of Kim Covington posted in blog on Tuesday, April 17, 2018.

Addictions can run the gamut from watching too much television, eating an excessive amount of junk food or being attracted to dangerous activities. You may not have considered credit card addiction in that latter category, but it really is. Credit card addition can be dangerous to your finances, your lifestyle, your relationships and your mental and physical well-being.

If you’re use of plastic seems out of control, wise up, recognize it, and then tackle the problem whole-heartedly with a little resourcefulness or a bit of guidance. You can do it. Recognizing that you have a problem is your first step toward recovery.

Rebuilding credit after filing for bankruptcy in Oregon

On behalf of The Law Office of Kim Covington posted in chapter 7 bankruptcy on Thursday, April 5, 2018.

Many individuals in Oregon and elsewhere may have experienced financial struggles that prompted a need to pursue relief. However, with little to no experience in the area, some may be uncertain of the options available to them and how each option might affect their financial futures. Those who wish to pursue relief through bankruptcy could take comfort in knowing the steps they can take to begin rebuilding their credit after the process is finalized.

Perhaps the first step to knowing how to recover from bankruptcy is to gain an understanding of the process. Knowing what types of debt are eligible for discharge and how the process might affect one's assets can help a person prepare to make an informed decision. However, since this information may not be common knowledge, a person might find it beneficial to seek guidance before deciding on a path.

Taking steps to cut down on or eliminate credit card debt

On behalf of The Law Office of Kim Covington posted in Credit Card Debt on Thursday, March 29, 2018.

Many individuals in Oregon and across the nation may use credit cards for a variety of reasons each day. While at the time, the rewards involved in using a credit card may seem enticing, keeping up with monthly payments could become difficult as balances continue to rise. For individuals who struggle due to significant amounts of credit card debt, knowing the steps to take to help reduce or eliminate debts could be essential to protecting their finances.

There may be numerous ways to approach credit card debt, one of which involves a balance transfer. Transferring a balance to a new account with a period free of interest could help ensure that payments go directly toward the principal. One could also consider setting up automatic payments to prevent late fees, as one late payment could cause interest rates on accounts to increase significantly.

One trip to the hospital could result in substantial medical debt

On behalf of The Law Office of Kim Covington posted in medical debt on Thursday, March 22, 2018.

While some individuals in Oregon may put off seeking medical attention due to the high costs of treatment, in some cases, a trip to the hospital may be unavoidable. In addition, avoiding care due to the possible financial ramifications may only cause a condition to deteriorate, and a relatively minor condition may end up being much worse in the end, costing far more in both time and money to treat and recover from. Regardless of how it happens, medical debt is a serious issue for many individuals, and the resulting monetary concerns can be significant.

Without health insurance, the idea of taking a trip to the hospital can be an intimidating prospect. However, with high deductibles and copayments, even those who carry insurance may wish to avoid seeking care at times. Unfortunately, one may not always have that as an option, and when medical bills begin to arrive, a person may be left scrambling to figure out how he or she will be able to afford keeping up with monetary obligations.

Credit card debt remains an issue as balances continue to rise

On behalf of The Law Office of Kim Covington posted in Credit Card Debt on Thursday, March 15, 2018.

Debt can come in a variety of forms and fashions, each of which could have a significant impact on a person's life. With credit card purchases over the past year reaching levels that go beyond those present prior to the Great Recession, many individuals in Oregon may be experiencing trouble keeping up with monthly payments. Those who struggle under the weight of credit card debt may wish to pursue relief, but with little experience in the area, they might be unaware of the options that are available.

According to recent reports, the amount of credit card debt racked up over the previous year came in at just over $92 billion, bringing the total owed to more than $1 trillion. These reports suggest that almost $70 billion in credit card purchases took place in the fourth quarter alone. This staggering amount could be the result of a substantial increase in holiday spending, which many individuals may have chosen to carry out with the use of a credit card.

How debt can affect young families

On behalf of The Law Office of Kim Covington posted in blog on Monday, March 12, 2018.

Raising a family can be difficult, especially in the early years. Your career is not yet mature, your children are not old enough to care for themselves and your bills pile up quickly. Debt can put major strain on a young family’s finances. But it can also affect your family in ways that you may not have considered.

The effects of debt

Bankruptcy: Using a tax refund as a means to pursue debt relief

On behalf of The Law Office of Kim Covington posted in chapter 7 bankruptcy on Thursday, March 8, 2018.

For many individuals in Oregon and elsewhere, the decision about what to do with a tax refund can be a challenging task. Some may believe it is best to place their refund in savings in case of an emergency, while others might wish to make payments on debts and free up income. However, for those who are experiencing significant financial issues, a refund could be a means with which to pursue relief from debts through bankruptcy.

According to reports, the average tax return in the previous year was just under $2,900. Financial advisers recommend that individuals either place their refunds in savings or use them to make payments on debts. However, results from a recent survey suggest that many individuals plan to use their refund to assist with everyday expenses or to pay to see a medical professional for treatment they would otherwise avoid.

Credit card debt could pose a threat to a person's well-being

On behalf of The Law Office of Kim Covington posted in Credit Card Debt on Wednesday, February 28, 2018.

Whether to purchase a big ticket item, or simply for assistance with day-to-day expenses, many individuals in Oregon and elsewhere have turned to credit accounts for financial aid. While credit cards can provide immediate relief, such a decision could come with a price, and high interest rates on balances could lead a person toward financial hardships. However, monetary issues may not be the only concern with credit card debt, as studies suggest that similar situations can have a negative impact on a person's health.

According to reports, credit card debt reached record highs in the previous year, with the total of such debts in the nation exceeding $1 trillion. For many, this may come as no surprise, as nearly half of individuals who sign up for such accounts say they carry a constant balance. Being unable to pay off a credit card each month could have devastating consequences, as high interest rates may cause one's balance to continually increase.

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