People facing debt collection are often tempted to dip into retirement funds to pay debts. While this has never been a good idea, using up retirement funds to pay debt is increasingly risky with the recent projection that the Social Security trust fund will be depleted by the year 2034. Beginning in 2034 it’s now expected that Social Security recipients will have their benefits cut by nearly 20%. The outlook for Medicare is equally dismal, with benefits projected to beRead more

Bankruptcy inquiries are surging to their highest level since early 2020, signaling a potential wave of filings in 2025. Record consumer debt and new tariffs could push financially strained households past their breaking point. Trump’s tariffs, especially on Chinese goods and other imports (like steel and aluminum), have raised costs for American businesses that rely on those materials and components. Many companies have passed those costs onto consumers in the form of higher prices, contributing to inflation. These tariffs haveRead more

One of the many harmful actions the Trump Administration has taken is the shuttering of the Consumer Financial Protection Bureau (CFPB). This shortsighted move could have serious consequences for consumers, potentially leading to more individuals needing to file for bankruptcy. Here’s how: Increased Predatory Lending and Deceptive Practices The CFPB plays a key role in regulating payday lenders, mortgage servicers, credit card companies, and other financial institutions. Without the CFPB’s oversight, predatory lenders could engage in deceptive or abusive practices,Read more

Total household debt increased to nearly $18 trillion in the third quarter of 2024. The bulk of that debt is tied to mortgages but credit cards and auto loans total nearly $3 trillion of the total debt. Student loans total another $1.6 trillion. Even more concerning about the household debt picture is that delinquencies on these debts also remain high and are growing. About 3.5% of all debt is delinquent, meaning borrowers will be facing debt collection and foreclosure unlessRead more

On Christmas Eve, December 24th, Pope Francis officially began the Year of Jubilee in 2025. The Year of Jubilee, rooted in ancient Israelite tradition, is described in the Bible (Leviticus 25), as a special year of economic and social reset. The year of Jubilee carried profound implications for forgiveness of debt and the lives of debtors. In the year 2025 Pope Francis called for “a new world where peace and justice reign.” As part of the Catholic church’s Jubilee recognition,Read more

I am sometimes contacted by someone living in a country other than the United States about filing bankruptcy. It’s often someone originally from the United States who is currently living in another country but who has debts originating in the United States or with creditors located in the U.S. Filing for bankruptcy in the United States while living in another country is possible under specific circumstances. The key factor is whether the individual has sufficient ties to the United StatesRead more

People who call me inquiring about filing bankruptcy often believe there’s some rule or generally accepted answer to the question of “Should I file bankruptcy?”. I have to tell them there’s no such rule. There’s nothing but anyone’s own personal philosophy about when it’s best to file. I share my own philosophy that life is far too short to spend more than 2-4 years outside bankruptcy trying to pay off debt. There are more important places to spend our money.Read more