For most Florida spouses who are preparing to go through a divorce, the division of marital property will be a top priority. When preparing to address the issue, however, spouses should be aware that the division of debt is also part of the property division process. Couples will have to deal with their credit card debt as they prepare to go their separate ways, and for those who hold a high level of debt, the outcome could bring additional financial strain.
For many consumers in the United States, getting debt-related bills in the mail each month may cause immediate stress because they simply cannot afford to keep up with the payments. In some cases, people quickly get into debt due to overspending with their credit cards, while others are struck with life emergencies -- such as a medical crisis or job loss -- and are unable to manage their debt during such trying times. With consumer debt on the rise, more and more individuals in Florida may understandably be desperate for rapid debt relief.
Getting rid of debt is usually a process that takes some time. In most cases, you have to work to get your balances down. If you are able to file bankruptcy, you could still have some bills that are still valid, depending on the type of bankruptcy that you file. Orlando residents might be interested to learn that the hard work of paying down debt is working. South Florida leads the country in consumer debt reduction.
On Nov. 4, Florida-based Sun Capital Partners filed in the U.S. Bankruptcy court for Chapter 11 bankruptcy protection. Sun Capital Partners is a private equity firm based in Fort Walton that purchased Edwin Watts Golf Shops in 2007. It is hoped that the shops will continue to operate until the Chapter 11 proceeding is concluded. To that end, the company secured a loan from PNC Bank in the amount of $38 million.
After leading the $48 billion buyout of Energy Future Holdings Corp. in 2007, Goldman Sachs and KKR are now in the position of fighting over leftover funds of the corporation. The initial investments made by the companies, along with other investment firms like TPG Capital, were based on the premise that gas prices would continue to increase in the future.
Florida residents who are being harassed by creditors may be gratified to hear that a debt collection agency just got hit with a million dollar fine for a variety of illegal collection practices. The company in question, named the misleading National Attorney Collection Services, Inc., was going out of their way to give people the impression they were a law firm. In both text messages and phone calls, representatives of the collection agency represented themselves as either attorneys or legal assistants.
It is easy to get swept up in the use of credit cards. Perhaps that explains the nation's $800 billion in credit card debt. As more people recognize the risks of irresponsible credit card use, many Floridians and people nationwide are choosing to live without them.
Depending on the card holder agreement, Florida residents may find their credit limits drastically reduced or their line of credit cancelled after a default on a different credit card account. No matter what the circumstances of the late payments, the credit card company may have the right to cancel a credit account -- even if that account is in good standing -- if the customer fails to pay on other accounts.
Florida residents might be interested in learning about a new bill that was proposed to help protect the credit of consumers who have medical debt. Medical debt can do serious harm to a person's credit report. In addition, one in 10 insurance claims are incorrectly processed. This means that debt collectors are often working with account information that is potentially inaccurate or out of date.