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What happens after a denied home loan modification?

Getting turned down for a home loan modification feels frustrating, but it’s not the end of the road. You still have options to explore and decisions to make. Understanding what comes next can help you stay in control of your situation. Understand the reason for denial Start by reviewing the home loan modification denial letter from your lender. It explains why the application didn’t go through. Common reasons include missing documents, insufficient income, or too much debt. Knowing the exact reason helps you figure out

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How credit card debt affects your bankruptcy means test

Filing for bankruptcy in Maryland requires passing a means test. This test helps the court decide if you qualify for Chapter 7 bankruptcy. It compares your income to the median income in Maryland and examines at your regular expenses.  Credit card debt plays a key role in this calculation. Understanding how your credit card debt may affect your eligibility will help you decide if bankruptcy is right for you. What is the bankruptcy means test? The means test has two main parts. The first part

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Can you stop foreclosure with a deed in lieu?

Confronting foreclosure can be overwhelming, but there are strategies available to prevent it. One such strategy is a deed in lieu of foreclosure, where you voluntarily transfer ownership of your property to the lender in exchange for the cancellation of your mortgage. In this post, we’ll explain how this process works and whether it might be the right solution for you. What is a deed in lieu of foreclosure? A deed in lieu of foreclosure is a formal agreement in which the homeowner relinquishes the

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Staying on track with your Chapter 13 repayment plan

Filing for Chapter 13 bankruptcy offers a structured path to financial recovery, and successfully completing the repayment plan is crucial. Missing payments or failing to adhere to your plan can lead to serious consequences, including dismissal of the bankruptcy case, loss of asset protection and renewed creditor collection efforts. To avoid setbacks, it is essential to stay disciplined and proactive throughout the Chapter 13 bankruptcy repayment period. Here are some tips for success. Understand your repayment plan Before making payments, take time to thoroughly review

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What’s the difference between loan modification and refinancing?

When facing financial difficulties, homeowners often consider two main options: loan modification and refinancing. While they both aim to reduce monthly payments, they function differently and have distinct impacts on your mortgage. Understanding the difference can help you make an informed decision based on your circumstances. Loan modification explained A loan modification is a change to the original terms of your existing mortgage. It involves negotiating directly with your lender to adjust your loan’s interest rate, payment structure, or term. The goal is to make

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Can you keep your house in Chapter 7?

Filing for Chapter 7 bankruptcy can feel overwhelming, especially if you’re concerned about losing your home. In Maryland, whether you can keep your house depends on several factors. Maryland’s homestead exemption Maryland offers a homestead exemption, which protects the equity you can keep in your primary residence. As of now, Maryland allows an individual filer to exempt up to $25,150 in home equity. If you’re married and both of you file jointly, this exemption increases. If the equity in your home falls below this amount,

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How does wage garnishment work for credit card debt in Maryland?

Falling behind on credit card payments in Maryland can lead to serious financial consequences, including wage garnishment. Creditors have the legal ability to recover unpaid balances through court-ordered deductions from your paycheck. What wage garnishment means in Maryland Wage garnishment refers to a legal process where a creditor collects a portion of your wages to satisfy a debt. However, creditors cannot initiate this action without first obtaining a court judgment against you. After a successful lawsuit, the creditor may request a garnishment order. State law

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How does Chapter 13 bankruptcy affect your ability to rent a home?

Filing for Chapter 13 bankruptcy helps you reorganize debt, but it can impact your ability to rent a home. Landlords often check credit reports and may hesitate to rent to someone with a bankruptcy filing. However, you can still find housing with the right approach. How landlords view bankruptcy filings Most landlords review credit history before approving rental applications. A Chapter 13 bankruptcy may raise concerns about your financial stability. Some landlords may see it as a sign of financial struggle, while others may consider

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What are the steps in a Chapter 11 filing?

Filing for Chapter 11 bankruptcy can help businesses reorganize their debts while continuing operations. This process involves several legal steps and requires careful planning to meet state and federal requirements.  Businesses must follow both federal bankruptcy laws and any applicable state regulations. Preparing for the filing Before filing, a business must assess its financial situation. This includes reviewing outstanding debts, assets, and revenue streams. A business should also determine whether Chapter 11 is the best option compared to alternatives like Chapter 7 liquidation. Once the

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