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What is a debt management plan?

If credit card debt is overwhelming you, there are a plethora of avenues for you to get out of your predicament. One such way is with a debt management plan. While the term “debt management plan” may sound very non-specific, it is a specific debt payoff tool that helps pay off credit card debt. According to NerdWallet, debt management plans are not for everyone, but they do have a very high rate of success. What does a debt management plan do? With a debt management

June 17, 2021 No Comments

What is a secured credit card?

Rebuilding your credit is a key goal in the aftermath of any kind of bankruptcy. Particularly if you struggled with credit card debt prior to bankruptcy, it might surprise you to learn that credit cards can help you rebuild your credit. Secured credit cards are a cornerstone of any solid credit rebuilding plan. According to NerdWallet, secured credit cards act very similarly to unsecured credit cards, other than there is a deposit on a secured credit card. How does it work? For a secured credit

June 8, 2021 No Comments

5 signs it might be time to consider bankruptcy

While living with a certain amount of debt has become something of an expectation for many Americans, if that debt grows out of control an unstable financial future might be right around the corner. With credit cards, medical debt, mortgages, vehicle loans and personal loans, it is not uncommon for individuals to see their debt levels slowly and steadily grow into an overwhelming problem. Fortunately, the Bankruptcy Code exists to give people a way to eliminate debt and make a fresh start toward a more

May 19, 2021 No Comments

Chapter 7 vs Chapter 13 bankruptcy: which one might be best for you?

As we have discussed before in this blog, the main options for personal bankruptcy protection for people in Maryland are called Chapter 7 bankruptcy and Chapter 13 bankruptcy. Both forms of bankruptcy have the same goal of getting you out of debt and giving you and your family a fresh start financially. But they work differently, and choosing which one to pursue is not as simple as flipping a coin. Chapter 7: liquidation bankruptcy Chapter 7 bankruptcy is also called “liquidation bankruptcy” because it discharges

May 19, 2021 No Comments

How is a mortgage modification different from forbearance?

Your current mortgage servicer may offer forbearance, which allows you to delay or temporarily halt monthly payments. Some plans, however, may increase your interest rate or require a balloon payment when the term expires. As reported by USA Today, approximately 2.2 million American homeowners entered into forbearance by April of 2021. Nearly 60% of homeowners surveyed admitted that forbearance helped them remain financially stable. Many said the money they would have used for mortgage payments went toward utilities, groceries and health care instead. Maryland homeowners

May 15, 2021 No Comments

Does forbearance work the same for everyone?

Circumstances that make life hard can impact your finances. You may suffer a prolonged illness, a severe injury, damage to your property due to a storm, or the loss of a job. These situations may hamper you from making your mortgage payments. To prevent your bank foreclosing on you, you might approach your bank to request forbearance. You probably have a general idea of how forbearance works. Your mortgage lender agrees to pause your mortgage payments or let you pay lower amounts on a temporary

April 29, 2021 No Comments

Are you eligible for a Chapter 13 bankruptcy?

You might disregard bankruptcy for what it is — a useful, and sometimes necessary, tool for debt consolidation. Maybe it represents a failure of money management to you. The reality is that life throws everyone curveballs and sometimes bankruptcy is to the tool to get back on your feet. Each form of bankruptcy has its advantages. According to the United States Courts, they received more than 733,000 bankruptcy petitions. 38 percent of those were Chapter 13 bankruptcies. Does that mean it is an option for

April 9, 2021 No Comments

Understanding the Chapter 7 means test

Choosing to file for personal bankruptcy in Maryland is never an easy decision. Yet almost as difficult of a choice is what chapter of bankruptcy you should file under. You can opt for a Chapter 7 (which allows for the discharge of certain debts) or a Chapter 13 bankruptcy (which provides you the chance to repay your liabilities while halting prejudicial collection efforts). It is that very benefit of having debts discharged that makes Chapter 7 the more popular choice. Many come to us here

April 5, 2021 No Comments

How may a balance transfer affect my credit card debt?

You may have received an offer for a new credit card that provides an incentive for a balance transfer, such as a low or zero-percent interest rate. While it may not immediately reduce your outstanding credit card balances, it may help you manage your monthly payments and assist in paying off debt. A balance transfer typically takes the amount owed on another credit card and places it on your new one. This may leave a zero balance on your former card. As explained by Bankrate.com,

March 22, 2021 No Comments

Are you facing debt collector harassment?

When you struggle with debt, you also struggle with debt collectors. Some may approach their collecting in a reasonable way. After all, the Fair Debt Collection Practices Act (FDCPA) prevents debt collectors from abusing their power. Unfortunately, it still happens. And when it does, you can help yourself by knowing what signs to keep an eye out for. Verbal harassment and threats The Consumer Financial Protection Bureau talks about debt collector harassment and the ways it can manifest. First, it can come in the form

February 18, 2021 No Comments