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What is the 341 meeting and why is it important to attend?

If you are planning to file for Chapter 7 or 13 bankruptcy protection, you must attend the 341 meeting. This is an important stop on your way to a brighter financial future. Each person you meet here will have an interest in the outcome of your bankruptcy. Understanding the meeting Also called the meeting of creditors, the 341 meeting is so named for Section 341 in the United States Bankruptcy Code. The meeting takes place outside of court in a more informal atmosphere. Shortly after

October 20, 2020 No Comments

Why do people think credit card balances increase credit scores?

One of the most damaging myths out there is that carrying a balance on your credit cards directly increases your credit score. An interest-bearing balance does not improve your score. It is not necessary to establish a credit history. It does not give you points with lenders for paying them interest. Here are two of the reasons people believe that it does. Carrying other types of balances could increase your score As explained by Experian, a more diverse credit mix could increase your score —

October 16, 2020 No Comments

How are Chapter 7 and Chapter 13 bankruptcies different?

Many residents of Maryland have a hard time staying on top of their bills and finances. If you are among them, you may be thinking about filing for personal bankruptcy. Most who do so move forward with either a Chapter 7 or a Chapter 13 filing, but there are some key differences between the two types. Chapter 7 and Chapter 13 bankruptcies also have different eligibility requirements, so it is important that you have a firm grasp of both types before moving forward. What are

September 23, 2020 No Comments

A deed in lieu of foreclosure may stop foreclosure

When faced with foreclosure on a home, any idea may sound like a good idea. Is a deed in lieu of foreclosure one worth pursuing or will it only cause more problems for homeowners? Honestly, getting a bank to agree to a deed in lieu of foreclosure may prove difficult and the homeowner may still end up losing the home. According to Bankrate, when a homeowner chooses a deed in lieu of foreclosure, instead of forcing the bank to seize the property, he or she signs

September 18, 2020 No Comments

Is it possible to foresee a bankruptcy in your future?

While bankruptcy can be incredibly helpful when you have financial trouble, it is best to avoid financial difficulties completely. Filing bankruptcy can prevent you from losing more money and keep you from incurring judgments against you, but it also takes time and money, so it is far easier to take time to watch for clues that you could end up in a bad financial situation. According to Dave Ramsey, there are some signs that may forecast a bankruptcy in your future. You have a lot of

August 27, 2020 No Comments

When does credit card debt affect a relationship?

When it comes to dating and marriage, finances can be a deal-breaker. Poor financial management can seriously damage a relationship. When a person struggles with credit card debt, it can lead to other partners finding him or her undesirable. Fortunately, there are ways to get out of credit card debt and other types of debt. The most undesirable types of debt include credit cards, payday loans and student loans. CNBC explains how debt affects relationships. What is the average debt? Most consumers have around 6,000 dollars

August 14, 2020 No Comments

What is a home loan modification?

If you struggle to pay your mortgage, you can ask your lender to modify your home loan. This process, called mortgage loan modification, may provide lower payments, a lower interest rate or a combination of the two. Explore this program to learn whether it may help you keep your home if you have excessive debt. How modification works Your mortgage lender has the discretion to modify the terms of your loan with your agreement. Review the terms of the proposed modification carefully. Depending on the

August 12, 2020 No Comments

How secured and unsecured debt differ

People struggling to stay on top of their debt may have a mix of different types of bills to pay. These may include medical bills, credit card debt, automobile loans and more. Not every type of debt is the same and consumers should learn about the two primary forms of debt, secured and unsecured, and how they differ. Secured debt As explained by The Motley Fool, a secured debt is connected to an actual asset that the lender may be able to put a lien

July 30, 2020 No Comments

Can extra mortgage payments help avoid foreclosure?

If you experience a boost in your personal fortunes thanks to a job raise or an inheritance, you may decide now is a good time to pay more on your mortgage so you can finish paying it off more quickly. While paying off your mortgage faster can be a good thing, making extra payments might actually cause you trouble. If you have enough money to pay off your mortgage early, you should not have a problem. However, if you need future income to make the

July 23, 2020 No Comments

Car repossessed? Bankruptcy may still make sense.

Having a car repossessed due to missed loan payments can make a troubling situation feel impossible to overcome. If a lender repossesses a vehicle, is there any point in still filing bankruptcy? Oftentimes, yes, and quickly if one hopes to get the car back. Many repossessed vehicles are sold at auction for less than the balance of the loan. A creditor will likely file a lawsuit to collect the deficiency, so the borrower will still be on the hook for what is owed. If the

July 21, 2020 No Comments