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How can homeowners identify foreclosure prevention scams?

Foreclosure can be a stressful and overwhelming experience. Scammers take advantage of homeowners in difficult situations by offering false promises of relief. Knowing the warning signs of foreclosure scams can help homeowners avoid losing money and making their financial situation worse. Common foreclosure scam tactics Scammers use deceptive tactics to trick homeowners. Some claim to have direct connections with lenders and government programs. Others offer guarantees to stop foreclosure for an upfront fee. Some scammers pose as legal professionals and ask homeowners to sign over

February 26, 2025 No Comments

What assets are protected in Chapter 7?

Filing for Chapter 7 bankruptcy in Maryland allows you to eliminate certain debts while keeping essential assets. State exemptions help protect your home, car, and personal belongings, ensuring you can maintain stability after bankruptcy. Homestead exemption Maryland law protects up to $25,150 of equity in your primary residence. This exemption applies to houses, condominiums, co-ops, and permanently affixed manufactured homes. Married couples cannot double this exemption when filing jointly. Personal property exemptions Maryland allows you to keep up to $1,000 in household goods, including furniture,

February 13, 2025 No Comments

How does a loan modification affect your mortgage terms?

A loan modification can change your mortgage terms in several ways, making your loan more manageable. If you’re struggling with payments, adjusting your loan terms might be an option. Understanding how these changes impact your mortgage can help you make informed decisions. Lower monthly payments One of the main benefits of a loan modification is a lower monthly payment. Lenders achieve this by extending the loan term, lowering the interest rate, or both. In Maryland, programs like the Maryland Homeowner Assistance Fund offer support for

January 30, 2025 No Comments

When credit card debt becomes non-dischargeable in bankruptcy

Credit card debt is often one of the primary reasons people consider filing for bankruptcy. Filing for bankruptcy gives you the chance to rebuild your financial situation, and it may even discharge much of your debt. While bankruptcy often discharges many forms of credit card debt, there are situations where the court may deem this type of debt non-dischargeable. Understanding these scenarios can help you prepare for the challenges of the bankruptcy process. When there is suspicion of fraud One of the main reasons credit

January 15, 2025 No Comments

What is the role of a bankruptcy trustee in a Chapter 13 case?

In a Chapter 13 bankruptcy case, the trustee plays a key role in overseeing the process and ensuring all parties follow the rules. The trustee acts as an intermediary between the debtor, creditors, and the court. Reviewing the repayment plan The trustee reviews the debtor’s proposed repayment plan to ensure it meets legal requirements. In Chapter 13 cases, the plan must demonstrate how the debtor will repay creditors over three to five years. The trustee evaluates whether the plan is feasible and provides recommendations to

January 10, 2025 No Comments

Is a short sale the right option for preventing foreclosure?

Facing the possibility of foreclosure can be overwhelming for homeowners. One potential solution is a short sale, where the lender agrees to accept less than the remaining mortgage balance for the property. While this option can help homeowners avoid foreclosure, it is essential to understand its benefits and drawbacks. Understanding the benefits of a short sale A short sale allows homeowners to avoid the damaging effects of foreclosure on their credit. Although a short sale still impacts credit scores, it is generally less severe than

January 6, 2025 No Comments

Maryland’s Chapter 7 means test: Are you eligible for bankruptcy?

The means test is a financial assessment used to determine if you’re eligible for Chapter 7 bankruptcy. The goal? To ensure that people who can afford to repay some of their debts don’t use Chapter 7 bankruptcy to wipe out all their debts unfairly. This step generally follows a two-step process. Step 1: Comparing your income to Maryland’s median You will need to calculate your average monthly income for the six months before filing for bankruptcy. This includes most types of income, such as: Wages

December 18, 2024 No Comments

How are retirees managing credit card debt amidst rising costs?

Retirees are facing growing challenges as living costs continue to rise, and many are struggling with escalating credit card debt. Retirees must find ways to manage this debt while navigating the pressures of fixed incomes and increasing expenses. Budgeting and cutting expenses One of the ways retirees are managing their credit card debt is by creating stricter budgets. With rising costs for essentials like food, healthcare, and housing, many retirees are cutting non-essential expenses to make ends meet. This may include downsizing to smaller homes,

December 6, 2024 No Comments

Reasons banks reject home loan modification applications

Are you feeling frustrated after your bank denied your home modification loan application? Many people find themselves in this challenging situation, wondering why a lender turned down their request for financial relief. In this blog, we’ll explore the common reasons banks reject these applications and offer some guidance on what you can do next. Whether you’re dealing with financial hardships or simply trying to improve your living conditions, understanding the factors behind these decisions is the first step toward finding a solution. Why do banks

November 15, 2024 No Comments

How does Chapter 11 impact franchise agreements?

Franchise businesses facing financial struggles may consider Chapter 11 bankruptcy to restructure debt and continue operations. The impact of Chapter 11 on franchise agreements can vary, depending on the terms of the contract and court decisions. Understanding how Chapter 11 influences franchise relationships is crucial for both franchisees and franchisors. Treatment of franchise agreements during Chapter 11 When a franchisee files for Chapter 11, the bankruptcy court decides whether the franchise agreement remains in effect. The franchisee can either assume or reject the agreement. Assuming

November 1, 2024 No Comments

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