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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

What are some deed-in-lieu agreement benefits and challenges?

Homeowners facing financial hardship may struggle to keep up with mortgage payments, putting them at risk of foreclosure. A deed-in-lieu of foreclosure can be a useful tool to avoid the stressful and damaging process of foreclosure. This option allows homeowners to voluntarily transfer ownership of their property to the lender, helping to resolve the debt without the negative impact of a formal foreclosure. Understanding deed-in-lieu agreements A deed-in-lieu of foreclosure is an agreement between the homeowner and the lender. With this agreement, the homeowner gives

October 30, 2024 No Comments

Can Chapter 13 bankruptcy discharge tax debts in Maryland?

Tax debt can be one of the most challenging types of debt to manage. For those struggling financially, filing for Chapter 13 bankruptcy may provide some relief. Understanding whether Chapter 13 can discharge tax debts is necessary for making informed decisions under Maryland law. Types of tax debts eligible for discharge Not all tax debts are eligible for discharge under Chapter 13 bankruptcy. To qualify, the tax debt must be income tax owed to the federal or state government. You typically cannot discharge property taxes,

October 15, 2024 No Comments

How does Chapter 7 bankruptcy impact small business owners?

Chapter 7 bankruptcy can be a viable option for small business owners who face overwhelming debt. However, it’s important to understand the long-term consequences before proceeding. Impact on personal credit Chapter 7 bankruptcy remains on personal credit reports for up to 10 years. This can make it difficult for small business owners to secure personal loans, lines of credit, or even credit cards, which are often crucial for both personal and business needs. Loss of business assets For small business owners operating as sole proprietors,

October 2, 2024 No Comments

What disqualifies you from a loan modification?

Loan modifications can be tricky, especially when figuring out what might stop you from qualifying. A loan modification can be crucial for homeowners who are facing tough financial times and can’t meet their mortgage payment obligations. What is a loan modification? A loan modification is a change made to the terms of an existing mortgage to make the loan more affordable for the borrower. It’s designed to help struggling borrowers avoid foreclosure by making the payment more affordable. The primary disqualifiers: There are a few

September 18, 2024 No Comments

How much credit card debt is normal?

When it comes to credit card debt, many wonder how much is considered normal. Understanding this can help you gauge whether your financial situation is on track or if you need to make adjustments. Average credit card debt In Maryland, the average credit card debt per household is approximately $6,933, which is higher than the national average of around $5,800. While residents commonly carry a balance, the amount varies widely depending on individual circumstances. Comparing your debt to the state average can give you insight

September 4, 2024 No Comments

Will Chapter 11 bankruptcy affect my commercial lease?

Chapter 11 bankruptcy offers business owners the chance to reorganize their debts and continue operating. However, it can raise genuine questions about the future of commercial leases. For entrepreneurs in Maryland, understanding how Chapter 11 bankruptcy impacts commercial leases is important for making informed decisions during the restructuring process. What happens when you file for Chapter 11 bankruptcy? When a business files for Chapter 11 bankruptcy, an automatic stay immediately goes into effect. This stay prevents creditors, including landlords, from taking any action to collect

August 30, 2024 No Comments

Foreclosure vs. bankruptcy: long-term credit impact

Homeowners facing financial hardship may need to decide between foreclosure and bankruptcy. Both options affect your credit in the long term, so understanding their differences helps you make an informed decision. Impact of foreclosure on credit If you can’t prevent foreclosure, it can severely damage your credit score, typically lowering it by 100 to 160 points. This negative mark stays on your credit report for seven years, making it challenging to qualify for new loans, credit cards, or rental agreements. Lenders view foreclosure as a

August 21, 2024 No Comments