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The difference between Chapter 7 bankruptcy and debt settlement

When debt becomes overwhelming, individuals and businesses can wonder which path to take to regain financial stability. Common options include filing for Chapter 7 bankruptcy and seeking debt settlement. While both promise debt relief, they differ in process, benefits and consequences. If you are seeking a way out of debt, how can knowing about Chapter 7 bankruptcy and debt settlement help you manage your financial situation? Chapter 7 bankruptcy Also called liquidation bankruptcy, Chapter 7 bankruptcy is a legal process that wipes out most unsecured

July 30, 2024 No Comments

How home loan modifications impact your credit score

A home loan modification can have lasting effects on your credit score in Maryland. Your credit score influences various aspects of your financial profile and future borrowing opportunities. Initial credit score impact Applying for a home loan modification may cause a slight dip in your credit score. This is because lenders typically conduct a hard inquiry into your credit history when evaluating your request. However, this impact is usually temporary and can be improved with responsible credit management. Payment history and credit usage Once you

July 12, 2024 No Comments

Who may file a reorganization plan in Chapter 11 bankruptcy?

If your business is in serious financial trouble, filing for Chapter 11 bankruptcy could give your enterprise a fighting chance to survive by reorganizing your company and your debts. Creating a reorganization plan for your business is part of this process. While you may anticipate that you can create your own plan, there will be other parties who could have the opportunity to compose competing plans to yours. The debtor The debtor, namely the business that filed for bankruptcy, has the first opportunity to submit

June 28, 2024 No Comments

Effective ways to manage overwhelming credit card debt

Dealing with overwhelming credit card debt can be a daunting challenge for many Maryland residents. However, a few effective strategies can help you manage this financial burden. Create a budget Start by listing all your sources of income, including salary, bonuses, and any other earnings. Track your monthly expenses, categorizing them into essentials like rent, groceries, and utilities, and non-essentials like dining out and entertainment. Analyze this information to understand where your money is going and identify areas for potential savings. Debt consolidation Debt consolidation

June 27, 2024 No Comments

The pros and cons of short sales

A short sale happens when a homeowner sells their property for less than the amount owed on the mortgage. This process can help in certain situations, but it also has drawbacks. Short sales typically occur when homeowners cannot keep up with their mortgage payments. Selling their property at a lower price allows homeowners to avoid foreclosure. While pursuing a short sale might seem simple, it has advantages and disadvantages. Homeowners should be aware of potential consequences and make this decision carefully. The advantages of short

June 7, 2024 No Comments

Can you finish your Chapter 13 bankruptcy repayment plan early?

Chapter 13 bankruptcy offers a way for people to restructure their debts and create a manageable repayment plan. In Maryland, as in other states, it is possible to finish a Chapter 13 bankruptcy repayment plan early under certain conditions. Understanding these conditions can help you achieve financial freedom sooner than you expected. Requirements for early completion To finish a Chapter 13 repayment plan early, pay all priority debts in full. Priority debts include obligations such as taxes, child support and alimony. You must also pay

May 23, 2024 No Comments

What are reasons a bank denies a home loan modification?

It is natural to feel worried about approaching your lender to alter your mortgage terms due to financial hardships that impair your capacity to make payments. However, if your bank rejects your application for a modification, you should not feel discouraged or dejected. Your journey to securing a loan change is likely far from over. The truth is that banks frequently turn down mortgage modifications at the initial application stage, and for reasons that you might be able to correct before sending an appeal. Missing

May 8, 2024 No Comments

5 reasons students can graduate with a lot of credit card debt

College is often a time of growth, learning and exploration. However, for many students, it also marks the beginning of a journey fraught with financial challenges. One can be managing credit card debt. 1. Lack of financial education Many college students enter higher education without a solid understanding of personal finance. They may not understand how credit cards work, how to budget effectively or how to manage debt. Without this knowledge, they may misuse credit cards and accumulate high levels of debt. For example, without

April 29, 2024 No Comments

How Chapter 7 can help small business owners

Running a small business can be a dream come true. But sometimes, even the best dreams hit rough patches. Unexpected expenses, slow sales or a tough economy can leave a business buried in debt. If you are a small business owner facing financial hardship, Chapter 7 bankruptcy may be an option to consider. What is Chapter 7 bankruptcy? Chapter 7 bankruptcy is a legal process that helps individuals and businesses eliminate most of their debts. It is often called “liquidation” bankruptcy because the court appoints

April 24, 2024 No Comments

Why tracking your credit card spending is important

In today’s fast-paced world, keeping an eye on your finances is more important than ever. One key aspect of managing your money effectively is monitoring your credit card spending. Understanding the importance of tracking your credit card transactions can help you take proactive steps toward achieving financial stability. Avoid overspending Monitoring your credit card spending gives you better control over your finances. It also allows you to stay within your budget, avoid overspending and identify unnecessary expenses so that you can make adjustments accordingly. Detect

April 10, 2024 No Comments

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