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Differences between Chapter 7 and 13 bankruptcies

Overwhelming debt can happen to anyone. For many people, bankruptcy is the only option. If bankruptcy is a potential option for you, consider the distinctions between Chapter 7 and Chapter 13 bankruptcies. What are Chapter 7 and 13 bankruptcies? Chapter 7 is a liquidation bankruptcy that halts most creditors from collecting. After three to four months, the bankruptcy will discharge and erase qualifying debt, such as personal loans and medical expenses. Both individuals and businesses can file a Chapter 7. Chapter 13 bankruptcy will reorganize

May 1, 2023 No Comments

Bankruptcy’s automatic stay means protection from creditors

Once you fall behind on your bills in Maryland, it becomes increasingly difficult to catch back up. In addition to the bills you are already struggling to pay, you may now face fines and fees for late payments that increase your debt load even more. The deeper your debt becomes, the more likely you are to experience harassment at the hands of your creditors. However, filing for bankruptcy may grant you temporary protection in this area. According to LendingTree, the automatic stay is something that

April 21, 2023 No Comments

What happens when your revolving balances are too high?

These days, more people use their credit cards than ever before due to the extensive creeping rise of inflation. However, those who fall behind on their credit payments immediately see damage to their credit score. This score gets used by landlords, lenders and even some employers, so it is important to keep a good score however possible. What is a revolving balance? Experian discusses revolving balances in credit cards. This is the leftover amount that a person still owes after they make a payment. With

April 6, 2023 No Comments

What are some ways to minimize credit card debt?

Credit card debt can interfere with your ability to meet other financial obligations in your life. If ignored, a seemingly minor issue could have detrimental consequences that destroy your credit. Using a credit card has a lot of great benefits. However, using one responsibly requires you to make timely payments. Here are some tips to consider if you want to take back control of your credit cards. Prioritize highest APR The annual percentage rate of each of your credit cards is the amount of interest

April 3, 2023 No Comments

Be cautious about foreclosure scams

When facing a foreclosure, you may be willing to try anything to avoid losing your home. While there are plenty of good steps you can take, there are also scams that will leave you in worse shape. Fraudulent foreclosure services will take your money and not offer you any help. There are signs to watch for that signal something is a scam. Collection of fees upfront You should never pay for any type of foreclosure assistance upfront. Maryland law makes this illegal. You should never

March 16, 2023 No Comments

What protection will I get when filing Chapter 13?

Filing bankruptcy is a good move to get protection under the law from collection agencies or lenders. While this is a rather large step to take, it can allow you to save yourself from financial ruin. Making the decision to file can be difficult. You need to weigh the pros and cons. Understanding the protections that Chapter 13 offers can help you with making the choice to file. The automatic stay The main protection offered to you under Chapter 13 comes from the automatic stay.

March 2, 2023 No Comments

Bankruptcy filings soaring in the U.S. after stimulus money disappears

Stimulus checks and payment protection loans kept many Rockville families and businesses afloat during the pandemic lockdowns. That, combined with courthouses being shut for months, kept personal bankruptcy filings low in 2020 and ’21. But these vital pandemic programs both ended in 2021. Since then, the economy has become volatile. Many households’ financial woes, which stimulus and PPP loans helped paper over somewhat, are now faced with massive debt. Meanwhile, rising interest rates and inflation are straining budgets even further and making it harder to

February 27, 2023 No Comments

What are the disadvantages of a home loan modification?

A home loan modification allows you to adjust the terms of your mortgage when you are having trouble abiding by the original agreement. It is an alternative to letting your home go into foreclosure. A modification offers you some benefits, but it also has some disadvantages that you should know before you start the process. Changed terms The different terms under the home loan modification may mean you pay more. You may have higher interest rates and a longer payback period. This means more money

February 15, 2023 No Comments

Should I pay off my credit card balance every month?

Credit cards can lead to serious debt issues. When you carry a balance, unless you have a promotion, you will have interest added on when you fail to pay the balance in full on the due date. Interest adds to what you owe, and it can add up quickly. Good credit use means paying the balance in full every time you get a statement. But there are some things you should know about doing this and how your credit score will reflect it. A myth

February 1, 2023 No Comments

What is the importance of the loss mitigation affidavit?

During the foreclosure process, you will receive multiple documents. It is important to pay attention to what you receive because these papers will provide you with a range of information about the foreclosure and where you are in the process. If you and your lender cannot agree on a loss mitigation option, you will receive a loss mitigation affidavit after the order to docket, which is the filing of the foreclosure with the court. You may receive one of two different affidavits. Preliminary loss mitigation

January 18, 2023 No Comments