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All about chapter 7 bankruptcy

Chapter 7 bankruptcy involves liquidation. That is the sale of an individual’s nonexempt property, where the court distributes proceeds among creditors. Here is more on this type of bankruptcy and how it compares to others. Alternatives There are many types of bankruptcy besides chapter 7 liquidation. Businesses wishing to avoid liquidation or stay in business should avoid this. Chapter 11 is a better option in this situation. That type of bankruptcy allows for reorganization and debt reduction or extensions of repayment periods. Additionally, chapter 13

January 5, 2023 No Comments

What debts can you discharge in bankruptcy?

Even though a Chapter 13 filing will lead to a repayment plan with the goal of repaying your debts, you may still discharge some debts in the process. Once you complete the repayment plan, the court will remove any dischargeable debts. But it is important to understand that you cannot discharge all debts in bankruptcy. Debts you cannot discharge The court will consider which debts you can discharge and which you cannot when designing your repayment plan. You will usually work to repay the debts

January 4, 2023 No Comments

Is home loan modification a good idea when interest rates are high?

The main idea of modifying a home loan is to usually save money. It can help to reduce monthly payments and even shorten the loan term in some situations. But when interest rates are high, you may wonder if a modification would be a good idea. There are a few considerations to make about whether modifying your mortgage would be beneficial in your situation. Current interest rate Even with high interest rates, the current rate may still be lower than when you got your mortgage.

December 20, 2022 No Comments

Secured credit cards can contribute to your credit score after bankruptcy

After bankruptcy, most lenders will not give you a traditional credit card right away. You must rebuild your credit and prove to lenders that they can trust you as a borrower. Secured credit cards can help you build your credit again. Like traditional credit cards, secured credit cards help you build your credit score if you practice responsible habits. What is a secured credit card? Unlike a traditional credit card, the secured credit card requires you to make a deposit. Your deposit serves as the

December 6, 2022 No Comments

What is a Notice of Intent to Foreclose?

During the foreclosure process, you will receive various documents that allow you to know what is happening. The first document you will get is a Notice of Intent to Foreclose. This notice is your warning that the lender is going to file a foreclosure. It is essential to pay attention to it. The details The NOI will tell you that the lender is considering filing a court case to take your home because you are overdue on a loan payment. It should contain information that

November 18, 2022 No Comments

How to improve your credit for greater loaning power

Applying for credit can help you make major purchases, such as a new car or a home, but is sometimes a daunting task, especially when your credit score is not as high as you would like. According to CNBC, securing credit and loans are now more difficult to secure for the average American, putting larger purchases out of reach. If you want to raise your credit score to gain more financial opportunities, performing a few simple financial actions may help you do so. Avoid late

November 8, 2022 No Comments

How will Chapter 7 bankruptcy affect your interest rates?

When personal debts become too much to handle, one of the most common solutions for reprieve is to file for Chapter 7 bankruptcy. Doing so gives you time to liquidate assets and repay your creditors, but it can also have a negative impact on your interest rates going forward. While bankruptcy might be your only option for overcoming a pressing financial dilemma, it is important to consider how it will affect your long-term finances as well. By understanding how Chapter 7 bankruptcy can impact interest

November 4, 2022 No Comments

3 poor credit habits that keep you in debt

Millions of Americans find themselves mired in credit card debt that can severely impact their credit scores and the opportunity to secure the ability to make major purchases, such as a vehicle or a home, in the future. The credit reporting company Experian notes that those with poor credit use nearly 80% of their available credit limit on the cards they carry, which creates considerable debt and higher minimum payments each month. If you find yourself bogged down with severe credit card debt, you may

October 21, 2022 No Comments

How does financial difficulty affect mental health?

Having significant debt is a challenging situation, but can it actually affect mental health? In 2021, researchers conducted a study on the effects of financial difficulty on mental health. The National Library of Medicine published the results. How do financial difficulty and debt affect mental health? The study likened financial difficulties to natural disasters, such as hurricanes and earthquakes, and human-made disasters, such as terrorism as well. As with disasters, people experiencing financial difficulty can experience high levels of stress for extended periods of time.

October 10, 2022 No Comments

Is a debt collector trying to trick you?

Debt collectors must follow the Fair Debt Collection Practices Act (FDCPA) in order to ensure that they collect their money ethically. However, not every debt collector will abide by these standards. It is important to recognize debt collector misdemeanors and misbehavior when it happens. Breaking down a collector’s threats The Consumer Financial Protection Bureau discusses debt collector behaviors. Generally speaking, debt collectors will abide by the rules and regulations of the FDCPA. Sometimes, however, they may attempt to trick or deceive a person they wish

September 23, 2022 No Comments