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Rockville Bankruptcy Law Blog

Be cautious when using credit cards following bankruptcy

People who have filed for bankruptcy are often aware of the impact it can have on their credit report. Once the bankruptcy is discharged, it can be challenging for debtors to find ways to rebuild their credit. Some credit card companies focus their efforts on enrolling people who have filed for bankruptcy, highlighting the benefits that having a credit card can have when rebuilding credit and increasing their credit score. It is important that debtors are aware of the dangers certain credit cards bring, as they may lead them into debt even after they have filed for bankruptcy.

Subprime credit cards allow people with poor credit scores access to a credit card. Due to their low credit score, however, the companies charge inflated fees, high interest rates and other expenses in an attempt to offset the risk of issuing the credit.  People may not understand what they are getting into when signing up with these companies. While having a credit card and paying off the balance each month can often help credit scores to climb, it can be difficult to pay off balance when a myriad of fees, including maintenance fees, processing fees, authorized user fees and annual fees, are applied.

Rural hospital hopes Chapter 11 will lead to better future

When businesses in Rockville are forced into bankruptcy, it is rarely due to one single reason. Rather, a unique (and unanticipated) confluence of factors contributes to it experiencing financial struggles. Oftentimes alternative revenue streams may be available to offset major losses, but when a company specializes in a single service, finding other sources of funds can be difficult. Ultimately, bankruptcy might be the only option if a struggling company wants to stay in business. 

One might think that if any company would be immune from an economic downturn, it would be a hospital (after all, no matter the state of the economy, people will continue to get sick or injured). Yet a rural community hospital in Maine recently filed for a Chapter 11 bankruptcy, citing both reduced insurance reimbursement and declining patient volumes as the reasons for its struggles. The hospital noticed a significant decrease in patient admission after the local area's largest employer went out of business. This change happened to coincide with reductions in reimbursement from both Medicare and Medicaid (a trend that healthcare industry experts say is threatening the financial positions of hospitals across the country). 

Good spending habits means a better life

Millions of Americans find themselves overspending each month. If you can count yourself as one of them, you no doubt want to find ways to keep living the lifestyle you’re comfortable with, but keep your checking account out of the red. The truth is, with some minor adjustments you can do both.

In a recent blog we discussed some less-than-great spending habits you should avoid. This time we will be examining what good habits you can pull into your daily life which will help keep your wallet full. Shoving out those bad habits and embracing these good habits can have a major impact on not only your bank account, but also your peace of mind.

How can I pay off my mortgage early?

The quicker you pay off your mortgage, the less interest you ultimately pay. That’s why many homeowners in Maryland look for methods of paying down their debt faster, which can be a bit difficult for people living on a budget. Taking the right steps can help you get a handle on mortgage debt, as explained by Bankrate.

Increase monthly payments

Deciding if a home loan modification is right for you

You worked hard to save enough for a down payment on your Maryland home. However, life happens. Circumstances change, from losing your job to medical issues and more. If you are falling behind on the mortgage payments that used to be affordable, you may wonder if there are alternatives to foreclosure. At the Law Offices of Richard B. Rosenblatt, PC, our experienced team helps clients obtain reasonable modifications that help save their homes.

Nerd Wallet reports that a loan modification differs from refinancing. It changes the terms of the original loan instead of replacing it with a new mortgage. For struggling homeowners, it may result in lower monthly payments. Many lenders prefer this option as foreclosures are costly. Depending on your circumstances, the modification in payment amount may last for a specific amount of time or the entire life of the loan.

Bankruptcy can provide a second chance for small businesses

If you are a Maryland small business owner struggling to stay afloat, you may be searching for options to keep your company open. Depending on your specific situation, bankruptcy may provide the breathing room you need. At The Law Offices of Richard B. Rosenblatt, PC, we frequently assist clients in finding the best resolution to their debt problems and help them get back on track.

According to Chron, Chapter 11, also known as “reorganization bankruptcy.” While it can be more complicated and expensive than Chapter 7, this option offers protection from creditors and allows your business to continue operating while you get the finances in order. The court requires detailed information regarding your financial situation, the obligation to creditors and assets before debt restructuring can take place.

What are some bad spending habits I should avoid?

If you’re experiencing financial issues, you may be thinking about altering your behavior. In some cases, a person’s spending habits have a direct impact on their financial stability, sometimes leading to insolvency. The Balance offers examples of poor spending habits, as well as tips on how to avoid them.

Relying on credit

What steps can I take to avoid foreclosure?

If you’re a homeowner in Maryland, being faced with a foreclosure is a very upsetting proposition. Having the right information is crucial in this case, both to avoid losing your home as well as to steer clear of any potential foreclosure scams, which could deprive you of even more money. In this case, USA.gov offers the following guidelines.

Look for government assistance

How can I manage holiday spending and avoid credit card debt?

Overspending during the holidays can feel like an inevitability. As much as you try to stick to a budget, you end up spending more than you anticipated. While it may feel good in the moment to be giving gifts to your loved ones, the long-term effect of debt can be crushing.

Here are five tips for managing your holiday expenses during and after the season.

Other benefits of eliminating credit card debt

Every day, people across the country spend more than they can afford to when using their credit cards. However, this spending is not always an example of irresponsible behavior. Some people find themselves in a position where they have no choice but to rack up credit card debt in order to buy groceries for their kids or pay bills. Unfortunately, this can lead to even greater financial hardships down the road and some people do not realize just how far they can fall behind due to interest payments. Ultimately, some people file for bankruptcy in order to clear this debt and doing so can offer a number of advantages.

Aside from financial considerations, there are other perks associated with the elimination of credit card debt. For starters, people may find peace of mind and relief from creditors who are constantly harassing them. This debt can weigh on a person's mind heavily and it can lead to stress, sleep loss, depression and other challenges. By getting rid of this debt, you may find a sense of freedom and you may also be able to enjoy life once again. Your loved ones may even feel as if the "old you" has returned.

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