It has long frustrated many, including personal finance guru Suze Orman, why someone can use bankruptcy to eliminate debt racked up on cars, clothes, travel and other nonessentials, yet student loan debt is pretty much stuck to you for life. Individuals have received...
Year: 2020
What is the chapter 7 means test and how does it work?
For individuals and some businesses, chapter 7 bankruptcy may be their best option for a fresh start. Referred to as the “liquidation” bankruptcy type, chapter 7 involves the debtor giving up significant assets. These assets are then distributed and sold and the money...
5 Signs you’re in over your head financially
Most people in the U.S. are living with some type of debt looming over them. In 2016, American household debt, including mortgages, home equity loans, credit cards, student loans and auto loans, reached a staggering $12.58 trillion. The average household alone carries...
Chapter 13 bankruptcy can help struggling consumers start over
Bankruptcy can get a bad reputation. When people hear of someone they know filing for bankruptcy, some people assume that money mismanagement is the root cause. However, many fall into financial despair due to circumstances beyond their control. Whether it be divorce,...
Business disruptions and bankruptcies in difficult times
The first half of 2020 has brought a one-two punch to many small business owners in Maryland, along with many other American families and businesses throughout the region and nationwide. First, the COVID-19 virus pandemic, which was defined as such in early March,...
Consider credit counseling before filing for bankruptcy
Before a person can declare bankruptcy, they must participate in credit counseling. This financial advice helps people understand their budgets and pursue alternative solutions. Credit counseling helps people avoid bankruptcy, which should remain a last resort for...
3 tips for rebuilding your credit after filing for bankruptcy
People are often reluctant to file for bankruptcy because they are concerned about the impact it will have on their credit score. However, you are already taking a hit to your credit if you’ve fallen behind on your bills. Avoiding available debt relief options may...
4 ways the automatic stay can help you
When you’re struggling with debt, creditor harassment can only make things worse. Fortunately, when you file for bankruptcy protection, a provision called the “automatic stay” kicks in. The automatic stay effectively ends any actions taken against you by creditors and...
COVID-19 Information – Loan Modifications
COVID-19, also known as the coronavirus, has created an economic disruption unseen since the Great Depression. There are many people who are unemployed who, through no fault of their own, have fallen behind on their mortgage payments. There are several ways to catch...
Ways to avoid foreclosure
Getting behind on mortgage payments is scary and stressful. It does not take too long before the process of foreclosure begins. The good news is there are resources for those who are struggling to keep up with payments. Taking the right steps can prevent someone from...