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Mayfield real estate and bankruptcy legal blog

Buying cars while in Chapter 13 bankruptcy

Ohio residents who file for protection under Chapter 13 of the bankruptcy code will be required to repay a portion of their debts during a repayment period that lasts three or five years. Due to the length of the repayment period, it is possible that the debtors may need to purchase vehicles before their bankruptcy cases are completed.

People who need to buy new cars while they are still in their repayment periods must do several things. They will first need to find lenders that are willing to work with them. Potential sources might be credit unions or dealerships that work with lenders who accept people with poor credit. After debtors have found lenders and dealers, they will need to have the dealers draw up buyers' orders that they can take to the trustees.

Why cardholders are late on store credit card payments

According to Equifax, the delinquency rate on store credit cards reached 4.65 percent, which is the highest it's been since 2011. There are many reasons why this is the case, such as the fact that interest rates on store cards tend to be higher than with other credit cards. The average interest rate in Ohio and around the country is 25.5 percent for a store card compared to 16.73 percent for all others.

Some consumers choose to stop making payments on their credit cards after the store goes out of business. Cardholders may mistakenly believe that they don't need to pay down the remainder of their balances. However, the lender that made the credit line available is still entitled to receive its money back. Failing to make a store credit card payment could be reported to credit bureaus, which could harm a person's credit score.

Title troubles: 3 FAQs for when there’s a lien on the title

There is a long list of things that can go wrong with the title when you’re looking to buy a new home. The good news is that there is an even longer list of solutions to clear up those issues. But figuring out where to begin in that process is a question with a lot of answers.

You went through all the right steps. You got title insurance and hired a title company to look into the title of your new home, now, just a few days before closing, there’s a lien on the title. That one detail can throw a pretty big wrench in your closing day plans.

Filing a Chapter 7 bankruptcy in Ohio

Ohio residents who find themselves in unmanageable financial situations can pursue debt relief by filing a Chapter 7 or a Chapter 13 personal bankruptcy. Individuals who file Chapter 13 bankruptcies consolidate their debts and then make monthly payments for between three and five years to pay them off, but those who file Chapter 7 petitions see most of their unsecured debts discharged and are generally no longer required to make any type of restitution.

This can make filing a Chapter 7 bankruptcy seem like a far more appealing proposition, but not every individual with overwhelming debt is able to qualify. The nation's bankruptcy laws were revised in 2005, and new rules were put into place to prevent those who are able to afford monthly payments from filing a Chapter 7 petition. This means that most individuals who pursue this kind of debt relief are either destitute, unemployed or living on very limited incomes.

Commercial real estate can also entertain potential buyers

Many investors in Ohio are interested in exploring the growing commercial real estate market. When selecting a project to invest in, there are a number of factors to consider, especially when trying to choose a property that shows potential for great profitability in the long-term. Location is one major factor, but the industry is highly competitive; technological advancements can also play a role in making a particular commercial real estate venture appealing and profitable.

Commercial real estate developers can focus on creating an experience for potential clients. In fact, there are aspects of entertainment that can be incorporated into such projects. For example, theme parks plan and study the interaction of their visitors with each attraction. The layout of a park is designed to guide visitors through a planned experience. In commercial real estate, clients are not coming for a sensory experience. However, developers can add some entertainment factors and a keen sense of space to maximize the value of their properties.

About voluntary bankruptcy

Ohio residents who have substantial debts that they are unable to pay off may consider voluntary bankruptcy. Voluntary bankruptcies are those that are started by debtors rather than instigated by a creditor to whom a debtor owes.

Declaring bankruptcy requires significant consideration. Debtors should be aware that a bankruptcy will not erase all of their debts. The debts that are eliminated are dependent on the type of bankruptcy a debtor may file and the types of debts in question.

Two major concerns debtors may have about bankruptcy

As the economy continues to recover, many Americans still deal with debt problems. Whether it is due to natural disasters (i.e. Hurricane Harvey) or because of prolonged illnesses, financial difficulties can lead to despair for just about anyone.

Despite this, people may be ambivalent about seeking bankruptcy protection because of the potential effect on their credit report, and whether they would be able to obtain credit in the future. Indeed, these are two very valid concerns, so this post will address them. 

Tips for rebuilding credit after bankruptcy

One concern people in Ohio might have regarding filing for bankruptcy is how it will affect their credit rating. Although bankruptcy can remain on a person's credit report for as long as 10 years, it is possible to begin rebuilding credit soon after bankruptcy and to have a good score within a few years. One study found that nearly two-thirds of people had a credit score of at least 640 two years after filing bankruptcy.

The first thing a person should do after a bankruptcy has been discharged is apply for a secured credit card. This requires providing a deposit, and the initial credit limit for the card will be at or around the amount of the deposit. This card should be used at least monthly and also paid off monthly. One good idea is to put a recurring monthly charge on it. It is best if the charge is less than 20 percent of the credit available. This shows that a person will not use up all the credit and responsibly pays the monthly bill.

Debunking some of bankruptcy's many myths

Bankruptcy is a loaded term and the process certainly has a stigma. Whether you are applying for Chapter 7 or Chapter 13 bankruptcy, there will be many questions running through your mind about what steps to take and how to complete this difficult legal moment in your life. We assure you that it can all work out, and that bankruptcy shouldn't be feared as much as it is.

Given the fear and anxiety that surrounds bankruptcy, in today's post we want to debunk some of the myths that people tell about bankruptcy. One of the primary myths of bankruptcy is that when you file for it, you will lose all of your critical assets such as your home and your car. To the contrary, this is highly unlikely. Exemptions can be utilized to protect your critical assets.

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