Category Archives: Consumer Credit

Filing for a bankruptcy can clear consumer credit such as credit cards and payday loans.

Bankruptcy options available to financially distressed renters with eviction moratorium set to expire this month

The Centers for Disease Control (CDC) recently announced that they were extending the moratorium on evictions for another month to July 31. However, the CDC also announced that this would be the final extension of the moratorium. With the COVID-19 pandemic wreaking havoc on many people’s finances, this is short-term welcome news for tenants who are worried about eviction. However, it is important to know what the moratorium actually means and to plan ahead for when it ends. The words “moratorium” or “ban” can be somewhat misleading, as it makes it seem as if everyone is protected — but really, not everyone is covered and there are steps you need to take to be protected. The CDC has produced a form that you have to fill out and provide to your landlord. If your landlord has filed an eviction suit against you, you should provide a copy of the form…
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Rebuilding Credit After a Student Loan Default

Student loan defaults affect millions of borrowers. Many more borrowers may default in the near future if recent research turns out to be correct. Like with many forms of debt, your credit scores will take a hit after a student loan default. Credit scores affect your ability to qualify for loans, jobs and housing. As a result, it is important to have information that can help you rebuild your finances after defaulting on student loans.  Step 1: Get Out of Default Getting out of default will not be an option for everyone. Private lenders may not offer terms that allow borrowers to rehabilitate defaulted loans. Fortunately, federal borrowers are far, far more likely to have this option available. There are several ways to get your federal student loans out of default. The first way is to take advantage of the Department of Education’s loan rehabilitation program. You cannot enroll in…
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Bankruptcy and Credit: Should You Worry About It?

Credit scores are a common concern for people who are considering bankruptcy. In fact, worries over credit scores are a common reason why people sometimes wait to file their cases. Although bankruptcy affects your credit scores, chances are you have more important things to worry about if you are considering bankruptcy. How Bankruptcy Could Affect Your Credit Bankruptcy’s effects on credit scores will vary from person to person, but there are some universal rules. For Chapter 7 cases, the bankruptcy does appear on your credit for up to 10 years from your filing date. Chapter 13 cases remain on your credit reports for seven years after they conclude. It is important to understand that not filing for bankruptcy could have an even more negative effect on the long-term health of your credit scores. For example, creditors are still going to report unpaid debts to the three credit bureaus after a…
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