Down the street from the Boston Bankruptcy Court is the giant Borders Books bookstore at the historical intersection of Washington Street and School Street. This is two blocks from our Boston bankruptcy law office. Borders Group, http://www.borders.com/online/store/Home Inc. filed for bankruptcy protection in New York, and will be liquidated shortly. However, there is a large effect for consumers here in Boston. A Boston bankruptcy lawyer’s perspective:
The Borders Chapter 11 bankruptcy case was filed on February 16, 2011. At the time there were 17,500 employees. Borders started in 1971 as a used bookstore in Ann Arbor, Michigan, by two brothers, Tom and Louis Borders. It is still based there. In 1992, they sold their growing company to Kmart, which packaged it with Waldenbooks and sold it off in 1995.
According to the Bankruptcy Court filings, the Borders Group listed debts of $1.29 billion. Sales are lower and lower and, without textbook sales, the Borders numbers look bad.
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The good news of having a bankruptcy record on your credit report does not mean you can’t buy a home. Believe me or not but people who have gone through bankruptcy have been able to encouraged themselves to build credit by taking on debt again
But the bad news is that the debt will be closely scrutinized and may come in smaller amounts and high interest rates. This usually happens because when you experience bankruptcy you are now tagged as high-risk borrowers.
But these negative thoughts rather facts should not dishearten those with deprived credit account from investigating their home loan options. The conscientious use of credit is the only way up from a bankruptcy filing.
Bankruptcy can provide liberation to people in terrible financial straits by releasing them from the obligation to repay their debts.
It’s a drastic move for anyone because a bankruptcy will stay on a person’s credit rating for up to 10 years, effectively acting like a warning flag to anyone considering lending that person money or a line of credit. Read more…
Bankruptcy becomes a viable option for someone who is “upside down” in terms of cash flow. In other words, when a person has more money going out each month than coming in, bankruptcy should be considered if no reversal of this negative cash flow is within sight. The longer someone waits to explore the various options available, the more serious his or her situation may become.
One of the worst things people can do in this situation is to borrow more money to try and pay off their debts. On paper, this is clearly an unwise financial decision. In the real world, however, it is very common for individuals to pursue this strategy in an attempt to buy time and hold off on filing for bankruptcy. On the surface, this is certainly a noble notion; however it can often compound the problem and serves only to delay the inevitable.
For many homeowners in the midst of this upside down cash flow, speaking to a qualified mortgage professional is a much better option. Read more…
Not everyone who files for bankruptcy is a deadbeat. Sometimes simple bad luck or poor choices is the overriding factor in piling on more debt than you can handle. A lost job; a severe illness; and yes, overspending can all lead you on the long road of too much debt that can ultimately leave you struggling to survive and a need to file bankruptcy in order to make a fresh start.
Think you may be headed toward bankruptcy? Look for these warning signs to get control over your finances before it’s too late:
Warning Sign #1: Too Much Credit Card Debt.
Credit cards debt is the biggest financial disease striking American households today. With the average credit card debt now toppling $10,000 or more, it’s no wonder that today’s consumer is feeling the pinch. No one should ever charge more than 40% of their current credit limit on any charge card, and if you’re only able to make the minimum payment on your current income, it’s time to put those credit cards away! Read more…
Bankruptcy may seem like a quick and relatively easy fix to a big problem, but it isn’t. First, it can haunt your financial life for a decade or more, keeping you from owning a home, buying a new car, or even living the life you really want.
Maybe you’re debt is beginning to weight you down. It’s not to late t change some bad habits and reverse your financial woes. How can you avoid bankruptcy? Here’s a good place to start:
Get Control of Your Spending:
Less than 43% of Americans today have more than $1,000 saved for a rainy day. Living paycheck to paycheck is a dangerous, considering that emergencies happen every day. Cars break down; people get hurt and miss work; unexpected pregnancies force women out of the workforce, and more. If you’re struggling to pay your bills now, imagine the chaos an unexpected layoff would cause.
Sure, not everyone has the ability t save a large chunk of their salary, but almost everyone can put $5, $10 or even $15 a week away in a savings account. Read more…
Bankruptcy can be the worst item to have on your credit report. No matter what the circumstance that led you to file, it doesn’t make a difference. It shows lenders that you were unable to pay off your debt.
This will stay on your credit report for ten years and it will take some time for you to get back to having a good credit score. It will take some work, but it is possible.
You can still get financed with bad credit or a bankruptcy, from certain lenders. There are specialized loans available for people who have bad credit and it is possible to qualify. When looking to get financed after bankruptcy, keep in mind that you will have a high interest rate upon approval.
Bankruptcy is viewed as a risk by lenders, so the higher interest rate is a reflection upon your credit score and past credit history.
Obviously a bankruptcy will have lowered your credit score, but lenders will also want to take a look at your credit history. Read more…