consequences

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We’re writing today to address the unintended consequences that may result from the real estate agent commission dilemma stemming from recent lawsuits. As leaders of a non-profit, the Association of Independent Mortgage Experts (AIME), we advocate for over 65,000 wholesale mortgage brokers and homebuyers nationwide. There are multiple lawsuits challenging the prevailing structure of real estate agent commissions, and, as a result, there is no shortage of industry conversation on the topic.

Specifically, these lawsuits and surrounding conversations address the convention of sellers bearing the cost of commissions for both their agent and the buyer’s agent.

In this open letter, our discussion is deliberately narrow, centering exclusively on potential adverse impacts to the mortgage industry and borrowers that might arise if, as a result of this lawsuit, buyers find themselves compelled or expected to shoulder the cost of buyer agent commissions. Our analysis does not extend to the broader market ramifications, as such considerations fall outside our expertise.

Future homebuyers will undeniably feel the impact of this conversation for decades to come. As advocates for homebuyers, we feel it’s our responsibility to address the potential ripple effects for homebuyers nationwide.

The complexity of the home-buying ecosystem is vast. A single home purchase transaction involves buyers, sellers, real estate agents, mortgage lenders, settlement companies, appraisers, insurance companies, and court systems, to name a few. Modifying the operational dynamics of one component can send shockwaves throughout the entire system. Below, we shed light on the potential unintended consequences to mortgages and specific consumer groups should buyers be compelled to cover their agent’s commissions.

  1. Impact on military servicemembers and veterans

Foremost, this shift would adversely affect a group of individuals who’ve already given so much to our nation: our active-duty military servicemembers and veterans. VA Guidelines categorically prevent buyers from paying agent commissions (“VA Lender’s Handbook,” Chapter 8, Section 3, Subsection c). Consequently, should buyers be tasked with these fees, our military community would face the untenable choice of forgoing real estate agent representation or not availing their VA home benefit. Even in a scenario where paying agent commissions becomes a norm but isn’t mandatory, VA buyers stand to lose. Their offers — asking sellers to shoulder all commissions — might be overlooked in favor of more conventionally structured bids, especially in competitive markets.

  1. Impact to first-time homebuyers

Moreover, first-time homebuyers (FTHB), particularly those from marginalized communities, would encounter heightened barriers. With home prices and interest rates climbing steadily, the barrier to homeownership is already too high. While the minimum down payment for FTHB on conventional financing stands at 3%, bearing agent commissions would effectively double this threshold in many instances.

  1. Impact on the appraisal process

Incorporating inconsistent agent commission payment patterns — sometimes by buyers, other times by sellers — could compound complexities in the appraisal process. Determining property values involves analyzing several variables beyond just sale prices. Appraisers consider seller closing-cost credits, transaction nature, property conditions and more. Injecting “Who bore the buyer’s agent commission?” into this matrix, especially when such data isn’t currently available to appraisers, complicates matters further, destabilizing confidence in the value of the loan’s collateral.

  1. Impact on down payments

Down payment costs are already a source of concern for many potential homebuyers. With this potential impact on borrowers, their intended down payment could be adversely impacted. For example, a homebuyer intending to put down a 20% down payment may now only be able to afford to put down a 17% down payment, thus needing to incur Private Mortgage Insurance (PMI), which could raise their monthly mortgage payment significantly.

Change, though often inevitable, does not operate in isolation. A shift in one part of the ecosystem can trigger unintended consequences throughout the entire ecosystem and its inhabitants. This principle holds true both in nature and in real estate transactions. While some outcomes can be foreseen, where there is smoke, there is fire, and we can be fairly certain that there are additional, unforeseen ramifications that only become clear after the fact. The issues highlighted in this letter likely serve as the tip of the iceberg.

In conclusion, we emphasize our hope that the potential unintended consequences of such lawsuits — particularly those affecting our nation’s Veterans and underserved communities — will be thoughtfully considered and integrated into the wider conversation on this issue.

Katie Sweeney is Chairman and CEO of the Association of Independent Mortgage Experts (AIME) and Brendan McKay is President of Advocacy at AIME.

This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.

To contact the authors of this story:
Katie Sweeney, Brendan McKay: [email protected]

To contact the editor of this story:
Sarah Wheeler at [email protected]

Source: housingwire.com

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The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

Bankruptcy is a legal process that individuals and businesses can undertake to eliminate their debts under the oversight of a bankruptcy court.

Bankruptcy is a legal process that individuals and businesses can undertake to eliminate all or part of their debts under the oversight of a bankruptcy court. For individuals who have amassed debt beyond what they can reasonably pay, bankruptcy is a potential path toward a clean slate.

There are different types of bankruptcy, important terms to know and significant consequences to watch out for. If you’re wondering, “What is bankruptcy?” or you’re considering it for yourself, read on to get an overview, or you can use the links below to jump to a specific question.

How does bankruptcy work?

Bankruptcy is a complicated legal process that involves several steps:

  • A debtor files a legal petition for bankruptcy in federal bankruptcy court.
  • The court appoints a trustee to oversee the case.
  • The trustee examines the debtor’s assets and liabilities and determines if they have any assets which can be administered by the trustee.

While it’s technically possible to file for bankruptcy on your own, working with a qualified attorney is recommended, as the amount of legal knowledge required is beyond what the average person possesses.

During the creditor’s meeting the trustee will examine the debtor and the case and file a report. What happens next depends on whether you filed for Chapter 7 or Chapter 13. In both cases, your debt can be discharged, but the process for achieving that end varies.

What are the different types of bankruptcy?

For individuals, the two most common forms of bankruptcy are Chapter 7 and Chapter 13. Businesses and local governments can also file for bankruptcy, but we won’t cover those types of bankruptcy in detail in this article.

Chapter 7

Chapter 7 bankruptcy is the most straightforward approach to filing for bankruptcy. Chapter 7 bankruptcy, also called liquidation bankruptcy or fresh start bankruptcy, sometimes involves the sale of assets to pay off debt.  In most cases a debtor’s assets are exempt and no assets need be sold. This is best for debtors who have no way to repay their debt.

When a debtor files for Chapter 7 bankruptcy, the following process takes place:

  1. The debtor provides the trustee with tax returns and other financial documents relevant to the case, plus a list of all their assets.
  2. The trustee evaluates the assets to determine which assets, if any, are nonexempt.
  3. The trustee sells all nonexempt assets to pay off creditors. Debtors can keep exempt property, which varies by state law. For example, in New York, a debtor can keep their car if they own it outright and it is worth $4,000 or less.
  4. The debtor meets with their trustee and creditors at a Meeting of Creditors, also called a 341 Hearing, to verify the information they’ve filed in their bankruptcy petition is accurate.
  5. The trustee might pay some of the debt using the proceeds from liquidating the debtor’s nonexempt assets.  However, this is rare.
  6. Any remaining debt is discharged. However, Chapter 7 does not eliminate all debt—debtors are still responsible for paying court-order alimony and child support, student loans and certain taxes.

The Chapter 7 process typically takes about four to five months from filing to final discharge of debt.

While Chapter 7 bankruptcy has powerful effects on debt, it also has consequences. The negative item from bankruptcy can remain on a credit report for 10 years.

A debtor can only file for this kind of bankruptcy once every eight years. For that reason, a condition of bankruptcy is always credit counseling and personal finance courses, which are aimed at supporting people to prevent them from ending up in the same financial situation again.

Chapter 13

Chapter 13 bankruptcy still leads to debt elimination, but it involves a debt payment plan. In Chapter 13 bankruptcy, debtors keep their property and pay debts over an agreed-upon period, usually three to five years. To qualify, a debtor must prove they have regular income. During the payment period, creditors are legally prohibited from collection efforts against the debtor. This type of bankruptcy is best for debtors who have steady income but still can’t afford to pay their debts in full.

If a debtor files a petition for Chapter 13 bankruptcy, the following will occur:

  1. The court reviews the repayment plan. Typically, repayment plans last three to five years and may repay some or all of the debt owed. The debtor prepares and files the plan and creditors have a chance to comment on it, the trustee comments on it and the court makes a final determination as to whether to approve the plan. 
  2. A court-appointed trustee collects your payments. Over the course of repayment, a trustee will collect funds and disburse them to creditors. 
  3. After repayment, the bankruptcy is discharged. After the specified repayment period, the debtor becomes eligible for a discharge. If the debtor has complied with the trustee’s requests, has paid all required payments and takes a financial management course, then the remaining balance on debt (if any) is forgiven. 

The entire Chapter 13 bankruptcy process can take up to five years from the filing date to the end of repayment.

While Chapter 13 bankruptcy also has detrimental consequences for credit and general financial health, it tends to be less detrimental than Chapter 7 bankruptcy. 

Additionally, Chapter 13 bankruptcy remains on a credit report for just seven years, and the process can be repeated more often if necessary. Having debt discharged or reorganized can be a vital financial tool.

Other types of bankruptcy

While individuals file Chapter 7 and Chapter 13 depending on their circumstances, there are other types of bankruptcy that farmers and fishermen, businesses and city governments can use in difficult financial situations.

Here’s a quick overview of other forms of bankruptcy:

  • Chapter 9 focuses on local governments and school districts that need to restructure debt in the wake of financial troubles. Similarly to Chapter 13, Chapter 9 utilizes a debt repayment plan.
  • Chapter 11 enables businesses to create a debt repayment plan in conjunction with a revised business plan that is aimed at increasing profitability. 
  • Chapter 12 is a narrowly focused form of bankruptcy that is exclusive to family farmers and fishers hoping to avoid liquidation.
  • Chapter 15 is an international provision that helps mediate bankruptcy proceedings that involve the United States and at least one other country. 

While all of these forms of bankruptcy are useful, only Chapter 7, Chapter 11 and Chapter 13 typically directly affect individuals in financial distress.

What does it mean when bankruptcy is discharged?

A bankruptcy discharge means a debtor is no longer personally responsible for certain debts. Regardless of the remaining balance of a previous debt, once a bankruptcy discharge is entered, creditors can no longer collect on the debt.

  • With Chapter 7 bankruptcy, discharge usually occurs after the creditor’s meeting. There is typically a 60-day window after the meeting of creditors for creditors to file complaints, after which the discharge may take effect.
  • With Chapter 13 bankruptcy, discharge typically takes place after the repayment plan is completed.

However, not all debts are eligible for bankruptcy discharge. Depending on the type of bankruptcy filed, the following debts may not be discharged:

  • Alimony
  • Child support
  • Tax liens
  • Some federal, state and local taxes (depending on the age of the debt)
  • Student Loans.
  • Debts for willful and malicious injury to a person or property
  • Debts for death or personal injury caused by the debtor driving while under the influence of alcohol or drugs
  • Any debt not listed in the bankruptcy filing

In general, a discharged bankruptcy is permanent, meaning creditors no longer have any claim to previous debt. In some cases, however, a bankruptcy discharge could be revoked if the party proves to the court that the initial petition was made fraudulently. The time period for taking an action in this way is limited to one year after discharge.

What is the benefit of filing for bankruptcy?

There are advantages to filing for bankruptcy for individuals who can no longer deal with overwhelming debt.

Some of the most important benefits of bankruptcy include:

  • The elimination of many types of debt
  • A fresh start with finances
  • An end to calls and letters from collection agencies
  • Relief from wage garnishment, foreclosure or repossession
  • Protection of certain kinds of property 

Bankruptcy courts exist for a reason, and bankruptcy serves an important financial function for many individuals whose debts significantly exceed their ability to repay. For those who have no other good options, bankruptcy provides important benefits and the chance for relief and a second chance at financial security.

How does bankruptcy affect your credit score?

Bankruptcy has a serious detrimental effect on your credit, though it is possible to rebuild credit after bankruptcy.

The negative item from bankruptcy will remain on your report for seven to ten years, depending on the type of bankruptcy. Any time you apply for credit, that negative item will be visible to creditors, who will factor it in when deciding whether to approve your application.

For those looking to rebuild credit after bankruptcy, a secured credit card is often the best starting point. A secured credit card is backed by a deposit, so creditors are usually willing to provide it even to those who have a bankruptcy on their record. Responsibly using the card and making payments on time can slowly lead to improved credit in the future.

Additionally, many people who have gone through bankruptcy choose to work with a credit repair company, which may be able to support the process of rebuilding credit.

What is bankruptcy fraud?

Bankruptcy fraud occurs when an individual withholds information about debts or assets from the federal bankruptcy court. In both Chapter 7 and Chapter 13 bankruptcy, information about your finances determines how your debt is handled, so providing false or misleading information could lead to a revocation of your bankruptcy discharge or criminal charges.

Here are some examples of bankruptcy fraud:

  • Hiding assets. During bankruptcy, you are forced to disclose all of your assets, which may be sold in order to pay creditors. Withholding information about your assets to try to protect them is not allowed.
  • Running up debt prior to discharge. If you use credit to purchase property or items with no intention of repayment simply because you believe the debt will be discharged, you are likely committing bankruptcy fraud.
  • Falsifying documents. Providing false information about property transfers, debts, assets or any other necessary information is forbidden during bankruptcy proceedings.

The consequences of bankruptcy fraud can be serious, especially if a party proves to the court that your efforts were intended to deceive creditors and prevent them from receiving their just payment. You could be denied a bankruptcy discharge. Fines and even prison time are possible outcomes for bankruptcy fraud, so it’s important to be truthful throughout the entire process.

Bankruptcy terms you should know

A bankruptcy score is used by financial institutions to predict the likelihood that an individual will file for bankruptcy within a certain period of time. Similar to credit scores, bankruptcy scores are calculated using a wide variety of factors. Unlike credit scores, however, bankruptcy scores are not available to consumers, so you can’t know your own score or make efforts to improve it directly.

Still, regardless of your bankruptcy score, the same financial habits that support a strong credit score are also likely to help prevent you from needing to file for bankruptcy:

  • Create and maintain a budget. Spending within your means and prioritizing essential expenses is an excellent way to maintain financial health.
  • Make full and on-time debt payments. Make timely payments for loans and credit cards, and avoid keeping a credit card balance from month to month.
  • Avoid unnecessary lines of credit. While credit is a valuable tool, it’s important to avoid opening too many lines of credit and letting debt become overwhelming. 

Bankruptcy scores are important tools for financial institutions making lending decisions, but they are largely unimportant to consumers. As long as you are making wise financial decisions over time, creditors will continue to recognize your efforts and your risk of bankruptcy will remain low.

Bankruptcy terms you should know

As you navigate bankruptcy, you’ll come across a variety of terms that may be unfamiliar. Understanding all of these terms makes navigating the process of bankruptcy much easier, and fortunately, none of them are difficult to understand.

Here’s a list of terms that you should know if you’re trying to understand bankruptcy better.

  • Assets and liabilities: An asset is anything you own, whereas a liability is anything you owe.
  • Chapter: A chapter is simply the specific type of bankruptcy being declared under Title 11 of the United States Federal Bankruptcy Code.
  • Discharge: A discharge means the associated dischargeable debts no longer need to be paid. 
  • Lien: A lien is a claim against a piece of property from a creditor who is owed a debt, such as a mortgage lender or a car creditor. 
  • Liquidation: Liquidation is the process of selling assets, usually to pay debts—for instance after filing Chapter 7.
  • Means test: The means test is used to determine who is eligible to file for Chapter 7 by accounting for income and debt. 
  • Repayment plan: An approved repayment plan is a court-authorized plan to give creditors back some or all of what they are owed. At the completion of a repayment plan under Chapter 13, remaining dischargeable debt is typically forgiven.
  • Secured and unsecured debt: A secured debt has some sort of valuable property as collateral—for instance, an auto loan is secured by the car itself. An unsecured debt has no associated collateral—for instance, a credit card is unsecured.
  • Trustee: Appointed by the court, the trustee is responsible for reviewing the debtor’s financial situation and documentation relation thereto, conducting the meeting of creditors and collecting and liquidating non-exempt assets or ensuring payments are made according to the repayment plan.

Armed with knowledge of these terms, you’ll have a much greater understanding of bankruptcy moving forward.

What does it cost to file for bankruptcy?

The cost to file bankruptcy can be broken down into two parts: court fees and attorney fees. According to the U.S. Court, you’ll pay a $78 administrative fee and a $15 trustee fee to file for Chapter 7 or Chapter 13 bankruptcy, plus any additional relevant fees. The total filing cost is generally under $500.

If a debtor cannot pay the fees associated with filing for bankruptcy, the court may break the fee payment into up to four installments or waive them altogether. Debtors who wish to have the fee waived must submit Form 103B.  Bankruptcy filing fees are not typically waived, even for the most destitute.

That said, most people will also require an attorney for bankruptcy proceedings, and fees can vary significantly. According to All Law, fees for Chapter 7 typically range from $1,000 to $3,500, whereas fees for Chapter 13 are a bit higher, ranging from $2,500 to $6,000. Depending on your location, fees may be lower or higher, so you’ll want to consult a local lawyer to determine a more accurate cost before proceeding.

Should you declare bankruptcy?

Deciding whether or not to declare bankruptcy can be difficult, so make sure you think about all of the alternatives first. People often consider bankruptcy due to unexpected or overwhelming debt—like a medical bill that has ballooned through interest or a handful of loans that have become unmanageable.

There may be ways to deal with these debts before resorting to bankruptcy. For example:

  • Negotiate with your creditors. Ultimately, creditors are looking for you to repay your debt. By contacting your creditors, you may be able to work out a favorable payment plan or have some of your debt erased in order to make it more manageable. 
  • Get a debt consolidation loan. A debt consolidation loan enables you to simplify and often reduce your debt payments by lowering your interest rate or extending your payment timeline. 
  • Work with a credit counselor. A credit counselor may be able to help you evaluate your entire financial picture and create an action plan to make debt more approachable.

Still, even after these alternatives, there are some people for whom bankruptcy is the best available option. If you have no means to pay back your debts and you’ve exhausted other options, contact a bankruptcy attorney to determine your best next steps.

Overall, bankruptcy exists to protect individuals from long-term financial ruin. Though the credit consequences of bankruptcy are long-lasting, the benefits of freedom from debt are absolutely essential in some cases.

Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.

Reviewed By

Vince R. Mayr

Supervising Attorney of Bankruptcies

Vince has considerable expertise in the field of bankruptcy law.

He has represented clients in more than 3,000 bankruptcy matters under chapters 7, 11, 12, and 13 of the U.S. Bankruptcy Code. Vince earned his Bachelor of Science Degree in Government from the University of Maryland. His Masters of Public Administration degree was earned from Golden Gate University School of Public Administration. His Juris Doctor was earned at Golden Gate University School of Law, San Francisco, California. Vince is licensed to practice law in Arizona, Nevada, and Colorado. He is located in the Phoenix office.

Source: lexingtonlaw.com

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The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

There isn’t a specific debt threshold you must meet to file for Chapter 7 bankruptcy, but you must meet certain criteria to qualify for it under the means test, which may consider income from the last six months and compares to the median income in your county for your family size.

The world of personal finances can be difficult to navigate, and unexpected events occasionally result in stressful debt. Sometimes people consider declaring Chapter 7 bankruptcy as a way to get some relief from their debts. Chapter 7 is a legal process that can provide a fresh start by discharging certain debts, but it’s essential to understand the requirements and implications.

How much do you have to be in debt to file Chapter 7? Since everyone’s financial history and situation varies, there is no absolute amount required to file Chapter 7—but there are criteria.

In this guide, we’ll cover the factors that determine eligibility for Chapter 7 bankruptcy as well as the benefits of filing, things to consider before you file, alternatives to filing and tips to help you avoid bankruptcy.

Table of contents:

  • Signs that filing for bankruptcy could be an option
  • How to know if you’re eligible for Chapter 7
  • Benefits of Chapter 7
  • Things to consider before filing Chapter 7
  • Chapter 7 alternatives
  • 7 tips to avoid Chapter 7 

Signs that filing for bankruptcy could be an option

Filing for bankruptcy is a significant and complex decision that you should base on careful consideration of your financial situation and options. Here are signs that you may be eligible for Chapter 7:

  • You’re dealing with an overwhelming amount of debt.
  • Bill and loan payments are being missed consistently.  
  • Creditors are threatening to take legal action, wage garnishment, foreclosure or repossession of your assets.
  • You’re facing lawsuits due to unpaid debts.
  • Emergency funds and savings have been depleted.
  • You’re at risk of losing essential items such as your home or car.

How to know if you’re eligible for Chapter 7 

Even though there’s no debt threshold for filing for Chapter 7, there are still other criteria that need to be met to determine if you’re eligible. Here are some key qualifications you likely need to meet:

  • You are filing as a person, a partnership, a corporation or other business entity.
  • You haven’t been discharged from bankruptcy in the previous eight years.
  • You have received credit counseling through the court within the last six months.
  • You’ve taken and passed the means test, or you have an exemption from the test.

Learn more about the Chapter 7 means test below.

Chapter 7 means test 

During the Chapter 7 means test, your average monthly income over the previous six months is compared to the median income in your county. This test is a crucial factor in determining your eligibility—the court will essentially compare your financial situation to other similar-sized households in your area.

Typically, someone can qualify for Chapter 7 if their income is lower than the state median. If your income is above the median in your state, there are further calculations to determine whether or not you have enough money to pay off your bills under a Chapter 13 repayment plan.

Note: You’ll want to work with an experienced bankruptcy attorney to ensure accurate calculations and proper application of the test to your specific financial situation.

Benefits of Chapter 7

Chapter 7 offers several benefits to individuals overwhelmed by debt and seeking a fresh financial start. Here are some of the key benefits of Chapter 7 bankruptcy:

Potential debt discharge

The primary advantage of Chapter 7 is the potential bankruptcy discharge of most unsecured debts, such as:

  • Debt from your credit cards
  • Bills from medical-related expenses
  • Personal loans

Now that the bankruptcy process is complete, the debtor is no longer legally obligated to repay those discharged debts.

Avoid a lengthy process

In general, the Chapter 7 bankruptcy process is faster than the Chapter 13 bankruptcy process. Filing time for Chapter 7 usually takes around four to five months from the filing of the bankruptcy petition to the discharge of eligible debts.

Obtain automatic stay

An automatic stay is put into place after someone files for Chapter 7 bankruptcy. This action immediately puts a stop to all creditor collection actions, including:

  • Foreclosure
  • Wage garnishment
  • Repossession
  • Creditor harassment

Get a fresh start

Chapter 7 bankruptcy provides a clean slate for individuals that are having a hard time keeping up with payments. Once eligible debts are discharged, debtors can work on rebuilding their finances without the burden of old debts.

Relief from unmanageable debt

Chapter 7 bankruptcy is ideal for individuals with little or no disposable income to make regular payments under a Chapter 13 repayment plan. It’s designed to provide relief for those facing severe financial hardship.

Receive financial education

Those filing for Chapter 7 must attend credit counseling before they file and a financial management course before receiving a discharge. These courses can provide valuable financial education and help debtors make more informed decisions in the future.

Things to consider before filing Chapter 7 

Filing for Chapter 7 bankruptcy is a big financial decision that could have long-term implications. Explore everything you should consider before filing Chapter 7 below.

Financial and employment situation 

Evaluate the severity of your financial distress and employment situation. The best candidates for Chapter 7 bankruptcy are often those with excessive unsecured debt and little disposable income to make payments.

Having a hard time keeping up with payments due to unemployment can make you more eligible for Chapter 7 bankruptcy. However, if you’re still struggling to pay your bills while employed, filing for Chapter 7 may help you keep your assets, such as your house and car, by eliminating or decreasing payments on:

  • Credit cards
  • Medical bills
  • Unsecured debts

Court costs 

It’s important to factor in the costs to file for bankruptcy, including attorney fees and court filing fees. A court filing fee for a new petition costs around $338. While it might seem like an additional expense, an experienced attorney can help you navigate the process effectively.

Credit impact 

Be aware that filing for Chapter 7 bankruptcy could impact your credit negatively. There’s a chance it will stay on your credit report for up to ten years. However, if your credit is already damaged due to missed payments, the impact might not be as drastic.

Consult with a qualified bankruptcy attorney to discuss your specific financial situation. An attorney can help you consider your options, navigate through the process and make the most informed decision possible. Plus, you could get valuable information about your case that you wouldn’t have thought of otherwise.

Chapter 7 alternatives

Consider investigating other possibilities to resolve your financial troubles before filing for Chapter 7 bankruptcy. Here are several alternatives to Chapter 7 bankruptcy:

Chapter 13 bankruptcy

Chapter 13 is an option for individuals with regular income to restructure their debts. It entails developing a repayment strategy that can last up to five years to progressively repay creditors.

This provides protection from creditor actions like foreclosure and repossession. It  allows debtors to catch up on missed payments while keeping their assets. Compared to Chapter 7, Chapter 13 may be a better option if you’re employed and still able to pay down debt but need an extra boost to pay it down. 

Debt negotiation and settlement

You might be able to negotiate a lower settlement price for your debts by speaking with your creditors directly or with the assistance of a debt settlement firm. This can lead to reduced payments but could also lead to negative consequences for your credit.

Debt consolidation loan

Taking out a debt consolidation loan to pay off multiple debts can simplify payments and potentially lower interest rates. However, it’s important to be cautious about converting unsecured debt into secured debt (like a home equity loan) that could put your assets at risk.

7 tips to avoid Chapter 7 

Avoiding Chapter 7 bankruptcy requires proactive financial management and strategic decision-making. Here are some tips that might help you steer clear of the need to file for bankruptcy:

  1. Create a budget: Prioritize making a budget for your finances to help lower your risk of debt. Tracking your expenses can be a great way to see areas where you can cut back and use the extra money to pay back debts.
  2. Pay off debt first: Paying down your debt amount should be the first priority. Consider using the debt avalanche method to speed up the debt repayment process.
  3. Negotiate with your creditors: If you’re having trouble making payments, contact your creditor to see if you can work out a better deal. They might be open to lowering interest rates, cutting monthly payments or establishing a repayment schedule.
  4. Start an emergency fund: An emergency fund helps provide padding for you if you are stuck with surprise expenses, which can help you avoid using credit cards or loans.
  5. Start selling: Sell items you no longer need for extra cash to pay down your debt. Plus, you can clear out clutter in the process.
  6. Get a side hustle: Consider finding another source of income, like a side hustle or a second job.
  7. Ask for help: Connect with a financial advisor or credit counselor—they can provide personalized guidance and create a plan tailored to your circumstances.

If you think you may be facing bankruptcy, you may also want to start taking a look at your credit. In this case, consider working with the credit repair team at Lexington Law Firm. They can work with you to address inaccurate items listed on your credit reports, so you can focus on building healthy money habits in the long run. You can also get a credit snapshot that gives you your credit score, credit report summary and repair recommendations for free. 

Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.

Reviewed By

Vince R. Mayr

Supervising Attorney of Bankruptcies

Vince has considerable expertise in the field of bankruptcy law.

He has represented clients in more than 3,000 bankruptcy matters under chapters 7, 11, 12, and 13 of the U.S. Bankruptcy Code. Vince earned his Bachelor of Science Degree in Government from the University of Maryland. His Masters of Public Administration degree was earned from Golden Gate University School of Public Administration. His Juris Doctor was earned at Golden Gate University School of Law, San Francisco, California. Vince is licensed to practice law in Arizona, Nevada, and Colorado. He is located in the Phoenix office.

Source: lexingtonlaw.com

Apache is functioning normally

Whether you’re a first-time homebuyer or a seasoned homeowner, there’s no denying that purchasing a home is a huge financial decision.

You’ll likely have to make a down payment and commit to a monthly mortgage payment for 30 years (unless you decide to sell before then). Even so, the obligation should not be taken lightly.

Just from preparing to buy a home, you know that your credit score is an incredibly important number. It determines your eligibility for a home loan, and also plays a major role in determining your interest rate.

The higher your credit score is, the lower your interest rate will be, which can really affect your monthly payment. Hopefully, yours is in top shape when it’s time to buy. However, it’s also important to consider what happens to your credit score after you actually purchase your home.

You might be surprised to find out that buying a home has both positive and negative impacts on your credit scores. Read on to find out exactly what to expect of your credit score when you get a mortgage. We’ll also teach you how to minimize any potential damage that could occur.

How Applying for a Mortgage Affects Your Credit Score

It’s smart to shop around for interest rates from different lenders when you’re looking for a mortgage. Interest rates can vary greatly depending on the lending company and the type of mortgage loan they offer you. However, it’s essential to employ the proper strategy when comparing those offers.

That’s because each time you apply for new credit, whether it’s a mortgage, auto loan, or credit card, a credit inquiry appears on your report. Your credit score drops anywhere between five and ten points.

Unfortunately, if you have an excessive number of credit inquiries, mortgage lenders may think you’re desperate for cash and be reluctant to lend to you. The dip in your credit score reflects this potential risk.

The Benefits of Mortgage Pre-Approval on Credit

So, how can you mitigate this issue when shopping for a mortgage? First, limit the number of lenders you apply to. You can also ask for a pre-approval to find out what interest rates you’d be eligible for. The difference is that there is not a hard credit check performed. Instead, the mortgage lender only does a soft pull, which doesn’t have any effect at all.

You’ll still have to go through the formal application (and hard credit pull) once you decide on a mortgage loan. However, the preapproval process gives you the opportunity to compare offers without any type of commitment.

Multiple Credit Inquiries for the Same Type of Loan

Another way to protect your credit scores from too many inquiries is to limit your loan search to two weeks. When evaluating your credit history, credit reporting agencies realize that consumers want to shop around for different rates to get the best loan. So, if you have several of the same types of inquiries listed in a two-week span, they’ll only be counted as a single inquiry.

Mark your calendar with the first date of your loan application so you can track how long your search has lasted. This will help you keep your credit scores intact. Plus, you’ll also keep yourself on schedule for getting your mortgage in order.

The Effect of Mortgage Debt on Your Financial Profile

Your credit score could also take a hit because of the amount of mortgage debt you have, especially if this is your first time owning a home. Luckily, there is a good side and a bad side to this.

Let’s start with the negative. Since a home costs so much, your level of debt is going to skyrocket. This is true, especially if you’re a first-time homebuyer or someone who just upgraded to a more expensive home.

Think about it: Say your previous levels of debt included a small credit card balance, a student loan, and a car payment, and that came to about $65,000 in debt. If you buy a $200,000 house, you’re nearly quadrupling your level of debt.

Yes, you were approved for the home loan and can afford the monthly mortgage payments. However, that is still a significant number to be added to your credit reports, and your credit history will reflect this change. It’s not going to plummet by any means, but you will notice a decrease.

How Your Mortgage Affects Debt-to-Income Ratios

Another way your new mortgage can influence your access to credit is through your debt-to-income ratio. This isn’t part of your credit score, but it is part of how future lenders analyze your application for credit. Basically, your DTI is how much monthly debt payments you owe versus how much money you earn each month.

Rent isn’t included in your DTI, but mortgages are. So, the next time you go to apply for a car loan or refinance your mortgage, you’ll have to consider how much overall debt you pay each month compared to your pre-tax earnings.

The Positive Impact of Timely Mortgage Payments on Credit

Now let’s get into the positive effects that buying a home can have on your credit score. The first impact is that your credit mix becomes more varied.

This category actually accounts for 10% of your credit score. Therefore, having an installment loan like a mortgage helps more than just having revolving credit like a credit card. 10% may not seem like a lot, but it can help offset some damage caused by the negative side of purchasing a home.

The most important thing you can do to increase your credit score is to pay all of your bills on time. And having a mortgage is a great way to add positive history to your credit report. That’s because while most creditors report negative payments to the three major credit bureaus, many don’t actually report positive payments. So, you’re penalized for negative behavior, but sadly, not rewarded for good behavior.

Mortgage payments, on the other hand, are regularly reported to each of the three credit bureaus: Equifax, Experian, and TransUnion. And since 35% of your credit score is determined by your payment history, on-time payments each month can make a significant difference.

Strategies to Maintain a Strong Credit Score After Buying a Home

Even after you’ve purchased your home, it’s still essential to keep your credit scores in top shape. You never know when you’ll need credit again, and you’ll want to ensure you have access to the best rates. Even if you’re not planning to use new credit for a car loan or personal loan.

You may want to refinance your mortgage in a few years to get a better interest rate, cash out some equity, or take off your mortgage insurance. To do any of those things, you’ll continue to need a strong credit history. Follow these tips to ensure your credit score stays where you want it to be.

#1: Monitor your credit report annually.

You can get free copies of your credit reports each year from AnnualCreditReport.com. This is helpful in several ways. First, it allows you to check to make sure all of your personal and financial information is listed accurately.

More importantly, however, is that it allows you to detect whether someone has fraudulently opened up any type of credit account in your name. Identity theft is a growing concern. Staying on top of your credit history keeps your identity and your finances safe.

#2: Continue to make your payments on time.

It’s vital to your credit history to make timely payments. Even one 30-day late payment can stay on your credit report for years, causing a major drop in your credit score. And the consequences just get worse as the delinquency ages to 60 and 90 days.

It’s easy to get swept away by all the new excitement and responsibilities that come with a new house. Just be sure to keep up with your other financial obligations during that time.

#3: Keep your debt low.

Since you just added a large new mortgage to your credit report, it’s wise to keep your other debts as low as possible, particularly your credit card balances. Try not to exceed 30% of your available balance on any of your cards. If you do, your credit score is likely to fall. Instead, try to spread out your balances across cards while you work on paying them off.

Buying a house does indeed impact your credit score. However, the impact is not so dramatic that buying a house isn’t worth it. After all, the purpose of the credit score itself is to help prove your creditworthiness to lenders so you can borrow money when the need arises.

As long as you can afford your monthly payments, purchasing a house could very well be a wise investment. It allows you to put down roots while growing equity in your home.

Bottom Line

Purchasing a home is a significant financial milestone that can affect your credit in various ways. While it might initially lower your credit score due to inquiries and increased debt levels, it also offers an opportunity to build and improve your credit over time through regular mortgage payments.

The key is to manage your debt-to-income ratio effectively and to maintain good credit habits. This includes monitoring your credit report, keeping debt levels under control, and ensuring timely payments. By doing so, you can enjoy the benefits of homeownership while nurturing a strong financial standing.

In summary, buying a house is more than acquiring property; it’s a strategic step in building a secure financial future. With thoughtful management, the journey to homeownership can enhance your credit profile and open doors to future financial opportunities.

Source: crediful.com

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“This case has now been pending for more than four and a half years, and we’re ready to move forward and towards trial,” he said on the call.

Ethan Glass of Cooley, an attorney for the National Association of Realtors (NAR), took a different view and urged Wood to not set a date just yet, stating that it is “way premature” as the court has yet to even take motions for summary judgment, “let alone decide them.”

Glass also asked if NAR could let the court know in a week or so if the trade group would like the court to extend its Dec. 19, 2023, deadline for submitting things like motions for summary judgment.

“We are still analyzing what the consequences of the [Sitzer/Burnett] jury verdict are,” Glass said.

A final ruling on the Sitzer/Burnett suit is not expected until April or May 2024, however, the plaintiff’s motion for injunctive relief must be filed before Jan. 8, 2024. The three defendants who were present at the trial, NAR, Keller Williams and HomeServices of America, have all vowed to appeal the verdict.

Glass added that NAR is unsure if there may or may not be reasons to extend the deadline, as the trade group and its counsel are still looking into things.

Braun argued that legal issues still playing out in the Sitzer/Burnett suit was not a reason to delay the trial in the Moehrl case.

Surprisingly, this view was supported by Timothy Ray of Holland & Knight, who is representing Keller Williams. Ray stated that he believes there were “serious errors” in the Sitzer/Burnett trial and that that trial should not be held up as a “standard for how we should go forward in Moehrl.” He added that Keller Williams would like to see the “Moehrl case to stand on its own consistent with the law” in its district and circuit.

Wood agreed with Ray’s view, stating: “I don’t think the fact that the other case has proceeded to trial and there are certain legal issues that will be challenged post-trial … affects what I need to do to keep the case moving here. It is a different case with some different issues, some overlapping issues, in a different circuit. So, I tend to agree with Mr. Ray’s point that this case should stand on its own.”

Looking ahead, Wood said she thought setting a trial date as soon as “it’s reasonable to do so makes sense.”

In the meantime, the parties have until Jan. 22, 2024, to submit a joint state report, in which they are to estimate the number of trial days and testimony hours they anticipate needing. Wood also instructed that the parties should take into account that Anywhere and RE/MAX are unlikely to participate in the trial if their settlements receive final court approval.

Filed in 2019, the Moehrl lawsuit, like the other commission lawsuits, take’s aim at NAR’s Participation Rule, which requires listing brokers to make a blanket offer of compensation to buyers’ brokers in order to list a property on the MLS.

The home seller plaintiffs allege that NAR and the corporate brokerage defendants have conspired to artificially inflate agent commissions, increasing the costs shouldered by home sellers. The suit received class-action status in March 2023.

Source: housingwire.com

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The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

Ignoring a collection agency can negatively impact your credit, cause your debt to accrue interest and potentially result in a lawsuit. It’s ultimately better to pay or dispute a debt than avoid debt collection agencies altogether.

While it may be tempting to simply ignore debt collectors, that is generally a poor long-term strategy. Several potential consequences of not paying a collection agency include negative changes to your credit, continuing interest charges and even lawsuits. Even if you can’t pay the debt in full, it’s often best to work with the collection agency to establish a payment plan.

Collection agencies are unlikely to give up on a debt, especially if you owe a substantial amount. The stress of having a debt sent to collections can be tremendous, but waiting out a collection agency and hoping the problem goes away isn’t a viable option.

Read on to learn more about four possible consequences of not paying your debt—and at the end of the article, we’ll offer some strategies for dealing with debt collectors.

1. Interest charges

Even after your debt goes to collections, interest charges can continue to accrue. According to the Fair Debt Collection Practices Act (FDCPA), the collection agency can also charge any fees or interest rates outlined in your original contract—like the interest rate of a loan.

The collection agency cannot raise your interest rate or add new fees, but it may choose to continue generating interest or charge late fees if they were part of the original agreement. That means ignoring the debt collector doesn’t just fail to make your debt go away—in fact, the amount you owe may continue to grow.

2. Credit effects

Having an account sent to collections will lead to a derogatory mark on your credit report. Unfortunately, the mark will likely stay on your credit report for up to seven years even if you pay off your debt with the collection agency. It’s also possible that paying off your collection account may not improve your credit.

Nevertheless, paying off a collection account could help your credit situation in several ways:

  • The account will be shown as “paid in full” or “settled.” When future creditors look at your report, a collection account that was paid in full sends a more positive signal than an unpaid debt.
  • Updated scoring models, like the FICO® Score 10 Suite, may regard paid collection accounts differently. Changes to the way FICO calculates credit scores may mean that collection accounts paid in full won’t affect your credit
  • Sticking to a payment plan could help establish good credit habits. As you work to pay off your debts, you’ll establish positive credit behaviors and work to fix your credit over time.

While you may not see an immediate improvement to your credit after paying off a collection account, it’s an excellent first step toward creating a more positive credit history for yourself. Over time, the impact of a collection account on your credit will start to decrease, which means that your new credit habits—paying on time each month and keeping utilization low, for instance—will start to have a strong effect.

3. Collector communications

Collection agencies will continue to try to reach out to you unless you pay your debt, particularly if you owe a significant amount. Collectors can contact you by phone, mail, fax, or email from 8 a.m. to 9 p.m. Additionally, they are allowed to contact your friends and family to try to locate you—so simply avoiding their phone calls is not a viable strategy.

Also, it’s important to know that collection agencies can continue to reach out to you as long as it is still within the statute of limitations. The statute of limitations, or how long your debt is considered valid, varies based on the type of debt and your state. That said, since the longest statute of limitations can be upward of 10 years, some collectors could call you long after the seven-year mark, which is when the collection account clears from your credit report.

According to federal debt collection laws, you do have the right to request in writing that agencies stop contacting you. If they don’t stop contacting you, the Consumer Credit Protection Act lets you file a complaint with the Consumer Financial Protection Bureau.

However, asking a collection agency to stop contacting you doesn’t mean the debt goes away. If you continue to ignore the debt, the collection agency may file a lawsuit.

4. Lawsuits

If a collection agency intends to get paid for your debt, it may decide to initiate a lawsuit against you. After the collection agency files the lawsuit with the state, you’ll receive a copy and a summons to appear in court.

You’ll want to consult with an attorney immediately, as failing to appear in court will mean you lose by default. In that case, the judge could award the collection agency the ability to do the following:

  • Place a lien on your property, which can be a mark on your public record.
  • Garnish your wages, which means your employer may give part of your paycheck to the collection agency before you receive it.
  • Freeze some or all of the funds in your bank accounts.

If you do receive a court summons, work with a qualified lawyer to help build a case, which will hopefully lead to a settlement with the collection agency.

Can bankruptcy help me deal with a debt collection agency?

Bankruptcy is a legal process that can help businesses and individuals eliminate their debts and stave off collection agencies. There are multiple types of bankruptcy plans (called Chapters) that each come with several drawbacks. Bankruptcy can also drastically hurt your credit and stay on your report for 10 years, so it’s ultimately considered a last resort.

Chapter 7 bankruptcy

Credit card debts, medical bills and personal loans can all be eliminated by Chapter 7 bankruptcy. This process usually occurs over three to four months and is overseen by a federal bankruptcy court. The court then issues an automatic stay and assigns a trustee to your case.

The trustee will then appraise your possessions and liquidate assets to help reduce your debt.

Chapter 13 bankruptcy

Chapter 13 bankruptcy covers many of the same debts covered by Chapter 7 bankruptcy. Here, filers work with bankruptcy courts and attorneys to create a repayment plan. After three to five years of routine payments, a filer’s bankruptcy will eventually be discharged. Chapter 13 doesn’t seek to liquidate your assets, so you ideally won’t have to sell your valuables.

It’s possible to avoid filing for bankruptcy altogether, which requires making a plan to deal with debt collectors rather than ignoring them.

Strategies to deal with debt collectors

Although it can be overwhelming to receive communication from a debt collector, you can formulate a plan to deal with debt collectors to improve your finances. With the right approach, you’ll be able to slowly fix your credit and get back on track.

Use the following approach to begin dealing with the collection agency:

  • Set up a payment plan with the debt collector, or see if you can reach a debt settlement for a smaller amount of money.
  • Start practicing good financial habits by keeping your credit utilization low, making payments every month and only spending what you can afford. Members of the “800 club,” Americans with credit scores of 800 or higher, often have great financial habits that you can take inspiration from.
  • If the debt is not yours or has already been paid, you can start the dispute process and potentially get the collection mark removed from your credit report.

Over time, you can rebuild your credit and pay your debts. However, if the debt is illegitimate or misreported, you should immediately challenge it. To help with that process, consider working with the credit repair consultants at Lexington Law Firm, who can assist with credit repair and address negative items on your credit report.

Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.

Reviewed By

Paola Bergauer

Associate Attorney

Paola Bergauer was born in San Jose, California then moved with her family to Hawaii and later Arizona.

In 2012 she earned a Bachelor’s degree in both Psychology and Political Science. In 2014 she graduated from Arizona Summit Law School earning her Juris Doctor. During law school, she had the opportunity to participate in externships where she was able to assist in the representation of clients who were pleading asylum in front of Immigration Court. Paola was also a senior staff editor in her law school’s Law Review. Prior to joining Lexington Law, Paola has worked in Immigration, Criminal Defense, and Personal Injury. Paola is licensed to practice in Arizona and is an Associate Attorney in the Phoenix office.

Source: lexingtonlaw.com

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Have you ever noticed that certain people take up a new hobby, and suddenly that’s all they’ll talk about? It’s not that their personalities are actually changing, but they’re certainly adapting to the situation at hand, and maybe getting a little hyper-focused or narrow-minded about it. We’ve asked our friends on Reddit to chime in on the most common hobbies or life-changes that people adopt, and then won’t shut up about. 

1. Being a Military Wife

Photo Credit: Shutterstock.

One user shared, “Wives of military men.”

Another user added, “You know they post about how brave their ‘hubby’ is daily.”

One commenter replied, “I hate the word ‘hubby’.” 

Another Redditor commented, “Can confirm. Have a cousin like this. The husband is nowhere near seeing any kind of combat. She was stationed overseas in Germany for a couple of years, and she would never leave base to do anything but loved to complain about how bored she was. [She] had zero interest in taking in anything related to German culture, food, sightseeing, etc. She was also pregnant at one point. They were stationed there and insisted US hospitals were superior to German ones. She Said she was scared to have the baby in a German hospital because the US ones were better. You would’ve thought she was in a third-world country the way she went on about Germany and how scared she was to be there. Apparently, her friends on base were also all just like this.”

2. Obsessing Over Great Britain

Photo Credit: Shutterstock.

“My Texas high school had a British club. I’m actually a British citizen, so I tried to join. Those people were nuts. They made Doctor Who and Sherlock their whole personalities,” one user posted.

Another user commented, “This is just the BBC version of the anime club.”

One commenter replied, “On Tumblr, they were called Teaboos sometimes.”

Another Redditor posted, “When I watched the BBC version of Sherlock for the first time as a teenager, I realized with horror that my brother had based his entire personality on it. He had the same coat, the same condescending and sardonic manner, everything. The only thing he couldn’t get right was the actual genius part, so he’d mutter very intensely about subjects not deserving of that intensity and confuse everyone. He’s actually still quite difficult to have a conversation with because he has no idea how to learn things from other people—it always has to be him explaining things to you and not the other way around. Otherwise, he’ll just walk away.”

3. Being in a Relationship

Image Credit: Shutterstock.

One Redditor shared, “Relationships. I have friends who legit have no clue who they are without a man by their side. Their self-worth is measured strictly by the ‘quality’ of the guy willing to stand beside them.”

One user replied, “This is painfully accurate. My sister graduated med school, but my mom didn’t tell her she was proud until she brought home a bf.”

One added, “My mom was the same. It didn’t matter what I did. She only ‘stopped worrying’ when I got engaged (to a complete bad person who I would never have looked twice at if he hadn’t swooped in during a very low point, including my mother’s terminal illness). God, I’d love to go back in time for a do-over on all of that.”

4. Refusing to Change

Photo Credit: Shutterstock.

“Being a bad person. You meet a lot of people who are like, ‘Sorry, I’m an a-. It’s just who I am’,” one user posted.

Another added, “‘I tell it like it is.’ No, you’re just tactless and have no awareness.”

However, one user replied, “As someone who was like this who did a lot of self-reflection about why I was popular and when you’re popular, people laugh at you for being a bad person sometimes, and it feels good, if enough people validate it growing up without any social consequences, you learn to think it’s fine. At most, someone will go, ‘Haha, omg, you’re such an a-‘ and roll their eyes. Eventually, you get away from the group of people who accepted your a–h-lery and made you believe it was funny and go out in the world. Being a grown a- isn’t cute, so you either lean in and think everyone is just getting too sensitive, or you realize that you have to do more than just be a bad person to get people to laugh and like you.”

5. Watching Anime

Photo Credit: Shutterstock.

One online user shared, “Anime. I like it, but many people take it to a new level.”

Another user commented, “I knew a woman like that. She lives in cosplay, and her kids are named after anime characters. Edit: Forgot to add that she says ‘Hello, minna-san!’ all the time.”

One Redditor added, “Yeah, tbh. I’m a mega-fan, but there’s a fine line where sharing what you love drifts into projecting it everywhere. The opposite is true where your passion is censored because it’s not ‘in vogue’ or breaks normalcy, so it’s a very fine line. Don’t name your kids ‘Gendo Ikari’.”

6. Smoking

Photo Credit: Shutterstock.

“Smoking weed,” one user shared.

Another confirmed, “Hear hear. I smoke quite a lot myself, but I absolutely can’t stand stereotypical potheads.”

One commenter added, “Same. I’m the biggest stoner I know and people are always shocked to find out even after knowing me for months.”

Another user replied, “Most of my friends smoke. I’m down to one oddball that still wants to talk about terpenes, and how well this batch was cured or not, and the subtle hints of flavor that always make him assume the strain is something different than advertised. At least that only lasts 20 mins, and then we can talk about all the movies/music/shows that were so much better in our day (we’re 40).”

7. Loving Astrology

Photo Credit: Shutterstock.

One user posted, “Zodiac signs.”

Another replied, “‘I’m a Virgo.’ ‘No, Kelly, you are just a [terrible person]’.”

8. Acting

Photo Credit: Shutterstock.

“Theater,” one user posted.

Another user replied, “As somebody who does his theatre, I can confirm it’s frustrating and annoying.”

9. Being a Writer

Photo Credit: Shutterstock.

One user shared, “Being a writer—even if they barely ever write.”

Another user replied, “‘I’m working on some plot holes, okay? So what if I haven’t touched my book in, like, three weeks?’… shut up…”

“I mean, three weeks can just be a healthy break from an activity!” one Redditor added.

One commenter added, “‘Oh, I know it hurts now, but look at the bright side: You have some new material for that novel you’ve been writing. You know…the novel you’ve been workin’ on? You know the one, uh, you’ve been workin’ on for three years? You know, the novel. You got somethin’ new to write about now. You know? Maybe a main character gets into a relationship and suffers a little heartbreak? Somethin’ like what… what you’ve just been through? Draw from the real-life experience? Little, little heartbreak? You know? Work it into the story? Make the characters a little more three-dimensional. Little, uh, richer experience for the reader? Do those two hundred pages really keep the reader guessing what will happen? Some twists and turns? A little epilogue? Everybody learns that the hero’s journey isn’t always a happy one. Oh, I look forward to reading it.’—Stewie Griffin.”

10. Using Propane

Photo Credit: Shutterstock.

One user commented, “Propane and propane accessories.”

A user added, “I tell you what.”

11. Doing Crossfit

Photo Credit: Shutterstock.

“CrossFit,” one user shared.

Another added, “The first rule of CrossFit is, you must always talk about CrossFit…”

One commenter replied, “I know a couple that loves CrossFit. They’ve never done it personally, but they are physical therapists, and the injuries from people emphasizing rep numbers over form has been great for their bottom line.”

12. Being a Hipster

Image Credit: Shutterstock.

“You’ll never meet a group of more infuriating w-nkers than when you meet the people who are really into the local indie music scene…” one user posted.

Another user replied, “Amen. However, as a reformed local indie rocker, I can confidently say that the worst offenders in this category were rarely the musicians themselves. I, for one, always forgot everyone’s names and proudly told them it was because I was just terrible at being a hipster…….. OH S- F-. IM RELAPSING. HELP!”

13. Loving the Office

Photo Credit: Shutterstock.

One user commented, “The Office!”

Another Redditor added, “Also friends.”

One commenter replied, “Which friend character are you? Which friend’s character are you? Which friend’s character are you?”

14. Owning a Tesla

Photo Credit: Shutterstock.

“Owning a Tesla,” one user shared.

Another added, “The only thing worse than a Tesla owner is a Jeep owner.”

One Redditor said, “Some Jeep owners, yeah. I’m on my fourth one. And I have loved them all. They’ve all been stock Cherokees except my current one. An 06 GRAND Cherokee. Oh yeah, baby. It’s got a headphone jack in the dash so I can plug my phone in, f—ing plush up in that b–ch. Got four cup holders, too. And keep your underwear on. It’s got a coolant leak as well.”

15. Declaring Your Sexuality

Photo Credit: Shutterstock.

One user commented, “I’m sure I’m gonna get a lot of hate but sexuality. Being straight or being gay is not a personality trait. It’s just one aspect of who you are.”

Another replied, “Imma upvote you now before the haters show up.”

One user added, “I hard agree, but I also try to understand that some people have been denied what they are for so long that when given the chance, they’ll go all out. Like, I’m gay and dating a trans dude. But I’ve never felt persecuted for my sexuality. He has. I’d never tell him to stop waving his flags because I know he’s been in a place where he wasn’t allowed to. *Oh. They got gold for this take. Well, that’s… Worrying”

16. Being Sarcastic

Photo Credit: Shutterstock.

One Redditor posted, “Sarcasm.”

Another added, “I hate this. People think ‘sarcasm’ makes them come off as interesting and intelligent, but a lot of it is just low-hanging fruit jabs or just being d–chy.”

17. Loving Disney

Photo Credit:

One user commented, “Disney.”

Another added, “I’m a physician. I had a senior while doing a year of general surgery training. My senior wanted to do trauma surgery. He was petty, mean, brilliantly smart, and a complete a-h- to anybody as or less intelligent:

“The precise moment that he would show a half second of relaxation: DISNEY TO THE TENTH EXPONENT. Writing notes: Disney theme park background music. Packed Lunch: Disney-themed pasta/sandwich combos. Going out for social hour: Disney watch/scarf.

“I always wondered how this dude could look at me so vehemently and still have such a cotton Candy, whimsical core. Great doctor and surgeon, though.”

One commenter replied, “Disney adults are strange people, man. My wife is a physician, and her other physician friend is getting married this spring. She’s a bit younger than us (4-5 years) and has had the luxury of making a physician’s salary while having very little in the way of actual life expenses due to having parents who continue to pay her bills for her.

“Anyway, she tells my wife and their friend group that she’s engaged and the wedding will be in Iceland. We’re pumped because we’ve always wanted to go to Iceland, and we’re fortunate enough to be able to afford to go to the wedding if we save up. It’s a year from now, so we have time to save up and also make it like a mini vacation. So a few weeks later, she texts her friend group that Iceland is off, and they’re getting married at Disney World.

“I’ll be honest: that was a head-scratcher for my wife because none of her friends knew she was that into Disney. We think it will be at one of the resort hotels around Disney World, with some pretty cool/nice hotels. Oh no, no, no. They are getting married in front of the castle in Magic Kingdom—and here’s the best part—it can’t be during park hours, so they were given the option of it happening at 8 am or 10 pm. They chose 8 am. Might I mention they are also paying $60,000 just for the ceremony?

“I get that having a destination wedding in another country is cost-prohibitive if you want a lot of friends and family there. Iceland would have been very cool, and, for admittedly selfish reasons, we were a little bummed about it not being there. But it’s understandable.

“However, with every new detail my wife gets from the bride-to-be, it seems like it will be a pretty terrible experience. Having to pay for an overpriced hotel and getting up at the crack of dawn to get dressed up and stand in the swampy humidity of Florida so two grown adults can be married by Mickey Mouse sounds like it’s going to be a total bad show. So yeah, Disney adults are strange.”

18. Breaking Up

Photo Credit: Shutterstock.

One user posted, “One bad breakup…”

Another user replied, “This is true. I had a friend who would not care about a girl she dated back before COVID (f—ing 2020) who did some a- [things] to her up until a few months ago. At least now she’s dating again, so we constantly hear about her new partner most of the time…”

19. Working

Photo Credit: Shutterstock.

“Their occupation,” one user shared.

Another user replied, “‘I’m a nurse. What’s your superpower…’ merch. yuck. Sincerely, a nurse.”

One Redditor said, “This was my first thought. I hate those ridiculous things! I work with a nurse with multiple nursing-related tattoos, coffee cups, handbags, and a license plate frame. So cringe.”

20. Owning Guns

Photo Credit: Shutterstock.

One Redditor shared, “Guns.”

Another user replied, “As a gun owner, I can’t tell you how cringeworthy this is. I own firearms myself, but it is just a hobby, and that’s it. Most of the other time, I read books, work, be a dad, or play Diablo 4. I barely bring it up unless I am around others who happen to bring it up or discuss their experiences shooting firearms or what firearms they’re going to purchase. The minute I see gun owners rocking punisher skull s- or other tacticool stuff, I play dumb and just act as if I’ve never held a gun. Those people are annoying.”

Do you agree with the things listed above? Share your thoughts below.

Source: Reddit. 

10 Crazy Good Movies Where Women Are the Bad Guys

Image Credit: Lionsgate

Are you looking for a movie night with a twist? Look no further than these Reddit-voted top ten films where women take on the destructive bad guy role.

10 Crazy Good Movies Where Women Are the Bad Guys

10 of the Worst TV Series Ever According to the Internet

There’s Seinfeld, The Sopranos, Game of Thrones, The Office, and other legendary shows. But have you considered that for each show that garners universal critical acclaim, there is an inverse show lurking on the other end of the IMDb rating scale?

10 of the Worst TV Series Ever According to the Internet

15 Cover Songs that are Better than the Original

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Sometimes, a cover of a song ends up doing far better than the original. Some covers are so good that we didn’t even realize the cover version wasn’t actually the original.

15 Cover Songs that are Better than the Original

These 11 Movies Are So Bad You’ll Wish You Could Unsee Them

Photo Credit: Lightstorm Entertainment / TSG Entertainment II

The movies we love best are a combination of excellent characters, plots, stories and cinematography. But if these factors can make great movies, they can also make terrible movies—the ones that make people cringe, the ones we swear they’ll never watch again.

These 11 Movies Are So Bad You’ll Wish You Could Unsee Them

10 Celebrities Who Are Universally Disliked

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People will always have preferences and something to say about celebrities. What you might love may not be the same for others. Whether it’s about their past behaviors, legal issues, or feuds with other celebrities, here is a list of celebrities people just cannot stand.

10 Celebrities Who Are Universally Disliked



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Source: financequickfix.com

Apache is functioning normally

Rohit Chopra, director of the Consumer Financial Protection Bureau, defended the agency’s proposal to prevent credit bureaus from considering medical debt in consumer credit scores will have little impact on creditors because medical debt has “little predictive value in credit decisions.”

Bloomberg News

A proposal by the Consumer Financial Protection Bureau to ban medical debt from credit reports is drawing the ire of the financial services industry, which claims not enough has been done to study the root cause of the problematic medical billing: The fractured health care system.

Advocates have been pushing for years for the CFPB to take medical debt off credit reports, claiming millions of consumers are pursued for debts they don’t owe or that are inaccurate. In September, the CFPB released an outline of a sweeping proposal to amend the Fair Credit Reporting Act. The plan was announced by Vice President Kamala Harris from the White House, with CFPB Director Rohit Chopra saying that medical debt has “little predictive value in credit decisions.”

In comments that closed last week about the proposal, financial firms and trade groups said that if enacted, the plan would restrict lending, increase costs and result in more denials of credit to low- and moderate-income consumers. Experts claim the CFPB’s proposal would make credit reports less accurate, increasing risks for lenders. 

“Conceptually, the CFPB is getting into a dangerous place, because they’re saying medical debt doesn’t have predictive value — and that’s not their job,” said Kim Phan, a partner at the law firm Troutman Pepper, who focused on privacy and data security. “The industry has the right to decide what has value and what doesn’t.”

The CFPB said it expects to publish a report in December summarizing the feedback it received on its proposal from small businesses that will include written comments from stakeholders. Next year, the bureau plans to issue a notice of proposed rulemaking that will give the public an opportunity to comment on the plan before it is finalized. 

Phan said that unless the CFPB scales back the proposal or makes changes, she expects the bureau will be sued by a trade group or credit bureau once a final rule has been issued. Taking medical debt off credit reports impacts a consumer’s credit capacity, which is one of the seven factors of credit used in underwriting decisions, Phan said. 

“If a consumer earns $30,000 a year and just took on $100,000 of medical debt, their capacity to take on new credit is much more restricted,” Phan said.

The CFPB estimates that roughly 100 million people struggle with unpaid medical bills. The scope of the problem is so large that roughly 50 consumer groups banded together to urge the CFPB to take action. 

Chi Chi Wu, senior attorney at the National Consumer Law Center, said consumers get stuck with unpaid medical bills for many reasons, though the majority are due to an insurance company denying a claim, paying only part of a claim or a health care provider demanding payment. 

“Medical bills are complicated and bizarre and bureaucratic because, unlike a credit card, where the consumer has bought something, a third party is involved in the payment process,” said Wu, who is the lead author of the legal manual Fair Credit Reporting. “Everybody knows the health care system in this country is a mess. Consumers are asking why they got a bill when the insurance company was supposed to cover it.”

Still, collectors say that taking medical debt off credit reports does not tackle the underlying problems with medical billing disputes. Consumers will still owe the debt and the CFPB will be taking away a traditional tool that creditors use to spur debtors to pay: The threat of nonpayment that impacts a consumer’s credit score.

“Just because the debt is not on a credit report doesn’t mean the consumer doesn’t have to pay it,” said Jennifer Whipple, president of Collection Bureau Services, a family-owned debt collection agency in Missoula, Mont. “The proposal is not addressing the issue the CFPB is trying to fix in terms of people having insurance billing or denial issues or unsupportable health care.” 

Earlier this year, the three credit bureaus, Equifax, Experian and TransUnion, agreed to remove medical debts of $500 or less from credit reports, which represented roughly 70% of all medical debts. Debt collectors want the CFPB to study the impact of that change, with a focus on health care providers not being paid, before removing the remaining 30% of medical debts still on credit reports.  

“It’s too important an issue not to study and not to use data-driven analysis,” said Scott Purcell, CEO of ACA International, the trade group for collectors and creditors.

Whipple, who is the treasurer of ACA, said the CFPB’s message to consumers is that they do not have to pay their medical bills because there will be no impact to their credit. That kind of message, she said, could result in some consumers thinking they don’t need to pay for health care coverage at all. 

“If the message is that medical bills won’t be on a credit report, then consumers may think they don’t need to pay a high premium every month or maybe even carry health insurance,”  Whipple said. “Folks on Medicare or Medicaid will think they don’t owe the debt and so they may not take the time to fill out the forms to continue to get coverage.” 

Banning medical debt from credit reports is just one piece of the CFPB’s proposal, which would subject a wide range of companies to the Fair Credit Reporting Act’s requirements. The plan also has been criticized for restricting the sale of so-called credit header data by the three main credit bureaus, which some experts say could potentially cut off critical information to law enforcement agencies.

The FCRA requires that information on credit reports to be accurate, and was intended to provide a way for consumers to dispute erroneous information on credit reports and give creditors an unbiased and fungible metric of a borrower’s ability to repay. In its proposal, the CFPB said that consumer complaints about medical debt underscore how ineffective, time-consuming and costly the dispute process has become. Legal experts say the CFPB’s proposed changes will reverberate throughout the financial ecosystem with unknown consequences. 

“Medical debt is an insurance problem, and to say you can’t collect it or report it doesn’t solve the insurance issues and it also doesn’t help poor people,” said Joann Needleman, a practice leader and member of the law firm Clark Hill. 

Wu, at the National Consumer Law Center, said consumers often find out about a medical debt when they try to buy a car or refinance their mortgage and are told that they can’t get approved for a loan. 

“Consumers will pay the debt because they don’t have time to go back and dispute it,” she said.

Andrew Nigrinis, an economist at Legal Economics LLC and a former CFPB economist, said the CFPB did not provide a valid economic analysis of the impact of the proposal. He also said the CFPB’s research that found removing medical debt would increase credit scores was hardly a surprise. 

“It’s the same logic that if you took away mortgage delinquencies from credit reports, then obviously credit scores would go up,” he said. “It’s not a profound result.”

Medical debt is a major problem for states that failed to implement the expansion of Medicaid under the Affordable Care Act and have a high percentage of uninsured residents. In a study he conducted for the collections industry, Nigrinis found that the loss of predictive information on credit reports would result in more lending to unqualified borrowers, higher litigation costs to collect debts, and lost income for medical providers due to nonpayment of services. 

“The debt collection industry is very competitive and they pass costs on to consumers,” he said. “Presumably, debt collection rates would go up and so would costs of financing and denials of financing.”

Needleman added that the CFPB “is deciding which debts that a consumer should pay — and that’s not their role.”

Source: nationalmortgagenews.com