How To List Rent
The first thing you’ll want to make sure is that what you think is ‘rent-to-own’ isn’t either a lease or a financing agreement. So, you’ll want to either find your original contract, check a recent statement, or contact the store/creditor to confirm. You don’t have to tell them that you’re looking for this information because you’re planning to file bankruptcy if you don’t want to.
What To Know Before You Rent To Own
Rent-to-own purchases are typically much, much more expensive than one may think. Even financing an item at a relatively high-interest rate is often cheaper than renting to own. Rent-to-own contracts also escape some state interest rate caps and some consumer protection statutes, leaving renters more vulnerable than those using credit. And, in most states, breaching a rent-to-own contract could land you in jail.
In short, rent-to-own is a very bad deal financially and a riskier way for consumers to obtain goods. If you must use rent-to-own, make sure that you understand the terms clearly, and know the risks of missing a payment. Read your contract and any notices you receive from the store carefully. Be aware that if you cant make a payment on time, you may not have the buffer you do with most creditors, and youll need to act quickly to resolve any problems that arise. As this article points out, the old adage Buyer Beware is especially true with rent-to-own contracts. If you find yourself struggling financially and need help, to see what we can do for you.
How Do I Find Out More About What Will Happen To My House In A Bankruptcy
The rules regarding houses and bankruptcy are somewhat complicated, so to find out how they will apply in your specific situation, and for details on what will happen with your house after filing bankruptcy, we recommend that you contact a Licensed Insolvency Trustee.
Your first appointment with a Trustee is free, and you will learn more about your options. For instance, perhaps you can use consumer proposal as an alternative to bankruptcy. Knowledge is power: contact a Trustee today.
What If I Have Very Little Equity
If you have recently mortgaged or re-financed your home, you may have very little equity in it . If this is the case, there is a chance you can keep your home, and continue your mortgage payments, if you can find a way to pay this amount into the bankruptcy through other means. This is a matter you can discuss with a Licensed Insolvency Trustee for clarification.
Find Out What Items Creditors Can Take From You By Repossession And What’s Off Limits
Updated By Amy Loftsgordon, Attorney
If you’re behind on a debt or loan payments, you might be worried about the creditor repossessing something you own, like your car. Repossession is what happens when a creditor takes property put up as collateral because you’ve defaulted on the debt. Strict rules control what a creditor canand can’ttake if you default. While credit agreements differ and laws vary from state to state, generally, creditors can repossess:
- motor vehicles, including cars and motorcycles
- rent-to-own items, and
- any secured personal property you pledged as collateral for a debt.
They can’t, however, usually take:
- property you haven’t designated as collateral
- things you bought with a credit card, and
- property named as collateral in an unenforceable contract.
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Is Your Furniture Collateral
To determine whether your furniture can be repossessed during bankruptcy, your attorney will first want to find out whether the furniture is collateral on a loan for its purchase. The creditor has a legal right to repossess the furniture if the terms of the contract that governs the purchase is an enforceable security agreement between you and the creditor concerning the collateral.
If you purchased your furniture with a credit card, the creditor has an enforceable security agreement with you and a secured interest in it. In that case, the creditor could repossess the collateral your furniture during bankruptcy.
What Is A Secured Credit Card And How Do I Obtain One
A secured credit card is ideal for people with low or no credit. In order to obtain one, you must make a deposit, which is essentially treated as collateral. For example, if you deposited $1,000 you should be able to charge up to $1,000 on your account. From there, a secured credit card essentially works like a regular credit card, with required minimum monthly payments. You will be able to make purchases online and in-stores, plus youll be able to use the credit card to secure costs like a vehicle rental or hotel room. The initial deposit on your card will remain there until you close your account, move over to an unsecured credit card upon completion of your Bankruptcy or Consumer Proposal or default on your secured balance .
Demonstrating good behaviour while using a secured credit card is a positive way to rebuild your credit and earn the trust of your financial institution. Your lender may be more willing to offer you an unsecured credit card upon completion of your Bankruptcy or Consumer Proposal or they may increase your secured credit limit without requiring you to make another deposit.
If you are obtaining a secured credit card, be sure to review any fees surrounding the card carefully, as they are typically higher than applying for an unsecured credit card that may help.
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What’s The Difference Between Rent
Rent-to-own is exactly what it sounds like. You rent the property and while you have a certain ownership interest in the property, you don’t “own it.” Only after you’ve made all payments under the contract, do you become the owner of the property.
When you lease property, you’re only renting it for a period of time. Once your lease term is up, you have to give the property back. For more on how leases are treated in bankruptcy, check out the Guide to Leases in Bankruptcy in our Learning Center.
When you finance property, you own it as soon as you bring it home from the store. But, the bank that loaned you the money for it has a “security interest” in the property. Thats why its called a secured debt. So, if you can’t make all the payments, they can take the property back. You can learn more about how this works in bankruptcy in this article.
Detroit’s Comeback Efforts Linked To An 85
The Lewis College of Business in Detroit had been Michigans only historically Black college or university for more than seven decades before it was shuttered in 2013 due to financial hardship and a steep decline in enrollment. But eight years after closing, the school is set to make a return only this time under a slightly new name and an entirely new mission.
Former Air Jordan designer Dr. DWayne Edwards is refounding the school as the Pensole Lewis College of Business and Design with an all-around focus on design, a nod to the Pensole Design Academy he founded in 2010, the countrys first academy dedicated to footwear design.
Of the HBCUs that are in existence today, very few of them have a focus on design, Edwards told Yahoo News. We hope what were doing by reestablishing Lewis College is that itll help people look at Detroit as an epicenter for creativity and design.
The Pensole Lewis College of Business and Design will be the first HBCU to focus solely on design from footwear to furniture and packaging and will offer students both two-year and four-year degrees, as well as special certificates, working directly with corporate partners to help students transition into careers after graduation.
Now Edwards wants to use the school to help create the next wave of Black designers in and around the city who have often had to go elsewhere.
Local leaders believe the refounding of Lewis College brings with it a chance for the city to redefine itself once again.
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Pros And Cons Of Chapter 13 Bankruptcy
If you do not qualify for a Chapter 7 bankruptcy because of your income level, you may still be able to file for a Chapter 13 bankruptcy. This type of bankruptcy is mostly known as a reorganization of debt rather than totally discharging or erasing your debt. While some people may think that the repayment plan is not beneficial for them, there are some advantages associated with a Chapter 13 bankruptcy. Of course, there are also disadvantages of filing bankruptcy under chapter 13.
A Quick NavigationAdvantages of Filing Chapter 13 BankruptcyDisadvantages of Filing Chapter 13 Bankruptcy
What Happens To Your Information
Any previous name included in the bankruptcy petition will appear on the bankruptcy order, and in the:
- notice of your bankruptcy, which is permanently recorded in the Gazette but excluded from search engine results one year and three months after publication
- Individual Insolvency Register which will be removed within three months of your discharge
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How Is A Lease Different Than A Credit Transaction Financing Or A Loan
Progressive Leasings lease-to-own option is not credit. With a credit transaction, financing or a loan, you make a purchase with borrowed money that must be repaid, often with interest. With a lease-to-own agreement with Progressive Leasing, we purchase the items you select from the retailer. Then, you sign a lease-to-own agreement to lease that merchandise from Progressive. Progressive owns the merchandise, and you can take ownership after making all standard lease payments or through an early purchase option.
Standard agreement offers 12 months to ownership. Early purchase options cost more than the retailers cash price . To purchase early call 877-898-1970.
If You Disagree With The Decision To Sell An Item
If you think the trustee is acting unreasonably in taking or selling something that you own, for example because you believe it’s necessary for your family life, you can challenge the decision. You’ll need to apply to the court to do this. You should get advice and try asking the trustee to change their mind before you decide whether to apply to the court.
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What Are Surplus Income Payments 2020 Guidelines
The federal government provides guidelines to all Licensed Insolvency Trustees to help them determine if an individual or family has surplus income. Your threshold for surplus income is calculated based on the number of dependents in your household and your net family income. Net family income refers to how much income you have after deducting income taxes, payroll deductions, essential medical expenses, alimony and child support, but typically doesnt include things like rent / mortgage payments, food, utilities and other similar day-to-day expenses.
The 2020 guidelines for surplus income statements are:
# people in Family | Net Family Income
- 1 | $2,243
- 6 | $5,332
- 7+ | $5,936
The federal guidelines dictate a household of one person could earn a net monthly income of up to $2,243 and have no surplus income payment obligation to the Trustee. However, to use an example, if the actual net income was $2,500 per month, the difference of $257 per month is considered surplus income. Half of this surplus income will be payable to your Trustee for the benefit of your unsecured creditors. In this example, the individual would have to pay $128.50 each month during their Bankruptcy period. The precise calculation of surplus income payments varies based on the number of people in your household and will be completed with your Licensed Insolvency Trustee once youve chosen to declare Bankruptcy. This will also be reviewed in detail during your confidential consultation.
Who Is Progressive Leasing
Progressive Leasing is the largest and longest-tenured virtual lease-to-own provider in the United States. Since 1999, Progressive Leasings fair and transparent lease-to-own option has helped millions of customers and their families, even if they have less-than-perfect credit or an inability to pay for their purchase up front. Progressive Leasing has also helped more than 30,000 retail stores drive increased revenue and improve customer satisfaction.
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An Exampleassuming A Furniture Lease
Lets say that a year ago, after a period of unemployment, you got a new job that required you to move to a new area. Your family rented an unfurnished home and then rented a bunch of furniture for it. You got two sets of bedroom furniture, as well as for the family room and dining room.
Your credit record was terrible so you used a rent-to-own contract, having been told you didnt need credit. You pay $350 per month for furniture which you heard would have cost about $7,000 to buy new. Under the terms of the contract, after paying 36 monthly payments you would own the furniture. But until then you were renting it.
Your income from the new job has not turned out to be as high as youd hoped. Plus huge debts from when you were not employed are putting unbearable financial pressure on you. So you talk with a Louisville bankruptcy lawyer about your options.
You learn that if you file bankruptcy and the rent-to-buy contract is treated as a lease, your options are limited. You can assume the lease by continuing to pay the $350 monthly payments and keep the furniture. Or you can reject the lease, give back the furniture, and any resulting debt would be discharged in bankruptcy. That would leave your family with an empty house so thats not really an option.
What Type Of Items Are Available To Lease From Progressive
Items for personal, family or household use may be available to be included in Progressive Leasings lease-to-own option. Eligible items include appliances, furniture, jewelry, electronics, mattresses, mobile devices and accessories, musical instruments, and more. Progressive Leasing will not allow certain kinds of items to be included on the lease-to-own agreement Examples: items that are prohibited from lease-to-own by law, items permanently attached to a home or vehicle, consumable or intangible items, and items that create an excessive risk defined byProgressive Leasing. See Leasable Items Principles https://progleasing.com/leasable-items/
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Should I File Chapter 7 Bankruptcy Right Now
Some signs that you may be a good fit for filing bankruptcy now:
You have more than $10,000 of dischargeable debt
Your credit score is already low
You donât own expensive property
Keeping up with payments is making it impossible to make ends meet every month
Youâre worried about wage garnishment or being sued for your debt
You pass the means test because you earn under the median income in your state
You donât see a way of being able to pay back your debt over the next 5 years
If these apply, right now may be the right time to file for bankruptcy.
Who Qualifies For Chapter 7 Bankruptcy Should I File
There is a difference between who is allowed to file and who should file. Most people who earn under the median income for their state, based on their household size, are able to file. This is because they pass the âmeans test,” according to bankruptcy laws. The means test takes into account your average monthly income over the last 6 months.
If you donât have a job or earn near the minimum wage, you will likely qualify for Chapter 7 bankruptcy. If you don’t pass the means test, you can file a Chapter 13 bankruptcy but not Chapter 7.
Folks looking for a fresh start typically fall into one of three categories:
Those who should file for Chapter 7 bankruptcy right now
Those who should wait a little bit of time and then file for Chapter 7 bankruptcy
Those who should not file for Chapter 7 bankruptcy.
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What Happens To My House After Filing Bankruptcy
The following article addresses the commonly asked question: what will happen to my house after filing bankruptcy? We all dream of home ownership. But what happens when the Canadian dream of owning your own home does not work out as well as expected?
It costs a lot of money to own a home. You have mortgage payments and property taxes. Your gas and electricity bill will be higher than when you lived in an apartment, because your house is bigger.
Heres a typical scenario. Of course, everyone wants furniture for their bigger house, and that costs money. Unfortunately, many Canadians buy a new home and then go to a furniture store that offers a buy now, pay later deal. It sounds great: you get your furniture today, and you dont have to pay for it for a year. Its fine until next year comes, and now youre faced with a huge bill for furniture that you cant afford.
If, when the furniture bill comes in, you have also lost your job, or perhaps had your hours cut at work, you now have a problem.
For many people the only solution may be a personal bankruptcy.
Your Car Can Be Repossessed
Most auto loans, whether you got the loan through the dealer, a bank, a credit union, or another lender, give the creditor the right to repossess the vehicle if you default. The lender usually isn’t required to give advance notice before taking the car. After repossessing your motor vehicle, the lender will sell it to recover the money you owe. If the outstanding loan balance is more than the sale price, you might be held responsible for paying the deficiency, plus the creditor’s repossession expenses.
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