Latest news with #Chapter13
Yahoo
4 days ago
- Business
- Yahoo
8 ways to remove old debt from your credit report
Unpaid debts and accounts in collections will stay on your credit report for seven years. Removing old debt from your credit report may help improve your score. You can file a dispute with the credit bureaus or enlist the help of a credit repair company to remove old debt and inaccuracies from your credit reports. Removing old debts from your credit report can help improve your credit score. Not every debt can be removed, and accurate items like late payments, discharges and debts in collections must remain for a certain amount of time. But removing those debts could be an important step in rebuilding your credit score. Combining multiple strategies may be most effective. Start by requesting free copies of your credit reports from the three major credit bureaus — Equifax, Experian and TransUnion — at to determine which credit reports have old debts on them. Each bureau records slightly different information, so old debt may appear on some reports and not others. Once you know what debt is on your credit report, verify the age of your debt and search your financial records to determine whether you paid off the account and, if so, whether you paid the original creditor or a debt collector. For delinquent debts, determine the date on which you first became delinquent. For example, if you missed your March 2022 payment and your bill eventually went into default, your delinquency date would be March 2022. No matter how many times a debt is sold (and resold), the date that counts for old debt is the date of delinquency with the original creditor. Information only stays on your credit report for a certain length of time. Unpaid debts, delinquent accounts and accounts in collections will remain on your credit report for seven years even if you eventually repaid them. Chapter 7 bankruptcies are visible for 10 years, and Chapter 13 bankruptcies, seven years. If your old debt is about to expire, the easiest approach is to wait for it to fall off. However, if the right number of years has passed and it's still showing, you can contact the appropriate credit bureau to have it removed. You may be able to get a collection account removed before the expiration if you have paid off the debt. Contact the collection agency and explain why you need the item removed. If there were circumstances beyond your control that led to delinquency, sharing those details may help convince the collection agency. It's up to the collection agency to decide whether they're willing to remove the account. Writing a clear, well-organized request and being in otherwise good credit standing can increase your chances. Occasionally, debts may show up on your credit report past their expiration by mistake. If this happens, you can file a dispute by contacting each credit bureau that is still reporting the old debt. The credit bureaus can be contacted by phone, mail, or online. Gather supporting documents such as receipts, letters and statements from your creditor. These documents will help the bureau verify when your account became delinquent. From there, they will open an investigation and contact your creditors to resolve the error. The Fair Credit Reporting Act requires credit bureaus to correct or delete any information that can't be verified or that is incorrect or incomplete, typically within 30 days. If the creditor can't verify the debt, it has to come off your report. Debt statute of limitations Debt collectors can still pursue unpaid debts even if they have been removed from your credit report. Agreeing to repay the debt could restart the statute of limitations on your debt. In addition to contacting the credit bureaus, consider contacting the creditor that is reporting the debt. In some cases, going directly through the creditor may be faster than going through the credit bureaus. As with the credit bureaus, state your case and include copies of any relevant documentation. Your creditor will have 30 days to investigate and respond to your claims. If you go this route, be careful to avoid making statements that could restart the debt clock if the statute of limitations has not expired. Hiring a credit repair company is another option for removing old or incorrect information from your credit report. For a fee, a credit repair company will identify errors on your reports, file disputes and even write goodwill letters on your behalf. This service can cost between $50 and $200 per month, so it's important to do your research and ensure you're using a reputable credit repair company. If you've contacted the credit bureaus and your creditor but the debt is still showing on your credit report, you can try complaining to someone higher up in the company reporting the debt. 'Direct your next letter to the president's attention at the company's headquarters address,' says Sonya Smith-Valentine, former managing attorney at Valentine Legal Group, 'because you get a different kind of response from the office of the president than you do from customer service.' You can also file a complaint with the Consumer Financial Protection Bureau. The CFPB forwards complaints to companies and publishes them in its public database, which can help you get a response. Note: As of February 2025, the Trump administration has halted the work of the CFPB. If you are unable to file a complaint with the CFPB, you can also file a complaint with your state attorney general. Dealing with debt collectors Debt collectors can pursue you after the statute of limitations has expired on your debt, but that doesn't mean you have to pay them. If you have exhausted other options for removing old debt from your credit report, then contacting an attorney may be the next step. Often, a letter on legal stationery is enough to move a company to address your concerns. However, if it is not, a lawyer can advise you on whether a lawsuit is a good option for your situation. If you do talk to an attorney, choose one who specializes in consumer rights, Smith-Valentine says. 'When you're dealing with the Fair Credit Reporting Act, it is very convoluted and you need someone who's done it, who understands it and who knows where the holes are.' One source for help is the National Association of Consumer Advocates, an organization of lawyers who specialize in credit and debt law. When you work hard to repair your credit, you want your credit report to reflect that. In some cases, you may be able to remove old debts that are still showing if they are old enough or fully repaid. You can reach out to the credit bureaus and your creditors yourself, or you can hire a credit repair company to handle the process for you.
Yahoo
19-05-2025
- Business
- Yahoo
5 Chain Restaurants You Grew Up With That Went Bankrupt In The Past Year
Chain restaurants come and go, some of which are fondly remembered while others are doomed to fade into obscurity. With rising costs of food and rent, corporate restructuring, and more, there are an unfortunate number of chain restaurants that you likely grew up loving that have filed for bankruptcy in the past year. Among these beloved household names are TGI Friday's, Red Lobster, Bucca di Beppo, Rubio's Coastal Grill (aka Rubio's Baja Grill), and Arby's Franchisee Miracle Restaurant Group. Despite the number of tell-tale signs that a chain restaurant is about to go bankrupt the bankruptcy announcements have left fans fraught with disappointment. One thing to keep in mind is that there are different types of bankruptcy for which a restaurant can file, which include Chapter 7, Chapter 11, and Chapter 13. Depending on the type of bankruptcy filed and what terms are negotiated, there can be varying outcomes, some of which might mean that a restaurant does not have to close permanently. Of your childhood favorites, some of these restaurants may yet be able to hang on a little longer, while others could very well be gone for good. Read more: 15 Failed Restaurant Chains We Actually Miss In October of 2024, both Columbus, Ohio and Buffalo, New York said goodbye for good to TGI Friday's as 50 locations shut down. On November 2nd, 2024, the popular chain restaurant's parent company filed for Chapter 11 bankruptcy protection, citing financial strain from the COVID-19 pandemic, and sought to sell off corporate-owned assets. This filing affected only the corporate-owned locations and not the franchisees, allowing for those locations to continue operations. Since opening its first location in 1965 in New York, TGI Friday's paved the way for other American casual dining restaurants with a consistent menu and value-priced food. Maligned in the '90s cult film Office Space for the required "flair" that waitstaff used to sport on their suspenders, the restaurant was home to happy hour appetizers and a generally low-key atmosphere. For those that still hold TGI Friday's in high regard, there's hope yet to enjoy your favorite loaded potato skins: Simply browse the website to find your nearest location to enjoy all of the delicious deals. Whether you're a fan of using its famous Cheddar Bay biscuits to upgrade a chicken pot pie or enjoying your favorite "Signature Feasts," Red Lobster has steadily become synonymous with seafood indulgence. In May of 2024, Red Lobster filed Chapter 11 bankruptcy and planned to auction its restaurant chain to the highest bidder. Thai Union Group, which owned a 25% stake in the company, cited similar concerns as TGI Friday's in its bankruptcy filing including rising costs, interest rates, and a decline in demand due to the COVID-19 pandemic. Though many tried to point a finger at Red Lobster's "Endless Shrimp" campaign as the culprit for its bankruptcy filing, there is much more to the story than meets the eye. One of the larger issues was real estate and the costs of rent across numerous locations. Adding to this were supply chain issues and frequent changes in management that dwarfed the promotional shrimp debacle in importance. Luckily, in September of 2024, Red Lobster was rescued from bankruptcy and is now run by P.F. Chang's CEO Damola Adamolekun, which is a much more positive outcome for lobster lovers who almost had to bid adieu to their most-visited seafood spot. Known for large portions, maximalist decor, and an enduring presence across the U.S. since the early 1990s, Buca di Beppo has played host to celebrations of every kind imaginable and plenty of core childhood memories. The family-style Italian chain restaurant is a beloved classic with its multiple themed dining rooms and a special seat known as The Kitchen Table, where guests can sit and watch dishes being prepared. Despite the warm memories and dishes, the restaurant filed for Chapter 11 bankruptcy in August of 2024, citing revenue issues due to the COVID-19 pandemic, a decline in customer demand, and over $1 million in debt from gift cards that customers hadn't yet redeemed. Buca di Beppo shuttered 18 of its lowest performing locations — leaving 44 remaining — and was planning to open one new restaurant at the time of its Chapter 11 filing. This move was emphasized by Buca di Beppo president Rich Saultz as strategic restructuring with the intent of positioning the chain for future success, though fans and former employees might opine otherwise. The future still remains to be seen for Buca di beppo and its smattering of remaining locations, so it may be worth seeking out your nearest restaurant for a taste of nostalgia before it's too late. A San Diego staple of seafood delights, Rubio's Coastal Grill has been a spot for quick and refreshing dishes since 1983. With a menu boasting 40 dishes inspired by the cuisine of Baja, Mexico and a number of West coast locations, the restaurant became best known for its Baja-style fish tacos. Having first filed for Chapter 11 bankruptcy in 2020 as a result of the COVID-19 pandemic, the restaurant chain was able to successfully emerge with a more successful store footprint. Sadly, due to further rising operational and food costs, the company declared bankruptcy once again in the summer of 2024 after shuttering 48 locations in California to the dismay of longtime fans. Despite these circumstances, the remaining Rubio's locations are still hanging on, albeit amounting to only 86 restaurants from what was once almost 200. Currently, only California, Nevada, and Arizona are home to operating Rubio's. As of August 2024, still in the midst of bankruptcy proceedings, the company appears to have found a buyer in a firm run by former Famous Dave's CEO Jeff Crivello. While the future remains to be seen for this once briny and bright chain, fans are still holding out hope for their fish taco favorite to weather the storm. In June of 2024, Arby's franchisee, Miracle Restaurant Group, filed for Chapter 11 bankruptcy for the second time since 2010. At the time of its first filing, the group operated more than 60 Arby's locations. By the time of its second filing, the group ran only 25 restaurants in Indiana, Texas, Illinois, Mississippi, and Louisiana. Per the franchisee, the reasons for filing bankruptcy a second time included the effects of the COVID-19 pandemic, increasing supply costs due to inflation, and issues with the IRS not providing a timely refund for Employee Retention Tax Credits worth more than $3 million. The first time that Miracle Restaurant Group filed for bankruptcy saw successful results in its restructuring with creditors being paid in full; however, the current economic climate presents greater challenges and difficulties than ever before. Though Miracle Restaurant Group sought financial relief from Arby's, it wouldn't have been enough to save the franchisee from having to file Chapter 11. It's worth noting that this bankruptcy directly affects the franchisee and not the overall parent company of Arby's, meaning that there are still over 3,000 Arby's locations operating in the United States. Read the original article on Tasting Table. 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Yahoo
14-05-2025
- Business
- Yahoo
Suze Orman says retirees should have a 5-year ‘just-in-case' fund. Is this true?
A while back, I had people coming unglued on me when I suggested retirees should have three to five years of savings in a money-market fund or CDs. Suze Orman said a 'just-in-case' fund should not be tied to the market, so you won't have to sell investments if things go sideways. Orman, on her podcast, spoke about accessing money during retirement. 'What if the market has crashed at the time that you want to do that? Because it's not always that stocks go down and bonds go up or bonds go down and, therefore, stocks go up.' I'm 65 and a widow with 5 children. Should I split my $1.1 million nest egg between them while I'm still alive? 'I'm so confused': Is the U.S.-China trade deal for real? I'm 55 and have $650K in my 401(k). Can I finally rest easy? My second wife says her 2 kids should inherit our estate, but I also have 2 kids. Is that fair? 'I am scared to death that I'll run out of money': My wife and I are in our 50s and have $4.4 million. Can we retire early? 'It feels like I'm drowning': I'm crippled by credit-card debt. Should I file for Chapter 13 bankruptcy? She said it can take three to five years for the stock market to drop and return to its previous level after a significant downturn. 'So if you really want to be on the safe side, it's five years,' she said. 'If you want to just play it so that you have at least three years, OK, you can do that as well.' Apparently, I'm in good alignment with experts. What do you think? MarketWatch Reader Don't miss: 'Retirement is within my grasp': I'm 57, my 401(k) is dropping and I'm feeling anxious about a recession. What can I do? If life has taught me anything, it's that anything can happen. Anything. It's pretty scary, if you care to think about it too much. If we were constantly living in a three-to-five-year emergency-fund frame of mind, for example, we'd probably never get out of bed. Of course, that does not mean we can't plan for worst-case scenarios, and it would be nice to have a cushion with that much support. Some readers might have built up three to five years of savings through sheer hard work, low-cost living and, perhaps, a spell of high earning. It's nice when it happens (if it happens) but along comes a need to have a new car, a down payment on a home, or an elderly relative who needs long-term care and doesn't have a house to sell, and the money seems to go as quickly as it arrives. I listened to part of the podcast you referenced in your letter. Suze Orman was speaking about taking money from lower-performing investments in order to build up those cash reserves and/or a little from higher-performing investments, so you're not going to get stuck having to withdraw large amounts of money from your investments in a down market. There's a slightly furtive element of robbing Peter to pay Paul if you are taking money from lower- and higher-performing investments to put aside for a rainy day — to have a three-to-five-year fund to see you through a market crash and an unexpected spike in your day-to-day expenses. You would lose out on the compounding before such a crash, assuming one actually happened. In other words, these financial milestones are all great in theory, but most people live in the real world where it's just not as easy as it might sound. A lot of black stars would have to align for the cataclysmic combination of events to force you to live off that three to five years' worth of savings. And it would take some kind of market timing and/or reverse engineering to come out ahead. Yes, it's smart to have financial plans and have goals, but they are two separate things. Whether you're planning to take 4% of your retirement savings when you stop working or 3%, or you have a one-year emergency fund or a five-year emergency fund, or whether you're the kind of crafty person who brings a packed lunch to work and a flask of coffee instead of spending $15 on a mediocre sandwich, everyone has their own rules. Here's a prime example: A few years ago, MarketWatch retirement reporter Alessandra Malito wrote a story about how much money you should have saved by the time you're 30. 'Ideally, your account would look like a year's worth of salary,' she wrote, according to Boston-based investment firm Fidelity Investments. By 35? Fidelity said you should have twice your salary saved. Twitter, as it was then, flipped out. The drama went on for weeks: TV shows picked it up, in addition to other news outlets. What was lost on the Twittersphere was that these are ideals — good ones, sure — and that such goals are obviously out of reach for most Americans in their 30s. Just as a three-to-five-year emergency fund might be out of reach for millions of retirees at a time when many are flirting with the idea of a part-time job. Updated financial milestones make good copy, but it's important to treat them as you would a friendly neighbor who's trying to get you to cut your hedge according to its measure rather than a frenemy who is trying to scare the pants off you or a military leader who says it's this way or the highway. Accept the good intentions with gratitude and run your own race. If you could downsize to save for that emergency? Go for it. You, like the rest of us, are doing the best we can. Don't miss: My ailing father's house burned down in the California fires. Will our brother, who took care of them, lose his inheritance? More columns from Quentin Fottrell: I'm 5 years from retiring and moved my money into non-U.S. stocks. Was that a big mistake? 'I'm very cynical': My stepmother, 85, makes bizarre requests for money from my father's $10M trust. Should I be concerned? 'My retirement is going to be a disaster': I'm 59 and have $45,000 in my 401(k). I earn $72,000. Am I doomed? The bull market has survived Trump's tariff onslaught. But stocks aren't out of the woods just yet. Gold skids more than 3% on tariff relief. Is it time to sell? My eldest son refused to share his father's $500K inheritance with his siblings. Should I cut him off? 'We live modestly': My wife and I have $900K in stocks and $380K in savings and CDs. Are we holding too much cash? The 'Magnificent Seven' are back in the stock market's driver's seat — but are they still a buy?
Yahoo
06-05-2025
- Business
- Yahoo
4 Ways To Avoid the Coming Unpaid Debt Crisis
Many people in their 50s and 60s are heading toward retirement still carrying high-interest debt which is, unfortunately, a perfect storm as rates stay high and recession concerns loom. That's the warning from Lynn Toomey, the founder of Her Retirement. Trending Now: Cutting Out These 9 Expenses Will Save Retirees Over $29,000 a Year Read Next: The New Retirement Problem Boomers Are Facing Toomey and Ashley Morgan, a debt and bankruptcy lawyer with the law offices of Ashley F. Morgan, shared with GOBankingRates some ways consumers can avoid the coming unpaid debt crisis. And if you're struggling with debt, here are the fastest ways to pay it off this year. Identify High-Risk Debt According to Toomey, high-interest, unsecured debt like credit cards and personal loans should be tackled first. 'These often carry 20% or more interest,' Toomey said. 'Debt that drains monthly cash flow and grows faster than your savings rate equals high risk.' Find Out: 6 Cash-Flow Mistakes Boomers Are Making With Their Retirement Savings Restructure Obligations Toomey advised consumers to restructure obligations using tools like 0% balance transfers or payoff strategies. Additionally, tools such as debt consolidation loans and home equity lines, when used with caution, can help consumers lower rates and regain control. Make Lasting Changes 'Use behavioral nudges to make lasting changes,' Toomey said. 'Identity-based goals work better than shame-based tactics. Try things like automation, mindset shifts, visual tracking tools and a financial coach or advisor.' Toomey said that women are more vulnerable due to caregiving roles and lower lifetime earnings. But with planning, Toomey said, they can stay ahead of this crisis. Consider Bankruptcy As a debt and bankruptcy lawyer, Morgan has helped thousands of people deal with their debt issues. The first piece of advice is to figure out where your money is going, where you can cut and other options you may have now. 'We are in a situation right now, where if you can cut back and save right now, things will be a lot easier to deal with as a recession hits and consumers face financial struggles,' Morgan said. 'If you can't cut anymore, you may be able to increase your income.' Finally, Morgan said, you may need to look into Chapter 7 or Chapter 13 bankruptcy. 'People think bankruptcy can be a dirty word, but it really is a tool to manage debt,' Morgan said. 'Bankruptcy is better than being sued or having a garnishment.' More From GOBankingRates
Yahoo
03-05-2025
- Business
- Yahoo
How I Bounced Back from Bankruptcy in Under 7 Years — And You Can Too
In late 2018, Andrea Smith declared Chapter 7 bankruptcy. She came out of bankruptcy with a net worth of around $150,000. Read More: Discover Next: Less than seven years later, she has catapulted her net worth over sixfold to $840,000. Here's how you can bounce back financially, too. Smith — speaking under a pseudonym to preserve anonymity — opted for a Chapter 7 over a Chapter 13 bankruptcy. A Chapter 13 or 'wage earner's' bankruptcy lets you keep many of your assets and restructure your debts, but they don't disappear. A Chapter 7 or liquidation bankruptcy involves selling off most of your valuable assets to pay off creditors. After that, however, the debts dissolve, leaving you with a clean slate (read the full rules from the IRS). 'I had rental properties that were upside-down on debt and produced negative cash flow,' Smith explained. They lost her money every year, rather than generating it. 'In the Chapter 7, I signed ownership of the properties over to the mortgage lenders and got a fresh start.' See Now: Unshackled by the heavy debts and negative cash flow, Smith was able to reinvest more of the slim profits from her online business into growing it. That took time and plenty of long work weeks, of course. But it ultimately let her grow her profits from just a couple thousand each month to over $10,000. Determined not to make similar mistakes in the future, Smith wanted multiple sources of income. She picked up a side hustle as a freelance writer. That added another few thousand dollars of income each month. 'Even more important than the income, it let my husband and me sleep easier at night.' Smith and her husband, a teacher, discovered that they could live comfortably on his income alone if he took a job teaching at an international school overseas. He still earns a modest salary of under $50,000. But his school provides free furnished housing, full premium health insurance for the entire family, and even paid flights home to the U.S. each year. Meanwhile, they enjoy lower living expenses overseas and lower US taxes through the foreign earned income exclusion. The IRS waives regular income taxes for expats, up to the first $130,000 per adult in 2025. 'We aim to live entirely on my husband's income, while saving and investing mine,' said Smith. By simultaneously lowering her living expenses (and taxes) and growing her income, Smith and her husband found they could save and invest $5,000 – $10,000 each month. At first, most of the growth in their net worth came from them adding money each month. But over time, their investments started compounding on themselves. They earn over $2,000 each month in passive income today. They haven't yet reached financial independence — able to cover their living expenses with passive income from investments — but they're hurtling toward it. 'We've reached what they call 'coastFI,' where we could stop investing today and our investments would compound on their own to reach our retirement goal,' Smith added. 'But we plan to keep investing at least $5,000 each month through the rest of our 40s. I never want to feel that helplessness again that I felt when going through bankruptcy.' More From GOBankingRates 5 Luxury Cars That Will Have Massive Price Drops in Spring 2025 4 Things You Should Do if You Want To Retire Early How Far $750K Plus Social Security Goes in Retirement in Every US Region 12 SUVs With the Most Reliable Engines Sources: IRS, 'Chapter 7 bankruptcy – Liquidation under the bankruptcy code' IRS, 'Foreign earned income exclusion' This article originally appeared on How I Bounced Back from Bankruptcy in Under 7 Years — And You Can Too
