Blog Archive

Your divorce has been finalized, marital assets have been divided and any remaining marital debt allocated to the respective spouse.  In a perfect world, you could shut the door on that chapter of your life and move on.  BUT life isn’t perfect and the assignment of debt repayment to your ex-spouse does not mean that you are free from owing the debt.

Debt Repayment

Your divorce settlement terms are between you and your spouse.  The settlement may have assigned the repayment of the debt to one spouse but that did not change the creditor’s right to collect a joint debt.  The creditor may address their collection efforts to both debtors until the debt is repaid, refinanced or resolved.

Credit Score

Marital debt will remain on credit reports for both spouses until the debt is resolved.  Late payments by the spouse that is assigned debt responsibility will be reflected on the credit reports of both individuals.

Are you struggling to pay creditors…tired of creditors calling…worried about your credit score?  Contact Mills Law to discuss your situation with one of our attorneys: (919)934-7235

Hidden Cost of “Rent to Own” and “0% Financing” Purchases

The allure of a shiny car or a beautifully furnished home can make the low monthly payment options of “Rent to Own” and “0% Financing” appear to be an affordable, quick and easy purchase decision.   Here is what you need to know about purchase plans:

  • Rent to Own purchase plans allow consumers to “purchase” items and pay for them over long periods of time. The rental payment periods often extend past the useful life of the item.  Buyers can find themselves burdened with rental payments on an item that has little value or may no longer perform the function for which it was purchased.   “Rent to Own” payment plans are often offered on overpriced products.  This repayment plan results in an expensive purchase for the buyer and a large profit for the financing company.
  • 0% Financing purchase plans allow consumers to buy now and pay later without incurring interest charges.  For the consumer, the purchase now and pay later option can be very tempting.  Unfortunately, many individuals are not able to adhere to the rigorous repayment schedule set forth in the purchase contract.  The business is playing the “odds” that the buyer will not always make the monthly payment on time or payoff the account before the 0% financing period expires.    Suddenly the buyer’s great “deal” on the purchase became an expensive purchase.

These financing options combined with high pressure sales tactics may influence buyers to purchase items that they would not otherwise be able to afford.  Unexpected life events can quickly change a buyers’ financial situation turning that low monthly payment into a crippling financial burden that can create painful budgeting and financial distress for years to come.

For more information read these articles….

Rent to Ownhttp://www.ncdoj.gov/Consumer/Purchases-and-Contracts/Rent-to-Own.aspx

0% Financing:   https://www.nbcnews.com/business/consumer/when-buy-now-pay-later-ends-costing-you-more-much-n690256

Car Lease Informationhttps://www.consumer.ftc.gov/articles/0056-financing-or-leasing-car

In our Bankruptcy Law practice, we help families and individuals suffering emotional and financial distress due to purchase repayment programs.  If you are financially struggling to make ends meet, the Attorneys at Mills Law can offer options for financial relief.    

Call Mills Law today to schedule your FREE consumer debt consultation (919)934-7235.

Bankruptcy gives many people the opportunity for a financial fresh start.   When you work with us, we review your financial situation, look at the options that are available and determine the course of action that best addresses your financial situation.  For many people that is filing Chapter 7, for others it may be Chapter 13 and finally some people are not well served by the bankruptcy process.

After your free initial consultation you will be required to take the means test.  The Means Test is a tool that the Bankruptcy court uses to determine if you qualify to file Chapter 7 Bankruptcy.   This test uses a complex formula to compare your income, expenses and family size to the median income of similar North Carolina households.

For income levels below state median you will qualify for Chapter 7.  Even if your income is above the state median income you may still qualify for Chapter 7 after a detailed analysis of your financial situation.  For people with income above the state median income Chapter 13 may be an option to provide considerable debt relief.

Call our office to schedule your free Consumer Bankruptcy consultation.


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