Hey folks. Thank you for visiting our website. I haven't posted on my website in a little while, and I'd like to apologize and explain why. We have been so busy over the past few months filing Chapter 7 and Chapter 13 bankruptcy petitions, we just haven't had the time. Why are we so busy? Because we do a good job for every client and our bankruptcy fees are affordable and usually much lower than our competition. Yes, we do advertise on the internet (that's probably how you found us!), but the large majority of our business comes from referrals from satisfied client's who have used our bankruptcy services and passed on our name to friends and family. Nothing makes us happier than that. Just the thought of having to call an attorney to discuss bankruptcy can be overwhelming. We pride ourselves in taking the time necessary with each new client call to listen carefully to your needs and explain what we can do to help you as clearly as possible. Unlike many other firms, we will tell … [Read more...]
Bankruptcy: What is it and how does it work?
As a Maryland bankruptcy lawyer, I have many clients that know very little about the bankruptcy process when they come in for a consultation. It is important that anyone considering filing for bankruptcy to have a basic understanding of the process before they make the decision to file. Everyone has a right to know what their options are and how these options can affect their future, especially when dealing with a bankruptcy. Types Of Bankruptcy There are two types of bankruptcy and each carry different qualification standards. Filing for Chapter 7 bankruptcy produces a debt elimination at very little out of pocket cost to the debtor. However, a debtor must have a reportable income less than the median income level of their state of residence in order to qualify. This rule prevents abuse of the system by weeding out anyone who may be able to afford to repay their debts rather than have them eliminated. Filing for Chapter 13 bankruptcy allows a debtor to develop a repayment plan … [Read more...]
Married and Filing for Bankruptcy
If you are married and filing for bankruptcy, it is important to think about how it will affect your spouse. When a person is married, then both that person and their spouse are basically co-signers on any credit cards and bank accounts held jointly. So, if your spouse files for bankruptcy, then you are both affected by the consequences. For example, if one spouse files for bankruptcy, and his or her debts are discharged, it is possible for creditors to look to the non-bankrupt spouse to collect the debts. A Maryland bankruptcy attorney can help you to protect your spouse as much as possible. However, if your spouse is not liable in any way for the debt, then the credit agency cannot collect from them. It can be difficult to determine if your spouse is liable for your debt. It may be better for a spouse to file for bankruptcy in Maryland than in some other states. This is because Maryland is not a community property state, it is an equitable distribution state. When you are married and … [Read more...]
Is Filing for Bankruptcy in Maryland a Good Decision?
Deciding whether or not to file for bankruptcy in Maryland may be a tough decision to make. In order to make an informed decision it helps to know how filing for bankruptcy will affect you now and in the future. Here is a list of some Maryland bankruptcy basics: Maryland Bankruptcy Positives: Filing for bankruptcy may make it possible to: 1. Eliminate the legal obligation to pay most, if not all, debts. 2. Stop foreclosure on a home and allow for the debtor an opportunity to cure a default. 3. Prevent repossession of a vehicle or other personal property. 4. Stop wage garnishment, harassment from debt collectors, and other similar activities. 5. Prevent utilities from being turned off, or restore those that already have been. 6. Lower some types of monthly payments, such as car loans. 7. Challenge the claims of certain creditors who have violated federal or state consumer protection laws, or who have engaged in fraudulent or other unlawful conduct. Maryland Bankruptcy … [Read more...]
Tax Refund and Chapter 7 Bankruptcy
As 2011 draws to an end, many people will be thinking about filing Chapter 7 bankruptcy in Maryland in 2012. One very common question, almost always asked at the beginning of the year, is: IF I FILE CHAPTER 7 BANKRUPTCY IN MARYLAND, WILL I STLIL BE ABLE TO KEEP MY TAX REFUND? The answer is.............yes, in just about every case, you will be able to keep your tax refund. When you file Chapter 7 bankruptcy in Maryland, you are permitted to keep roughly $12,000 worth of "liquid" assets. That does not include your house. That includes, for most people personal belongings such as household goods and furnishings, automobiles that are fully paid off, money in savings and checking accounts, and certain other assets. One asset that people often forget is there tax refund. A tax refund, or an expected tax refund, is nothing more than money in a savings account held by the government that will be given to you after you file your taxes and show that you have overpaid your taxes, … [Read more...]
Establishing Credit After Bankruptcy During the Recession
A number of the people I counsel want to know how soon they can restore their credit after bankruptcy. The prerecession standard advice was two years for a credit card with decent interest and four years for a mortgage with indecent interest. But that was then. Now, because so many people have bad credit because of foreclosures, late payments, and bankruptcies, it's hard to say what decisions the credit issuers will be making in the next several years. Will they be more forgiving because of the need to pull in people who might not have qualified a few years ago, or will they get tighter and not give credit at all until more time has elapsed after the bankruptcy? Only Fair Isaac (FICO) knows for sure, sort of. For sure, if you want to reestablish credit, the old ways are probably still the best ways. Get a major credit card, periodically make purchases, scrupulously make your payments on time, get a second card, same thing, work to build your credit line, never max-out your cards, … [Read more...]
Does My Spouse Have To File Bankruptcy With Me?
No, your spouse does not have to file bankruptcy with you. There is no law stating that both people in a marriage must file bankruptcy. A married person can file a single bankruptcy. If a married person does decide to file without their spouse, some information from the non-filing spouse would be needed. The non-filing spouse’s income would have to be listed in order to do the means test and any joint property owned would also need to be listed. If any of the debt is in both your names, then you would want to consider having your spouse file. Once the debtor files bankruptcy, the co-debtor becomes solely liable for the debt. For example, if you and your spouse have both your names on a credit card, your spouse will become responsible for the debt once you file bankruptcy. Depending on the amount of debt and your individual situation, you may consider both filing bankruptcy. It is not mandatory for a married couple to file bankruptcy jointly. Each couples individual circumstances … [Read more...]
Utility Bills and Bankruptcy
Two Rules for Utilities and Bankruptcy When people are current with their utility bills, utilities rarely become an issue in bankruptcy. That is because Section 11 U.S.C. § 366(a), prohibits utility companies from discriminating against people based solely on bankruptcy filing. However, often being current is not the case and people seek to discharge their back utilities debts through bankruptcy. You can do that, but keep in mind there are two issues to consider. First, pursuant to 11 U.S.C. § 366(c)(4), a utility company has a right of set-off against your deposit. Meaning, the utility company can keep your deposit and apply it to your pre-petition debt. Second, pursuant to 11 U.S.C. § 366(b), the utility company may shut off your service on the 21st day following the filing of your bankruptcy petition if you are discharging a debt to the utility company and have not paid a post-petition deposit. In other words, if you file a bankruptcy and plan on discharging a debt … [Read more...]
Have a Debt Free 2012!
Happy Thanksgiving to all. If you are visiting our website during this time of the year, and you are thinking about filing for bankruptcy, you have taken the first step in the right direction to make you 2012 your best year ever. Too many Marylanders have so much credit card debt and other other debt that they literally cannot go entire day without thinking about their financial woes. Many, many years ago, our founding fathers realized that life, liberty and the pursuit of happiness INCLUDES the ability to seek debt relief and a fresh start in difficult times. That is why the right to file bankruptcy was inluded in the first draft of our United States Constitution. It is your right, and if you don't use it, you are giving up one of the greatest benefits of living in this country. Chapter 7 bankruptcy in Maryland allows you to eliminate credit card debt, medical bills, judgments, garnishments, repossessions and all other unsecured debts except student loans and most debts to … [Read more...]
Facing Foreclosure in Maryland? Read This.
Mortgage Assistance companies and credit counselors are not lawyers and they can’t explain the legal ins and outs about the bankruptcy laws. Not that they want to, because telling someone to see a lawyer about Chapter 13 bankruptcy might be a better option for the homeowner, but it won’t put a fee in the company’s bank account. All too often, these companies will assure the homeowner that they can help, only to notify them that they can’t do a thing – after they have collected their fees and often mere days before the foreclosure – leaving the homeowner with no time to fully explore bankruptcy or other legal solutions. Many companies are disreputable; taking money but doing nothing. What a mortgage assistance company does is collect a fee to help a homeowner workout a repayment plan with their mortgage company. The fee is often a full mortgage payment, non-refundable, and there are usually no guarantees that the payment plan will be one the homeowner can afford. Any homeowner … [Read more...]
