Do Not Make This Mistake With Your Studen Loans

Many people want to know what happens to their student loans if they file for personal bankruptcy.  You may have heard that although they are not usually discharged, student loans can be discharged if you can show a special “hardship.”  While that may be true, it is nearly impossible for you prove the type of hardship that is necessary to discharge a student loan.   Unemployment is not a reason. Disability is not a reason.  So, you say, if those are not reasons, what are some reasons?  The answer, unfortunately, is that we are not aware of any.  We are up front and honest with your client’s and tell them that there student loans cannot be discharged, it’s as simple as that. The Good News Most other unsecured debts, such as credit cards, medical bills, repossessions, evictions, etc., are dischargeable in bankruptcy.  Most of client’s say the same thing, which is “well, as long as I can get rid of those debts, I can afford to pay my student loans.”  And we say “exactly.” There is … [Read more...]

5 Things You Need To Know About Bankruptcy

There are many factors to consider when thinking about filing for personal bankruptcy.  First and foremost, how much debt to you have?  The rule of thumb is that if you do not believe that you will be able to pay off all of your unsecured debt (debt not included houses and cars) within six months, you should consider bankruptcy. Second, how is your credit score now?  If your credit score is already low, there is no downside to filing bankruptcy.  Not only will it eliminate your debt and allow you to finally save money, but it will improve your credit score so that you will be able to qualify for a house, or a car, in the near future.  Not 7 to 10 years, but likely within 2 years. Are you facing a wage garnishment, frozen bank account or a foreclosure?  If so, it is very likely that you need to file for bankruptcy relief and that bankruptcy is your best option.  Filing a Chapter 7 or Chapter 13 bankruptcy immediately stops a wage garnishment in its tracks. It isn't too late. … [Read more...]

Will Bankruptcy Destroy Your Life

One of the most prevalent questions we receive is, "How devastating is filing for bankruptcy?" And we always say, filing for bankruptcy is not devastating, it’s as simple as that.  Nobody ever wants to file bankruptcy, but in the end, you will never find someone who filed bankruptcy who was not happy that they made the decision to file. The large majority of people who file bankruptcy already have a low credit score.  If that is the case, there is literally no downside to filing bankruptcy.  Not only will Chapter 7 bankruptcy eliminate all of your dischargeable debts, or, if you do not qualify for Chapter 7, you can do a Chapter 13 bankruptcy will eliminate some, but not all, of your debts and provide you with an affordable payment plan, usually without interest, to clear up all of your debts within 3 to 5 years. When you hire a firm to help you with filing bankruptcy, you need a firm that will not only file to eliminate your debts, but also help get your credit score place that … [Read more...]

REBUILDING YOUR CREDIT AFTER BANKRUPTCY

Like a lot of folks who start trying to rebuild credit after bankruptcy, you might be thinking of wiping your hands clean of credit. And it might make sense that the fastest way to move past the bankruptcy is to stop relying on the loans and credit cards that precipitated the bankruptcy. 1. But contrary to popular belief, using credit appropriately in the wake of a bankruptcy is the best way to rebuild credit after bankruptcy. Of all the bankruptcy facts, this one might be the most important. Indeed, you might be able to build your score to 720 within a couple of years of declaring bankruptcy if you follow a smart plan to re-establish credit. This twofold plan to learn how to fix credit starts by opening new lines of credit and concludes with paying your bills on time and in full. Rebuilding Credit After Bankruptcy Rule #1: Open new lines of credit! You might hear claims that you can have a bankruptcy wiped from your record. Beware of these claims! There is no legal way to wipe … [Read more...]

WHAT DEBTS CAN I ELIMINATE IN CHAPTER 7 BANKRUPTCY?

Chapter 7 bankruptcy allows people to eliminate their unsecured debt entirely, there is no payment plan.  In order to be eligible for Chapter 7 bankruptcy you must meet income requirements and property requirements.  In other words, you cannot make too much money and you cannot have too much property.  Those limitations are very high, so the large majority of people who contact our office qualify for Chapter 7.  Feel free to call or e-mail anytime for a free evaluation of your situation. Unsecured debts that are routinely eliminated in Chapter 7 bankruptcy are credit card debts, medical bills, repossessions, debts related to evictions and bank overdraft fees.  The most common debts that are not dischargeable in Chapter 7 bankruptcy are student loans, debts owed to the MVA, fines, restitution and certain tax debt.  Debts owed as a result of a marital settlement agreement or a family law Court Order are not dischargeable either. If you have questions about Chapter 7 and are looking … [Read more...]

REBUILDING YOUR CREDIT AFTER BANKRUPTCY – ITS EASIER THAN YOU THINK

We represent hundreds of Maryland residents in Chapter 7 and Chapter 13 bankruptcy’s each helping them eliminate their debt and save their property.  Eliminating debt, however, is only half the battle.  The question that all of my bankruptcy clients ask is “will I be able to get credit again after I file bankruptcy?”  And the answer is.......Absolutely. The fact that you filed bankruptcy stays on your credit report for up to 10 years after the filing.  However, most of our Chapter 7 and Chapter 13 clients are able to get new credit at reasonable interests rates within 24 months of filing.  We have affiliated with a credit rebuilding program called 702creditscore.com and it is a great program.  We are able to offer it our clients at no cost, so rebuilding your credit after bankruptcy is as easy as its ever been. If you have questions about Chapter 7 or Chapter 13 bankruptcy and you are searching for a Maryland bankruptcy attorney, call or e-mail us today.  We have more than 20 … [Read more...]

In Debt Today

The past few years have forced many residents of Baltimore and surrounding areas of Maryland to rely more heavily on debt to finance everyday needs and expenses. Many have seen their debt increase in the form of credit card debt, student loan debt or mortgage debt because all to often today, your house has lost value. In some cases, debt can be beneficial to the individual. Debt can help a student make it through school. Debt can also help a business get an idea off the ground. For example, the electric car company Tesla received a loan from the government, which it was able to fully repay in 2009. Tesla would never have been able to create the electric car without incurring that debt. Debt can be a necessary occurrence in these economic times. For example, it can be used to finance a car that will allow you to get to work or school. Debt can be a great tool to reach your goals. But sometimes your financial circumstances change through no fault of your own, causing these debts … [Read more...]

Bankruptcy Is Good For Your Health!!!

I saw this article online this morning and had to share with my website visitors. It is so true, and I couldn’t have said it better myself! “If you find yourself deep in debt and are desperately trying to avoid bankruptcy, http://www.nationalbankruptcyforum.com/chapter-7-bankruptcy/how-to-avoid-bankruptcy/it might be time for a paradigm shift. Not only does bankruptcy provide relief from debt, it provides relief from chronic stress that can lead to poor health. Constantly worrying about bills and your financial future is far more toxic than a negative line on your credit report. It is rarely, if ever, discussed, but filing for bankruptcy can actually improve your health and prolong your life. How did I reach this conclusion? For starters, I’ve represented clients in numerous bankruptcy cases and have seen firsthand the relief that starting over financially can provide. People generally don’t regret filing bankruptcy, they welcome the opportunity to begin anew, and many … [Read more...]

Common Bankruptcy Myths

I speak with people who are thinking about filing bankruptcy almost every day. I am amazed at some of the things people think about bankruptcy, things that are so far from the truth it is frightening. I am a lawyer, not a salesman, but I sometimes find myself having to “sell” Chapter 7 or Chapter 13 bankruptcy to people because they have been given so much information that is, for lack of a better word, just wrong. Below is an article that I found online that is right on point and, in my experience, 100% accurate. Read it carefully, and if you have any questions or are thinking about filing Chapter 7 or Chapter 13 bankruptcy in Maryland, call me. Most people have a negative association with the word bankruptcy. However, often what you heard is misleading and misinformed statements from people who are not well versed in bankruptcy law. Many very successful people and businesses have filed bankruptcy and have gone on to become very prosperous. Bankruptcy Will Ruin My … [Read more...]

Should I file for bankruptcy?

Making the decision to file (or not to file) bankruptcy is a big one. While getting a fresh financial start through Chapter 7 or Chapter 13 bankruptcy can be a lifesaver for some people, it's not the best solution for others. In order to make the best decision for your financial situation, make sure you learn about the different types of bankruptcy, understand what will happen to your debts and property, and consider alternatives to dealing with your debts. Here are some things to consider before you decide to file for Chapter 7 or Chapter 13 bankruptcy. You need to understand the different types of bankruptcy. Chapter 7 bankruptcy wipes out all of your debts, while Chapter 13 bankruptcy is a payment plan through the bankruptcy court to pay off some or all of your debts. Although the internet has a lot of good information, the best way to find out if bankruptcy is right for you is to call a Maryland bankruptcy lawyer and get answers to your questions. Usually it only takes a … [Read more...]