Will Bankruptcy Stop a Wage Garnishment?

Yes, filing Chapter 7 or Chapter 13 bankruptcy will automatically stop a wage garnishment. If it is a dishcargeable debt (credit card, repossession, medical bill, etc.), then it will be stopped for good. If it is a non-dishchargeable debt (most taxes, student loans, MVA debts), it will be stopped while the bankruptcy is pending (usually about 4 months for a Chapter 7), but then start up again after the bankruptcy is discharged. You can file bankruptcy before or during a garnishment. In other words, just because it has already started, that doesn't mean you cannot stop it. It stops as soon as you file your bankruptcy. In some cases, depending on how much money has already been taken from you and over what period of time, you can get your money back from the creditor after the bankruptcy is filed. If you are looking for a Maryland Bankruptcy law firm to help you file a Chapter 7 or Chapter 13 bankruptcy, call us. We are bankruptcy attorneys with a great deal of … [Read more...]

High Profile NBA Bankruptcies

I am a big NBA fan and I thought that this was interesting and would share it with you. High Profile NBA Bankruptcies Point guard Kenny Anderson earned an estimated $60 million during his NBA career after playing for nine different teams. He was married three times throughout that period, and the his first wife, Tami Akbar, walked away with $5.8 million and $8,500 a month in child support. Anderson was also supporting six other children, two other ex-wives, and was making monthly payments on his mother’s house. He also owned eight cars and an estate in Beverly Hills, was known for handing out $3,000 and $5,000 to friends and relatives and gave himself a $10,000-a-month allowance he referred to as “hanging out money.” Anderson filed for bankruptcy in 2005 listing his monthly expenses as $41,000. The player and his accountant were reportedly planning for bankruptcy years before it became official and Anderson now describes himself as "financially sound." Antoine Walker, who … [Read more...]

Glossary of Bankruptcy Terms

Bankruptcy terms can be difficult to understand.  Below are brief definitions of the terms used in this site and in the Bankruptcy Code. If you have any questions, please feel free to contact us. 410-766-4044. Adequate protection:Payment to a secured creditor to protect the value of the creditor's lien during the bankruptcy proceeding from loss due to depreciation or non payment of a senior lien. Adversary proceeding: A lawsuit filed in the bankruptcy court which is related to the debtor's bankruptcy case. Examples are complaints to determine the dischargeability of a debt and complaints to determine the extent and validity of liens. Assets:Assets are every form of property that the debtor owns.  They include such intangible things as business goodwill; the right to sue someone; or stock options.  The debtor must disclose all of his assets in the bankruptcy schedules; exemptions remove the exempt assets from property of the estate. Automatic stay: The injunction issued … [Read more...]

Debt Trouble Warning Signs

Think about this: Just because you can pay your minimum payments each month, does not mean you are financially fit. Low monthly minimum payments benefit the credit card company, the "minimum amount due" is cleverly calculated to keep you trapped in debt for your entire adult life. Do you really want to spend the best years of your life in debt?  Here are some of the warning signs that you have a problem. If you answer "Yes" to any of these questions you are probably already in financial trouble. Whether you realize it or not, you need to find out your options. Do you need your next paycheck to survive? Are you borrowing from "Peter" to pay "Paul"? Are you spending more than 20 percent of your net income on credit card bills? Are you dipping into your savings or retirement accounts just to pay your monthly bills? Are you using credit cards to pay for necessities like groceries because you don't have the cash? Do you have more than two or three major credit cards? Do … [Read more...]