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...]
Fixing Credit Report Errors
Why is it that credit reporting companies have so much control over our lives? One false report on your credit report could cost you the ability to buy a house, car or to even obtain a credit card. Is that fair? No way. Is there anything you can do about it? Yes, there is. It's not easy, and, frankly, it's a pain in the neck. However, you can fix mistakes on your credit report if you need to, and here's how. The first thing you need to do is order a copy of your credit report. The three major national credit bureaus are: Equifax, PO Box 740241, Atlanta, GA 30374-0241; (800) 685-1111. Experian, (formerly TRW), PO Box 2002, Allen, TX 75013; (888) 397-3742. Trans Union, PO Box 1000, Chester, PA 19022; (800) 916-8800. When ordering a copy by mail, make state your name, current address, addresses where you have lived for the last five years, your social security number, date of birth and a include copy of your driver’s license. You are entitled to a free copy of … [Read more...]
The Chapter 7 and Chapter 13 Bankruptcy Process
I want to give you all an idea of the bankruptcy process. I'll try to keep this simple and cover only the "normal" case and not cases involving objections from creditors and other complications. Once you've chosen an attorney, provided all the documentation requested and paid the required fees, it's time to file your case. If you are in a Chapter 7 case, then the procedure is the case gets filed with the Clerk's office in your jurisdiction. Upon the filing, an automatic stay goes into effect. This stay immediately stops your creditors from doing any collection proceedings, including court-ordered garnishments, license suspensions, phone calls, billings, etc... About 4-6 weeks after your case is filed, you will have to attend a "meeting of creditors" or "Section 341" meeting. This is a hearing that debtors are required to attend. Typically, if you've hired a full-service bankruptcy law firm such as ours, an attorney will be at your hearing with you. An interim trustee appointed by the US … [Read more...]
Ten Bad Habits
I was searching the web today and I came across a very interesting and informative article which relates to bankruptcy. It was called Ten Bad Habits That Lead to Bankruptcy. Many consumers in Maryland with high credit card debt could have taken steps to prevent it. At the Maryland Bankruptcy Center we will not only file your personal Chapter 7 bankruptcy for you but we will also give you tips on how to stay out of financial trouble in the future. Call or e-mail us anytime for a free consultation. The ten bad habits are: 1) Misusing Balance Transfers - All of us have found offers for new credit cards that provide a "teaser" rate. "Transfer balances and pay no interest for a year" is a common sales pitch. While it can be a good idea to manage debt by taking advantage of these types of offers, you still have to be disciplined and concentrate on paying down the debt. The common mistake is that the person continues to use the card and creates new debt. 2) Not Checking Credit … [Read more...]
Foreclosures in Maryland
Maryland’s courts adopted a rule to make it easier for homeowners in foreclosure proceedings to challenge lenders’ documents that they believe are fraudulent. The rule, approved by the Court of Appeals of Maryland today, can shift from homeowners to lenders the burden of proving documents are legitimate. Hundreds of inaccurate or fraudulent affidavits have turned up in Maryland foreclosures, Alan Wilner, chairman of the Court’s Standing Committee on Rules of Practice and Procedure, told the court’s six-member panel. Governor Martin O’Malley had asked the court’s chief judge to suspend foreclosures for 60 days to ensure people are not wrongfully thrown out of their homes. Robert Bell, the chief judge, said he didn’t have that authority and suggested that the rule be changed instead. The rules committee has been “scrambling to find a way to deal with this national calamity,” Wilner told the panel. Up to now, the courts have assumed the accuracy of the affidavits. … [Read more...]
Why do we call bankruptcy Chapter 7?
Very few people know why the type of personal bankruptcy that eliminates a persons debts is called CHAPTER 7. Well, here's the answer. There is huge volume of books that contain all of the laws that our Federal Government passes. Those books are called the United States Code. That Code has TITLES, and within those TITLES are CHAPTERS. TITLE 11 of the United States Code is all about bankruptcy, and is sometimes called by bankruptcy code. Within TITLE 11 is Chapter 7, which is called the "Liquidation" section of TITLE 11 of the United States Code. Chapter 7 Liquidation means that in exchange for liquidating all of your property (with exemptions that usually means that you get to keep everything you own), you are permitted to discharge, or eliminate your unsecured debts in Chapter 7. Chapter 13 and Chapter 11 are other Chapters of TITLE 11 of the United States Code, and they will be discussed elsewhere. Click below if you would like to see all of Chapter 7 as actually … [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 automatically … [Read more...]
Personal Bankruptcy
If you’ve recently found yourself buried under a pile of debt, you’ve probably spent some time researching ways to dig yourself out. Most likely, filing for personal bankruptcy did not sound like the most appealing choice. However, like visiting the dentist or and eating spinach, filing for bankruptcy can actually be quite good for your health, financially. Like most tools that aid in personal finance recovery, the more you learn about bankruptcy, the more comfortable you may feel wielding it as a debt-reducing tool. The following are some important things to know about personal bankruptcy: What Will the Neighbors Say? While many people think bankruptcy carries some stigma, the fact is that more than 1.5 million Americans filed for bankruptcy last year. And these people stretched across all social strata—from doctors and corporate executives to plumbers and house cleaners. In addition, according to a recent Harvard University study revealed that most bankruptcy filers … [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...]
