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...]

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...]

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...]

A Credit Card Company Has Filed a Lawsuit Against Me, What Do I Do?

This is one of the most commonly asked questions by people who are considering bankruptcy.  At the Maryland Bankruptcy Center we eliminate more credit card debt than nearly every other law firm in the state of Maryland.  Here is how it works. If you have an outstanding balance on a credit card, you will initially get phone calls from the credit card company.  Usually they will lie to you and tell you that if you don’t pay your wages will be garnished or your property will be taken immediately.  Not true. Usually, credit card companies in Maryland wait about 6 months to a year before they actually file a lawsuit against you.  And even then, the only way that they can garnish your wages or attack your bank account is to obtain a judgment against you, wait for the appeal period to expire, and then file more papers with the court.  In EVERY case, it takes the credit card company at least 120 days AFTER they file a lawsuit against you to be able to garnish your wages or attack your bank … [Read more...]

Filing Bankruptcy is Good For Your Health!

I recently came across this article and wanted to share it with you on my website. As a bankruptcy lawyer practicing bankruptcy in Maryland for more than 20 years and handling over 2000 Chapter 7 and Chapter 13 cases, I can tell you first hand that filing bankruptcy will improve your health. The relief I see when people first come into my office and learn their rights is amazing, it's like a giant burden lifted off the client's shoulder immediately. Sometimes just knowing your rights is all that you need, at least you know that you can be helped. Call us today for a free consultation so that we can not only improve your financial situation, but improve your health As we say: FILE TODAY...........SMILE TOMORROW! HERE IS THE TEXT OF THE ARTICLE If you find yourself deep in debt and are desperately trying 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 … [Read more...]

Can I Still File Bankruptcy If My Wages Are Already Being Garnished?

Simple answer, yes! At the Maryland Bankruptcy Center we do a great deal of online promotion and receive referrals from friends, family and former client's every day. I probably spend at least 2 hours per day just giving out free consultations on the telephone. Sometimes people come in and file, sometimes they don't, but the experience that I get of understanding the every day questions that people are facing is invaluable. I get it. Although I am not going through what you are going through, I talk to enough people every day so that I really understand your problems, and I have the ability to solve them for you. A frequent question asked by callers is "Can I still file Chapter 7 or Chapter 13 Bankruptcy in Marylnad if my wages are already being garnished or if my bank account has already been frozen.?" Many people are led to believe, usually by the creditors, that once wages are being garnished, or a judgment has been entered, it's too late and bankruptcy will not protect … [Read more...]