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...]
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...]
I Need To File Bankruptcy and I live in Maryland…..What Do I Do?
Sort of like parenting, money management is one of those things that were never taught in school. We were taught to read, write and do some math problems that we will never have to use in real life, but we were never taught how to pay our bills and manage our finances, especially in difficult times. And our parents (at least mine didn't) brought us over to the kitchen table and said "hey son, let's go over my checkbook together and see how we can improve our finances. Unless you are actually in the business of helping people file for bankruptcy, there is no reason for you to have any idea what bankruptcy is all about. Fortunately, the internet has provided everyone a tool to research and read about bankruptcy, and at least give them a starting point to determine if it is the right thing to do, and if so, how to go about filing bankruptcy. If you are reading this article, you have already taken the first step. When people call me to discuss bankruptcy, they have alot of … [Read more...]
Filing Bankruptcy to Prevent Foreclosure
If you’re facing foreclosure, and you can’t seem to strike a deal with your lender, filing bankruptcy may be able to help. If you fall behind on your mortgage payments, your lender may take steps to foreclose on the property – meaning it may take back your home and sell the property at a public auction. The foreclosure process doesn’t happen overnight. In Colorado, a foreclosure typically starts after you fall behind on your payments for at least two months, and often three or four. This window of opportunity (commonly the reason behind a “strategic default”) will provide some time for you try alternate methods, such as loan forbearance, a short sale, or a deed in lieu of foreclosure. If you’ve already tried these options, filing bankruptcy may provide another option to avoid or stall foreclosure. Here are some examples of how filing for bankruptcy can help you – The Automatic Stay Delays Foreclosure When you file either a Chapter 13 or Chapter 7 bankruptcy, the … [Read more...]
Credit Card Bankruptcy
Credit Card Bankruptcy It’s no secret that the United States economy has been driven by consumer credit card spending. Credit card companies have spent billions of dollars each year aimed at convincing us to buy on credit. More than a billion credit card offers are mailed out each year in the United States each year. Solicitations often begin at the age of 18, when credit card company representatives swarmed colleges campuses and convinced financial inexperienced college students to overextend themselves and get into credit card debt. Credit card companies then continue to extend credit so that when students graduate and begin earning money all of their excess disposable income goes toward credit card minimum payments. In late 2009, many of the credit card companies increased many credit card interest rates to 29% or more, causing minimum payments to double or even triple. For people who had low balances, this was not a big issue. They had the option of not using their cards so … [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...]
Credit Card Debt Surges by $18.4 billion in second quarter
Americans added $18.4 billion to their debt load in the second quarter, a 66% increase from the debt they accumulated in the same quarter last year and 368% more than they tacked on in 2009, according to credit card research firm CardHub.com. In fact, the last time consumers charged up this much debt during this time period was in 2008 -- several months after the recession officially began and when credit card balances climbed by $25.2 billion. Despite the recent spending spree, the total amount of credit card debt consumers have accumulated is still significantly lower than in previous years. Total outstanding credit card debt as of July was $792 billion, down 18% from the September 2008 peak of $972 billion, according to data from the Federal Reserve. If current trends continue, however, consumers could find themselves even deeper in the hole. CardHub, which analyzed the consumer debt data from the Federal Reserve, estimates that consumers will run up about $54 billion more … [Read more...]
When an Ex-Spouse Files for Bankruptcy
Once of the darkest moments in anyone's financial life is when a debt you are not responsible for shows up on your doorstep because you have co-signed a loan. this is particularly distasteful when the person you co-signed with was once your spouse and is now your ex-spouse. The only thing that can make this situation worse is if your spouse is not just defaulting on payments, but goes ahead and files bankruptcy. When your ex-spouse files bankruptcy, if you hold any credit cards or joint debt with your ex-spouse, the creditors will come straight to you. If this happens, you will likely end up having to file for bankruptcy as well. At the Maryland Bankruptcy Center we file Chapter 7 and Chapter 13's bankruptcy's for consumers in Maryland. We have offices in Baltimore, Glen Burnie, Columbia, Hanover, and we have the ability to use office space and meet with client's in Annapolis, Baltimore City, Dundalk, Essex, Towson, Timonium, Pikesville, Catonsville, Silver Spring, Ellicott … [Read more...]
Comparing Chapter 7 to Chapter 13 Bankruptcy
To help you fully understand the difference between filing Chapter 7 Bankruptcy in Maryland and Chapter 13 Bankruptcy in Maryland, I will explain some of the major differences. In Chapter 7 Bankruptcy in Maryland, you ask the bankruptcy court to discharge most of the debts you owe. Those debts include credit card bills, medical bills, judgements and all unsecured debts. In exchange for this discharge, the bankruptcy trustee CAN (but will not in ALL CASES that we file) take any property you own that is not exempt (BUT ALL PROPERTY WILL BE EXEMPT OR WE WILL NOT FILE A CHAPTER 7). In Chapter 13 Bankruptcy in Maryland, you file a repayment plan with the bankruptcy court to pay back all or a portion of your debt over time. The amount you repay depends on how much you earn, the amount and types of debts you owe and how much property you own. Chapter 13 is most often used in Maryland when you are behind on your mortgage and facing foreclosure. Chapter 13 Bankruptcy in Maryland … [Read more...]
