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...]
Record Year for Bankruptcy’s So Far
Bankruptcy filings in June declined for both individuals and businesses. Still, bankruptcies so far this year are 9 percent ahead of last year's monthly average, according to data compiled from court records by Automated Access to Court Electronic Records. If the pace continues for the next six months, 2010 will have the most bankruptcies since 2005 when Congress made bankruptcy less available for individuals. Through June, there were about 795,000 bankruptcies of all types in the U.S. The 133,800 filings in June were the second fewest this year at a daily rate. There were over 7,100 commercial filings in June, an 11 percent decline on a daily basis from the average in 2009. Chapter 11 filings were 7 percent fewer than the 2009 monthly average, according to the report from AACER, a service of Oklahoma City-based Jupiter ESources LLC. Nevada, Georgia and Tennessee continue leading the nation in per capital bankruptcies. The states where filings are growing fastest are Hawaii, … [Read more...]
Medical Bills Drive Americans to Bankruptcy
I saw this article online today. A few months ago I spoke about this on television. Very interesting stuff. Call or e-mail me if you need a Maryland Bankruptcy lawyer/attorney to file bankruptcy for you. Medical Bills Drive Americans Into Bankruptcy As Many Struggle To Pay Debt The Huffington Post William Alden First Posted: 8/19/11 11:25 AM ET Updated: 8/19/11 11:26 AM ET Those payments include medical bills, which increasingly are pushing Americans into personal bankruptcy, the New York Times reports. About a fifth of people seeking financial counseling this year and last said debt related to medical bills was their main reason for deciding to enter bankruptcy -- up from as low as 12 percent in the previous two years -- according to counseling agency CredAbility, the NYT reports. A bitter combination of forces has left many Americans unable to meet the obligations that just a few years ago would have been manageable. Payrolls shed millions of jobs in the months after … [Read more...]
Medical Bills and Credit Reports
A member of Congress has proposed a bill that would erase medical bills from credit reports. I think that is a great idea, for many reasons. See the article below, it is very interesting: New Bill Proposed Would Remove Medical Collections From Credit Reports In June 2011, a bill titled the Medical Debt Responsibility Act was introduced to Congress by a bipartisan group. This bill would require the three national credit reporting agencies, Equifax, Experian and TransUnion, to remove medical collection records of $2,500 or less from credit reports within 45 days of being paid or settled. Reasons In Support of The Bill 1. Medical bills are sent to collections too quickly by medical professionals 2. Collections can have a major impact on interest rates 3. To improve credit scores so that Americans can buy homes and stimulate the economy 4. Medical bills are not considered a planned event and are usually a necessity or an emergency 5. Some medical bills are disagreements … [Read more...]
Bankruptcy Is Not For Liars and Cheaters
I saw this article online today and thought it was very good, so I am sharing it with you: Bankruptcy is NOT for Liars, Cheats, Crooksby Jill Michaux, Kansas Bankruptcy Attorney · Posted in Bankruptcy Basics,Discharge of Debt inShare3 Bankruptcy is not for liars, cheats and crooks. Debt discharge is reserved for honest, but unfortunate, debtors who need a fresh start in life. If you do not want to come clean and make a full and honest disclosure of all your financial affairs, bankruptcy is not for you. Only people who tell all there is to tell about their money and property and answer all questions truthfully and completely, no matter how embarrassing it is, and disclose all their property are eligible for a discharge of their debts. If you want to lie, hide and cheat, forget about it. Or, if you have lied to your creditors in the past and your lenders have relied on your lies when loaning you money, you will not be rewarded with a discharge of your debts … [Read more...]
Bankruptcy – No Guilt Necessary
People from all around the entire Baltimore and Washington areas call us each day to discuss their bankruptcy options. Many time, people begin the conversation to explain why they need to file bankruptcy and for how long they have tried to put it off. They often feel guilty about it, feeling as if they are doing something wrong by contacting a lawyer for bankruptcy help in Maryland. Well, I am here to tell you that you are not. Bankruptcy relief has been a foundation of the laws in the United States since the 1700's. As a tax paying citizen, you have the absolute right to file for bankruptcy relief. Yes, there are certain people who take advantage of the laws and are fraudulent. That's a very small percentage, and usually those people get caught anyway. The vast majority of people who file are work people who run into problems such as unemployment, medical problems, divorce, addiction and sometimes even just bad spending habits. I am glad that you have taken the … [Read more...]
Bankruptcy Statistics
The Number of Bankruptcies are Falling The number of national consumer bankruptcies have fallen 6% in the first quarter of 2011. There were 340,012 consumer bankruptcy filings from January 2011 to March 2011, which was down from 363,215 last January 2010 to March 2010. This is according to the American Bankruptcy Institute using data from the National Bankruptcy Research Center. There were 144, 657 filings in March 2011, up 41% from February’s total filings of 102,686, but down from March 2010 when there were 149,268 filings. The total number of filings in 2010 was the highest since 2005, when there was a rush to file before BAPCPA went into effect that October. Even consumer credit outstanding has fallen the last two years according to data from the Federal Reserve. “Though bankruptcy filings are still elevated, consumers continue to take steps to reduce debt levels and shore up their finances,” said ABI Executive Director Samuel J. Gerdano. “As a result, we now … [Read more...]
