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...]
How Long Does a Chapter 7 Maryland Bankruptcy Case Take?
Typically, chapter 7 bankruptcy cases last between three and four months from the date the case is filed. The preparation for a chapter 7 bankruptcy case can be anywhere between one day and many months depending on a number of factors, including attorneys fees, document readiness etc. This post will deal with the chapter 7 bankruptcy timeline after filing a case. For questions about what it takes to prepare a chapter 7 bankruptcy case, consult a bankruptcy attorney. Rough Chapter 7 Bankruptcy Case Timeline: Day 1: Case Filed Chapter 7 bankruptcy cases are filed electronically by a bankruptcy attorney, however, before this occurs, you will need to visit with your attorney to sign your petition and schedules after a thorough review. Soon after filing, your case will be assigned to a trustee and you will learn the date of your meeting of creditors (also called the “341 meeting”). Day 30-40: Meeting of Creditors Approximately thirty to forty days after the case has been filed, … [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...]
Bankruptcy Filings May Hit 5 Year High in 2011
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...]
Secured v. Unsecured Debts
As a Maryland bankruptcy attorney I have found that many of my clients have misconceptions about which types of debts can be discharged in bankruptcy. I feel every consumer should be educated about which types of debts can be discharged before deciding to file for bankruptcy. Secured vs. Unsecured Debts I have found that a large portion of people do not know the difference between a secured debt and unsecured debt. Secured debts are those that have assets put up as collateral against the loan. Defaulting on secured debt leaves the asset legally available for seizure and liquidation by the creditor in efforts to satisfy the debt owed. The most common types of secured debts are mortgages and car loans. Some personal debts are secured debts if a person has agreed to use an asset as collateral for the loan agreement. Unsecured debts are those that do not have any assets secured as collateral. If a person defaults on an unsecured debt, the creditor has no legal claim over the asset … [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...]
If I file for bankruptcy, will I lose my property?
Simple answer. No. If you file for Chapter 7 bankruptcy in Maryland, you will not lose all of your proprety, in fact, you will not lose any of your property. This is possibly one of the biggest misconceptions about bankruptcy in Maryland. When you file, you can protect a certain amount of property and still eliminate all of your debt. In Maryland, you can keep $21,650.00 of equity in your home (which is alot, because most houses are under water right now), and an addtional $12,000 of various other property. Property is valued at yard sale value, so most people do not have more than $12,000 worth of property that they could sell at a yard sale. If you are married, the amount doubles. Most pension and 401(k) plans are completely exempt, which means you can keep them all. If you have any questions about Chapter 7 or Chapter 13 bankruptcy in any part of Maryland (Baltimore, Glen Burnie, Columbia, Towson, Silver Spring, Rockville, Catonsville, Dundalk, Essex, Annapolis, … [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...]
