Will Bankruptcy Stop a Wage Garnishment?

Yes, filing Chapter 7 or Chapter 13 bankruptcy will automatically stop a wage garnishment. If it is a dishcargeable debt (credit card, repossession, medical bill, etc.), then it will be stopped for good. If it is a non-dishchargeable debt (most taxes, student loans, MVA debts), it will be stopped while the bankruptcy is pending (usually about 4 months for a Chapter 7), but then start up again after the bankruptcy is discharged. You can file bankruptcy before or during a garnishment. In other words, just because it has already started, that doesn't mean you cannot stop it. It stops as soon as you file your bankruptcy. In some cases, depending on how much money has already been taken from you and over what period of time, you can get your money back from the creditor after the bankruptcy is filed. If you are looking for a Maryland Bankruptcy law firm to help you file a Chapter 7 or Chapter 13 bankruptcy, call us. We are bankruptcy attorneys with a great deal of … [Read more...]

Can Chapter 7 Bankruptcy Help Me?

I saw this article online and thought it was excellent, please read if interested in learning about or filing Chapter 7 bankruptcy, I couldn't have said it any better myself. Can Chapter 7 bankruptcy help? When most people think of filing for bankruptcy, they think of chapter 7 bankruptcy. Chapter 7 bankruptcy, often referred to as “straight bankruptcy,” is a much faster process than its slower cousin chapter 13 bankruptcy. Depending on income, chapter 13 bankruptcy lasts between 3 to 5 years, whereas a typical chapter 7 case is open and shut within 4 months. Within that short time frame, chapter 7 transforms the debtor’s financial life from a cluttered mess, to a clean slate. Here are 5 important ways that chapter 7 bankruptcy can help if you find yourself in financial distress. 1. Eliminate unsecured debt. This is the most obvious way that chapter 7 bankruptcy helps consumers. Filing for chapter 7 bankruptcy wipes out high interest credit card debt and medical bills. … [Read more...]

Why Filing Bankruptcy is Better Than Debt Credit Counseling

I saw this article today and had to pass it along.  It is very true and I couldn't have said it better myself. Is Credit Counseling a Step in the Right Direction? Credit counseling most often involves consolidating outstanding debts as much as possible and then developing a negotiated repayment plan for a reduced payment over time to all of your creditors. Credit counseling is often a first step taken by those who have significant debt due to varying unforeseen circumstances. Each Creditor Will Have Different Requirements Each creditor has a different idea of what should be in the repayment plan and therefore will have different requirements. The catch is that a repayment plan must be approved by all the creditors, which takes time. What you may not know is that credit counselor staff is often working for the major credit card companies, in their best interests not yours. This is because the credit consolidation agencies get a cut of all the funds they recover that are owned to the … [Read more...]

Information About Consumer Bankruptcy

The American Bankruptcy Institute is an incredible organization which helps educate bankruptcy professionals and consumers with regard to current bankruptcy news and information. It's contributors are some of the most well-educated bankruptcy professionals in the country. Although I have been a Maryland bankruptcy lawyer for almost 20 years, I learn something new every day. I am thankful to the people who post such great information for all of us to see. An especially interesting article that I think you might enjoy is as follows: Should I file for bankruptcy?Whether to file for bankruptcy is a very personal decision. Some people find it helpful to file a bankruptcy case when they cannot pay their bills and they do not anticipate having the ability to pay their bills in the near future. Often, people file because their financial situation is causing them emotional distress or depression, or because they would like to free themselves of debt now, if legally allowed, and have … [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 written … [Read more...]

What is Personal Bankruptcy Discharge?

What is a bankruptcy discharge? The typical consumer files a bankruptcy case in order to obtain a "discharge" of overwhelming debt. An unfortunate word that is used to describe what for many is a life changing "event". Why? When a debt is "discharged", the obligation of the debtor to pay it, no longer exists. The obligation is simply gone...poof. It is government intervention in the realm of private contract relationship at it's "finest", and with some careful planning and preparation, it works like a charm. Now, having said that, this powerful discharge has it's limits. It isn't perfect. 1. It doesn't deal with every debt. some debts cannot be "discharged" by statute, like child support, newer income tax debt, spousal maintenance etc. 2. Even though the personal liability may no longer exist as a result of the "discharge", liens recorded against the debtor's property, may survive the bankruptcy unless they are modified or removed. 3. You can't get very many of them too … [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 … [Read more...]