Monday, September 21, 2020

HOW WILL BANKRUPTCY AFFECT MY CREDIT?


Many people fear that, because a bankruptcy is referenced on their credit reports, the bankruptcy has a negative impact on one's ability to borrow. Obviously, a bankruptcy is not a positive mark on one's credit, but you have to consider your whole credit picture. By the time somebody files a bankruptcy, his or her credit report usually looks pretty bleak. The bankruptcy cleans up past problems and allows you to start building your credit again.

If you have income, it is often possible to get credit cards and car loans shortly after your discharge. It is even possible to get a home mortgage after as little as one year following a discharge. Many of these same people would not have been able to obtain this credit without getting rid of their old debt by filing for bankruptcy.

Sunday, September 20, 2020

WHAT TO DO IF A BILL COLLECTOR CALLS

Many consumers who are behind on their bills dread the thought of telephone calls from collectors. Bill collectors can be intimidating, but no consumer should live in fear. After a person files for consumer bankruptcy, these calls are not allowed. If you follow these rules, you can answer your telephone with greater confidence even before filing for bankruptcy.

Saturday, September 19, 2020

10 Myths About Bankruptcy

Most people have at least some wrong information about bankruptcy. Irrational fears hold people back from utilizing this helpful process. We hope that by dispelling some of these widely held myths, we can help you to determine whether bankruptcy is the right course for you. The initial consultation with a bankruptcy attorney is free.

Friday, September 18, 2020

THE BANKRUPTCY PROCESS


At your initial consultation, you will need to provide us with some basic information such as information on your debts (including your credit card debt, any lawsuits, foreclosures or repossessions, tax, student loans, or medical bills) and information about property you own (bank accounts, real estate, cars, insurance policies, retirement accounts, etc.). After reviewing this information with you, we can discuss your finances and concerns, and we will propose a recommendation for action.

Once we are hired to help you, you may refer all creditors to us and they will almost always stop contacting you.

If you decide to file for bankruptcy, we will then prepare a Petition for Bankruptcy from the information you provided, and we will have you review it carefully. If you are filing a Chapter 13 bankruptcy, we will prepare a Chapter13 plan as part of the Petition; this plan sets forth a monthly payment amount to be distributed to your creditors over a period of time.

After you sign the Petition, we will file it with the Bankruptcy Court, and a trustee is appointed. At this point your creditors must stop harassing you. Any contact from them can be referred to your attorney. Filing a Bankruptcy Petition also stops any lawsuits, foreclosures, garnishments and attachments.

Next, the Court sets a date for a creditors meeting, and notifies your creditors. The creditors meeting takes place approximately one month after filing. This is usually a brief, informal hearing which we will attend with you. The trustee will question you regarding your assets and your outstanding debt. Your creditors can attend too (however, most times they do not).

If you are filing Chapter 13 bankruptcy, the trustee reviews your plan at the creditors meeting to ensure it is feasible. A confirmation hearing is then held a few weeks later (which you usually do not need to attend), where the Court determines whether it approves your Chapter 13 plan. Then, you or your employer will make monthly payments in accordance with your plan, which the trustee distributes over a set period (usually between three to five years).

In a Chapter 7 bankruptcy, your case will generally be discharged after approximately three months. You will receive a Notice of Discharge from the Court eliminating your debts. Under a Chapter 13 bankruptcy, the Court issues a discharge once you have made all your payments. After discharge, creditors are prohibited forever from collecting these discharged debts. 

Thursday, September 17, 2020

FREQUENTLY ASKED QUESTIONS ABOUT BANKRUPTCY

What Is the Difference Between Chapter 7, Chapter 11, and Chapter 13?

If you are a business or individual and file for Chapter 7 bankruptcy, a trustee is appointed to liquidate your assets and distribute any excess to creditors. While debts will be discharged, if you are an individual you may have to sell some of your property if your assets exceed the exemption amount, with the proceeds distributed to your creditors. In Maryland, the exemption amount is around $12,000 for an individual. This amount is doubled for married couples filing jointly.

Chapter 11 is a reorganization. If you are a business you can operate your business while you develop a play of reorganization. Individuals are eligible for Chapter 11 and, in some cases, it makes sense to file a Chapter 11 rather than a Chapter 7 or Chapter 13.

Chapter 13 provides repayment plans for individuals with a regular income. You set up a three- or five-year schedule with your creditors. Chapter 13 bankruptcy remains on your credit report for seven years.

HOW WILL BANKRUPTCY AFFECT MY CREDIT?

Many people fear that, because a bankruptcy is referenced on their credit reports, the bankruptcy has a negative impact on one's ability...