Posted on September 15, 2022 in Bankruptcy and Car Equity

If you are struggling to pay your bills, you certainly are not alone. In fact, according to Fox Business, half of American adults have had trouble paying credit card bills, medical debt, student loans or other outstanding balances during the past year.

Thankfully, Chapter 7 bankruptcy may give you a comparatively simple option for doing away with much of what you owe. If you take advantage of this type of bankruptcy, though, you must sell some of your assets to pay your creditors. This might mean getting rid of your car, truck or SUV.

Your need for reliable transportation

You obviously need access to reliable transportation for your commute to work and other places. Put differently, if you cannot drive, you may lose your job and incur even more debt. Regrettably, Maryland does not have a standalone automotive exemption in its bankruptcy laws. You may not be entirely out of luck, however.

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 Posted on September 02, 2022 in General Bankruptcy Topics

If you are a parent, you may have thought your financial obligation to your children would end when they became adults. Still, according to Prudential, roughly half of American adults say they are struggling financially. If your children are in this group, they may ask you for money or other financial support regularly.

While there is certainly nothing inherently wrong with helping your adult children from time to time, you do not want to overextend yourself. This is especially true if you have retired from your job, as you are likely living on a fixed income.

Many parents are sacrificing more nowadays

According to reporting from CNBC, 45% of parents say they have given money to their adult children during the last couple of years. Alarmingly, nearly 80% of these individuals had to make personal sacrifices to offer financial assistance to their kids. That is, most parents have had to scrimp to make their loans or gifts possible.

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 Posted on August 23, 2022 in Chapter 13 Bankruptcy

Bankruptcy is often a tool that may help you get out of a tricky situation. Your situation is unique, which means you need to understand which bankruptcy option fits your needs the most.

Chapter 13, as the United States Courts describes, is an option that offers you the opportunity to pay off your debts while still saving your home from foreclosure. Knowing what to expect over the coming months may help you organize your schedule and financial situation.

Mandatory credit counseling

Before your application for Chapter 13 bankruptcy, you must have a certificate of credit counseling. You earn these from courses approved by the Department of Justice U.S. Trustee Program. These courses advise you on how to manage your debt and help you draft a potential debt repayment plan.

Initial paperwork filing

With your certificate in hand, you need three schedules and a statement:

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 Posted on August 16, 2022 in General Bankruptcy Topics

Most people know that divorce puts additional stress on a person's finances. This could lead to bankruptcy during an especially challenging time.

A few facts could help a person cope when faced with both marital and financial difficulties.

Handling both at the same time

Information from Experian emphasizes the difficulty of filing legal motions for divorce and bankruptcy simultaneously. Most court jurisdictions will place precedence over one action or the other, so for practical purposes, the two will not happen at the same time. Many courts will suspend the bankruptcy proceedings until the completion of the divorce.

This enables the courts to apportion the marital debts and assets to each party. Another practical consideration involves the sheer difficulty of undergoing two significant court cases during the same time period. This could lead to stress and impact relationships and work obligations.

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 Posted on August 11, 2022 in General Bankruptcy Topics

Dealing with debt collectors is not the most fun thing. It becomes even more harrowing when up against a debt collector who refuses to abide by the Fair Debt Collection Practices Act (FDCPA).

The ways in which a debt collector may avoid abiding by the FDCPA can differ in many ways. What does harassment in specific tend to look like?

Overt debt collector harassment

The Consumer Financial Protection Bureau takes a look at debt collector harassment. This is an umbrella of actions banned by the aforementioned FDCPA, though of course, not every debt collector will abide by the act.

Harassing acts fall under an umbrella definition that generally speaks of anything that causes the target to feel anxious, unsafe, afraid or other such negative feelings due to actions taken or words spoken by the debt collector.

This can include more overt threats, such as directly threatening a family with eviction if they do not repay their debts or even threatening someone within the household with bodily harm.

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 Posted on August 05, 2022 in General Bankruptcy Topics

Getting behind on your bills can be incredibly stressful. Concerns about keeping your home, your car and your way of life can keep you up at night.

Creditors who constantly attempt to collect on bills you have no way to pay do not help lower your stress. One of the benefits of filing for bankruptcy is that creditors cannot continue to harass you.

What is an automatic stay?

A stay is a court order that forbids creditors from taking any action to collect on debts while the stay is in force, including foreclosure, garnishments, lawsuits or any other collection activity. When you file for bankruptcy, the court enters a stay automatically as part of the filing process, hence "automatic stay".

How long can an automatic stay be in effect?

In the state of Maryland, an automatic stay can last anywhere from 30 days to five years. Generally speaking, the stay lifts when the bankruptcy process is complete.

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 Posted on June 14, 2022 in General Bankruptcy Topics

If you struggle to stay on top of your bills every month and feel like you will never get out of debt, bankruptcy may be a helpful option. There are two types of consumer bankruptcy, which include Chapter 7 and Chapter 13, and filing may help you move forward financially.

The Federal Trade Commission states that filing bankruptcy could help stop repossessions, foreclosures, utility shut-offs, wage garnishment and other debt-related activities. Although bankruptcy is helpful for many, it can damage your credit score, which is why you will want to take steps to rebuild your credit after filing.

1. Keep an eye on your credit score

Check your credit score and review your credit report on a monthly basis. While your bankruptcy filing will stay on your credit report for several years, you should still negate any errors or issues on your reports to ensure an accurate reflection of your creditworthiness.

2. Use debt carefully

You may feel hesitant to use debt after you finalize the bankruptcy process but doing so carefully can help you rebuild your credit. Try using a secured credit card or ask someone to co-sign on a loan application.

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 Posted on June 14, 2022 in Bankruptcy and Car Equity

Maryland residents may ask the court to exempt their vehicles when filing for bankruptcy. Your car's value and the amount left on an auto loan may determine whether you could keep it. The type of bankruptcy you file may also affect your ability to protect your vehicle.

Section 11-504 of Maryland's Courts and Judicial Proceedings code allows residents to exempt personal property up to $5,000. If your car's equity does not exceed $5,000, bankruptcy may not affect it. You may find whether your vehicle's value falls within the exemption limit by subtracting your loan balance from your car's market value. If the dollar amount does not exceed $5,000, you may keep your car.

Keeping vehicles with loans in Chapter 7 bankruptcy

As noted by Experian.com, bankruptcy petitioners must show that they have not fallen behind on car payments. A delinquent auto loan may result in repossession, and bankruptcy may not protect it. If you could catch up on past-due payments, however, you may keep your vehicle.

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 Posted on May 27, 2022 in General Bankruptcy Topics

Collection calls may at first cause a nuisance, but they may soon become a bigger issue. When debtors want to collect, they may take legal action against you. If this is where you find yourself, you may want to consider filing bankruptcy.

Unlike years ago, the legal act of declaring bankruptcy no longer carries a negative perception. While you may not want to consider it, if your debt situation is dire enough, it may serve as a viable option to help you get a fresh start. Your debt may have from one of these common scenarios many others face.

What does the court consider unsecured debt?

A common source of overwhelming debt comes from unsecured accounts. This means that a creditor gave you a line of credit without requiring collateral. If you have a credit card, you have an unsecured line of credit. Credit card debt is on the rise and a leading contributor to needing to declare bankruptcy as late fees mount and interest rates rise.

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 Posted on May 17, 2022 in General Bankruptcy Topics

When you file for bankruptcy, you trigger an "automatic stay," your protection against creditors and others who wish to collect money from you.

However, the automatic stay is not all-powerful. Here is a look at what it can and cannot do for you

Stops wage garnishment

An automatic stay will stop all wage garnishment proceedings. If you have multiple garnishments, you can begin taking home your entire salary once the automatic stay is in place.

Halts foreclosure

Perhaps you worry about the threat of foreclosure. Even if your financial institution has already begun the process, the automatic stay will put an immediate stop to it. Keep in mind that once the stay is lifted, the foreclosure process may resume. Consider filing Chapter 13 to get around this activity.

Delays disconnection of utilities

Is the utility company preparing to turn off your service because you are behind in your payments? The automatic stay can prevent this from happening for at least 20 days, allowing you time to pay your bill.

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