Blog about Filing Bankruptcy in Washington DC and Maryland

What Are the Possible Benefits of Filing for Chapter 7 Bankruptcy?

Bankruptcy was created to help people navigate financial difficulties by giving them a chance to start from scratch. This start comes with a negative impact to your credit, but this drawback is generally worth it. If you find yourself in the position where you’re considering Chapter 7 bankruptcy, don’t let the possible hit to your credit deter you. There are plenty of benefits of filing for bankruptcy, as well. The Possible Benefits of Bankruptcy An end to phone calls – Being in debt comes with a daily bombardment of calls from creditors. Filing for bankruptcy gives you refuge from these phone calls, because it makes it illegal for creditors to call you with the intent of threatening repossession, foreclosure, or wage garnishment. Pardon for negative account reports – Any credit reports with late payments and high credit balances are typically wiped clean in bankruptcy. Debts go from being reported as…
Read More »

Why Would I Want to Reopen a Bankruptcy Case?

After filing for bankruptcy and receiving a discharge, the court will close your case. Sometimes, it may even close your case without issuing a discharge. If you need to reopen your case, you may be able to, so long as you have a valid reason to do so. Even though you may be able to later reopen a case, you should always take filling out bankruptcy forms seriously. If not, mistakes made can come back to haunt you by prohibiting you from getting your discharge or causing your case to be dismissed. That said, here are some situations where you might want to reopen a bankruptcy case. Common Reasons to Reopen a Bankruptcy Case Forgot to file a mandatory certificate – The credit counseling session is a mandatory requirement when filing for bankruptcy. The United States Trustee’s Office must approve this, and it is accompanied by a debtor education course….
Read More »

4 Reasons You Shouldn’t Ignore Debt Collectors

There are several likely outcomes that stem from trying to ignore debt collectors, and none of them are advantageous. To put it frankly, ignoring your debt won’t make it go away. Here are the most likely scenarios that ignoring your debt will lead to, though. Why You Shouldn’t Ignore Debt Collectors Your credit suffers – A collection account is likely to appear on your credit reports whether you work with debt collectors or not. If you attempt to speak with a collector, however, you will at least have the chance to present your side of the story and maybe work something out with them. Your debt grows – Failure to pay your debts could result in the collector adding interest and collection costs to your debt. It all depends on the contract you agreed to when you took out the loan or signed up for the given credit card. Generally,…
Read More »