Category Archives: Baltimore

Baltimore bankruptcy information, including debt settlement, credit counseling news and more.

What is a Zombie Foreclosure?

In the past, we talked about vampire foreclosures, which is when a bank seizes a property, while the owners of the home still live in it. This week we will discuss another monster of a topic called zombie foreclosures. These foreclosures sometimes happen due to a misunderstanding. For instance, a homeowner receives a foreclosure notice. She or he assumes that the lender will take over the property, so he or she collects his or her belongings and moves away, leaving the property behind. Some people leave their property when the foreclosure process takes too long. The zombie foreclosure comes into play after the homeowner has packed his or her bags and left and the foreclosure, for whatever reason, ends up being cancelled. This means the sale never took place and that the house remains in the vacated homeowner’s name. These properties can often be left untouched and fall into disrepair,…
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The Automatic Stay: How Does It Halt Lawsuits?

Did you know that a personal bankruptcy filing induces an automatic stay, preventing collection attempts and halting lawsuits? When you file for Chapter 13 or Chapter 7 bankruptcy, the automatic stay serves as an injunction that is meant to immediately halt the actions of creditors. This is especially useful in cases where a person may be behind on housing payments, as it could protect a debtor’s home from foreclosure. Additionally, the automatic stay prevents creditors from initiating or continuing lawsuits against the debtor, garnish wages or otherwise demand payments from a debtor. Occasionally, you will see the automatic stay used as a tactic in personal injury cases. Recently, the Associated Press reported that a wrongful death lawsuit stemming from a church van crash in Illinois was halted when the pastors involved in the litigation filed for bankruptcy. According to the AP, the case will not be able to move forward…
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Does Bankruptcy Eliminate Back Taxes?

If you are struggling with back taxes, you should contact our bankruptcy lawyer, who can discuss how a filing could help you eliminate your debt. Most federal and state taxes are not dischargeable in bankruptcy. However, there are instances when you can discharge certain taxes through a Chapter 7 filing if you meet certain requirements. Among these criteria: The debt is for income tax and not other forms of taxes like payroll or sales tax The IRS or state you live in assessed the tax at least 240 days prior to your filing Your tax return for the debt was filed at least two years prior to the bankruptcy filing Your tax return for the debt was due at least three years prior to the bankruptcy filing Keep in mind, taxes like FICA, used for purposes like Social Security, are non-dischargeable, as are taxes related to gifts and estates. The…
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