Washington DC and Maryland Bankruptcy eNewsletters
How to Reorganize Your Finances After Bankruptcy
A man owned his own business, had a house, three 3-year-olds and a lot of debt to go with it. So much debt in fact that it totaled in the millions from a failed business. So he hired an attorney and asked the attorney to do everything possible to prevent him from filing bankruptcy. Then, the creditors started calling and even visiting the man’s current business. It got to the point where his wife was afraid to open the door. He had already taken out a second mortgage on the house and he was still not making ends meet. Finally, the attorney gave the man a choice. He could take the $1,000 a month that he brought home every month and give it to the creditors or he could buy groceries for his family. Even though it wasn’t an easy choice, the man filed Chapter 13 bankruptcy and his debts…
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Do I Need to Report a Bankruptcy on My Taxes?
Our Maryland and Washington DC Bankruptcy Attorney Can Answer Your Questions Filing for bankruptcy can lead to a number of questions that many of those struggling with debt are unable to answer on their own. One such concern individuals filing for bankruptcy may question is whether they should include this information in their tax returns. Understanding how to file your bankruptcy on your taxes can ensure that you properly complete a Chapter 7, Chapter 13 or another type of bankruptcy, and get the opportunity to have a fresh, debt-free start. How Do I File My Taxes During Bankruptcy? In both Chapter 7 and Chapter 13 bankruptcy, your taxes will likely not significantly change. You will need to file an individual 1040 tax return with the Internal Revenue Service (IRS), just as you did in previous years. However, when you file for bankruptcy, the IRS makes your assets a taxable entity….
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Keeping Your Car During Bankruptcy
Many people find that filing bankruptcy is the only way out from under a pile of debt. People who have been laid off and have not been able to find other employment and people who lost their jobs due to a health concern commonly file bankruptcy. Because of the poor job outlook, more people are filing bankruptcy. Chapter 7 bankruptcy is a liquidation of assets. The debtor is allowed to keep certain assets including a car up to a certain value. Some debt, such as student loans, domestic payments (child support and alimony) and debt owed because of a settlement for drunk driving cannot be discharged. Chapter 13 bankruptcy is a reorganization of debt. The debtor is allowed to keep certain assets including a car up to a certain value. Some debt, such as domestic payments (child support and alimony), certain settlement debt and student loans cannot be discharged. Exemptions…
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How to Keep Up on Your Credit Reports and Scores
Based on recent data from the credit bureau Experian, the average national credit score is 692. This score, commonly known as the FICO score, ranges from 300 to 850. At a score of 682, Washington D.C. came in below average. Nevada had the lowest with a 668. Maryland residents are above average with a collective credit score of 695. Minnesota had the highest average credit score at 721. Ensuring that your credit reports are accurate and that your score continues to rise is an important step of leading a financially responsible life. The consequences extend beyond financial concerns as companies and employers are increasingly using credit reports for additional purposes. The National Consumer Law Center found that nearly half of employers use credit reports in hiring decisions. Insurance companies have used credit reports to pick customers and exclude those more likely to file a claim. If you would like more…
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