Washington DC and Maryland Bankruptcy eNewsletters

What Is an Automatic Stay?

The owners of a landfill company filed for Chapter 11 for bankruptcy protection. The decision came in spite of the company receiving a multimillion-dollar contract from a client. However, the client was accused of withholding payment owed by the landfill owners. The owners claimed the non-payment caused them to file for bankruptcy. The operation of the landfill will continue running while the Chapter 11 case is undergoing. However, it was quoted that, “With bankruptcy comes an automatic stay against new litigation,” by the owner’s representation. This means that a lawsuit cannot be filed against neither of the businesses until the business dispute is cleared. Automatic Stay Once an individual files for bankruptcy, he or she can reap the benefits of automatic stay. A helpful Washington DC Chapter 7 lawyer can assist you in preparing documents needed to begin filing for bankruptcy. Automatic stay is designed to give the court time…
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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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Deciding Whether to File for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy

Throughout the first two quarters of 2010, Maryland debtors and businesses have filed nearly 16,000 bankruptcies. And, continuing a trend that has lasted for several years now, more debtors have filed for bankruptcy than the quarter before. While, nationwide, most consumer debtors opt for a Chapter 7 bankruptcy versus a Chapter 13 one (approximately 75% choose Chapter 7), in Maryland, the breakdown is closer to fifty-fifty, with just slightly more choosing Chapter 7. A Chapter 7 bankruptcy is a liquidation bankruptcy. The debtor’s bankruptcy trustee takes control of any property of the debtor that is non-exempt and will sell that property and use the cash to pay off the debtor’s creditors. A Chapter 13 bankruptcy is a reorganization bankruptcy. Debtors filing under Chapter 13 work out a repayment plan to pay off their debts in three to five years. If you would like to learn more about whether a Chapter…
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Bankruptcy and Its Effects on Your Most Important Assets

Often, the first question that a person considering bankruptcy has concerns how the bankruptcy will affect his or her property. There is no simple answer to this. The impact of a bankruptcy depends on factors like the type of debt that a person used to acquire the property, the income that a person currently earns and what the person’s long-term goals are. Below are overviews of how a bankruptcy could affect important assets like your home, small business, automobile or retirement money. A Maryland bankruptcy attorney can assist you in understanding how filing for bankruptcy will affect property that you own. Bankruptcy and Your House While a Chapter 7 bankruptcy can eliminate many of your debts, the bank is still able to foreclose on your home if you fail to make your mortgage payments. We refer to this type of debt as secured debt. Your home serves as collateral so…
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