According to the Wall Street Journal, First Mariner Bancorp, a holding company for Maryland community bank 1st Mariner, filed for Chapter 11 bankruptcy last week and plans on selling itself.
The bankruptcy was filed on February 10 in Baltimore. Court paperwork indicated that First Mariner Bancorp has less than $5.5 million in assets and more than $60.5 million in debts.
The company said in a statement that it plans on recapitalizing 1st Mariner Bank with $100 million in cash. The bank itself will not file for bankruptcy and will operate separately from the holding company. No interruptions in services are expected for customers.
1st Mariner Bank operates 16 bank branches in central Maryland, according to the Associated Press.
Where Can I Find a Maryland Bankruptcy Lawyer?
As we mentioned last week, although it is used primarily for corporations and businesses, Chapter 11 bankruptcy protection is available to individuals with certain levels of debt. Chapter 11 allows debtors the opportunity to remain in business and avoid liquidation of their assets.
Unlike a Chapter 11 bankruptcy, a Chapter 7 bankruptcy allows a person to discharge unsecured debt, like credit card debt or medical bills, which often go unpaid when financial issues arise.
There are also opportunities for people who do not qualify for Chapter 7 bankruptcy in Chapter 13 bankruptcy, which allows you to repay your debts based upon your disposable income. It is often thought of as the “working man’s” or “wage-earner’s” bankruptcy plan, because one of the requirements for the individual filing is a steady income.
There is also flexibility in Chapter 13 cases that allow for modifications to repayment plans should an event such as a job loss, wage cut or catastrophic injury affect your income.
If you are facing the threat of bill collectors or financial uncertainty, you can contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation. Our attorney wants to help you relieve the stress associated with collectors. Call us today at 202-483-6070.
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Law Firm of Kevin D. Judd– Maryland and Washington DC bankruptcy attorney