Washington DC and Maryland Bankruptcy eNewsletters

Republican Tax Modifications Aim to Make It More Difficult to Take on Debts

The American debt crisis has gotten way out of hand. According to government data cited in a recent LA Times article, US consumer debt has reached 12.58 trillion, topping the amount of debt in 2008 which led to the recession. Data indicates that borrowers are more responsible in repaying their debts now, but the amount of debt is still very alarming. Legislators are now aiming to pass legislation that would make business have to pay taxes on debts that they take out. New Tax Modification Explained The new modification is the elimination of the ability for businesses to write off debt interest as a tax deduction. Republican lawmakers propose that this new tax revision will generate about 1.5 trillion in government revenue over a decade. Private equity companies and wall street companies who have debt-oriented business models would be most affected. This change is designed to limit the amount of…
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Handling Creditor Harassment While in Bankruptcy: Tips from a Maryland and Washington DC Bankruptcy Lawyer

When you file for bankruptcy, an automatic stay goes into effect that bars most creditors from taking collection actions against you while your bankruptcy case is pending. It is important to note that if you have had one or more bankruptcy cases pending and dismissed within the past year, the stay may be limited to 30 days or not take effect at all. In those situations, a qualified Washington DC and Maryland bankruptcy attorney can assist you with filing a motion to impose or extend the stay. Automatic Stay Protection The automatic stay prohibits most creditors from engaging in collection activities while your bankruptcy case is pending, including: Starting or continuing foreclosure proceedings Repossessing or seizing property Garnishing wages or bank accounts Filing or continuing lawsuits Enforcing a judgment Perfecting a lien Attempting to collect a debt through any means, including phone calls, emails and collection letters The automatic stay…
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How to Avoid Bankruptcy Scams

Attorneys General from multiple states have sued companies throughout the country that have been running bankruptcy scams and “get out of debt quick” schemes. Seeking to avoid filing for bankruptcy, some people turn to these companies that promise to clear up credit histories or reach an agreement with creditors. Unfortunately, bankruptcy-related scams promise a lot more than they deliver. People hoping to avoid bankruptcy end up losing more money and find themselves in a worse financial position. Legitimate bankruptcy and credit services are available from experienced attorneys and nonprofit organizations. Unlike bankruptcy scams, these resources know that the priority is helping you and not simply taking your money. If you would like to learn more about bankruptcy and how to avoid falling victim to bankruptcy scams, a Maryland bankruptcy attorney can guide you through the bankruptcy process. Avoiding Bankruptcy Scams The following are tips that consumers should remember when considering…
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The Truth behind Credit Repair Services

With high unemployment, underwater mortgages, and high debt levels, Americans have faced tough economic times in the past several years. Companies have preyed on vulnerable consumers, offering credit repair and mortgage relief services that promise more than they deliver. Last year, the Federal Trade Commission accused eight companies of falsely telling consumers that the companies would remove negative information from credit reports or get their banks to modify their mortgages. The companies charged consumers up to $2,000 each for their alleged services. All but one of the companies failed to respond to the complaint. A federal court ruled against them by default and ordered that they pay more than $7.5 million for their deception. The court order prohibits the companies from selling so-called credit repair services and offering to handle late payments, charge-offs, collections, delinquencies, and other problems that consumers face. The court order also bars the companies from misleading…
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