Washington DC and Maryland Bankruptcy eNewsletters

A Washington DC and Maryland Bankruptcy Lawyer Talks About Avoiding Liens on Household Goods

Finance companies offering short-term loans often require borrowers to pledge personal property as collateral for the loan. When you pledge property you already own as collateral, you grant the finance company a security interest in it, which means the finance company can demand that you turn over the property if you default on the loan. This type of security interest is known as a non-purchase money security interest, because the loan was not made for the purchase of the collateral. Most finance companies do not actually want your property, but they know the mere threat of taking it might be enough to get you to pay. When you file for bankruptcy, you have the opportunity to eliminate non-purchase money security interests in your personal property through a process known as lien avoidance. If you have pledged any of the following types of property as collateral for a loan, you may…
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How Does Chapter 11 Bankruptcy Help Businesses?

Washington DC Bankruptcy Attorney Examines an Unusual Case Bankruptcy is a procedure in which consumers or businesses can repay some or all of their debt on a reasonable plan, and in some cases, eliminate their debt entirely. Declaring bankruptcy guarantees the safety of your belongings, protecting you against the actions of any creditors you may have. For business owners, the most common form of reorganization bankruptcy is Chapter 11, which is a complicated process. Those planning to file this kind of bankruptcy are strongly encouraged to hire an experienced bankruptcy attorney. An Attempt to File For Chapter 11 Bankruptcy Gone Awry Dean Smothers, owner of a Washington DC nightclub called Love, recently had his venue shuttered by the DC Office of Tax Revenue (OTR) after a bewildering series of twists and turns. For several years, Smothers turned hefty profits. At some point, however, the impresario fell behind on taxes, plunging…
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Debts Discharged In Chapter 7 Bankruptcy

Filing for bankruptcy can be a powerful tool to help you reclaim your financial independence after unmanageable debts have gotten the better of you. The Chapter 7 process provides individuals with a way to walk away from certain types of debt without suffering any serious consequences. This can allow them to regain their financial footing and helps in eventually reestablishing credit. Bankruptcy allows you to “discharge” these unpaid debts, which means that the bankruptcy process eliminates your legal obligation to repay them. Afterwards, creditors cannot begin or continue any action to collect these debts, including phone calls, letters, statements or lawsuits. A Chapter 7 bankruptcy discharge can create a new financial reality for you, but it is not a magic bullet. Many people mistakenly look at bankruptcy as a way to walk away from every single debt. Unfortunately, Chapter 7 does not discharge all debts, and some debts you must…
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Can Bankruptcy Affect My Contract with the Government?

Answers from a Maryland Bankruptcy Lawyer The effects of the federal government shutdown continue to be felt both in the Beltway and across the country. Although federal employees faced the most direct difficulties from the lapse in fund appropriations, thousands of government contractors undoubtedly suffered losses as well. In these dire economic times, an increasing number of individuals are turning to bankruptcy as a way of reworking their finances and getting relief from crushing debt. However, some individuals may hesitate to pursue bankruptcy relief out of a concern that they will lose their government contracts. Can the Government Deny My Contract Because I Filed Bankruptcy? The bankruptcy code states that “a governmental unit may not deny, revoke, suspend or refuse to renew a [contract]…to a person that is or has been a…bankrupt or debtor under the Bankruptcy Act.” The law makes it clear that a past or ongoing bankruptcy cannot…
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