Washington DC and Maryland Bankruptcy eNewsletters

When Filing for Bankruptcy May Not Be the Best Option

In many cases, bankruptcy may not be a person’s best option. The severe consequences of filing for bankruptcy may just not be worth it. A bankruptcy will remain on a person’s credit report for up to ten years, making it difficult to obtain loans at reasonable interest rates, rent apartments, and even get a job in some cases. A debtor will not always be able to keep his or her more important possessions, like homes or cars. In addition, bankruptcy will do nothing to discharge some debts — child support, student loans, and many taxes, for example. If you are facing financial troubles and you wonder whether filing for bankruptcy is feasible for you, a Washington DC or Maryland bankruptcy attorney is available to discuss what you may be able to do. When Bankruptcy is not the Best Option When most of your debt is secured, such as for a…
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The Means Test in Maryland Bankruptcy

Financial troubles can be an incredibly stressful burden. For those suffering under unmanageable debts, it is all too easy to feel like there is nothing you can do. Your situation is not hopeless. Bankruptcy can help people recover from financial ruin and reclaim their lives. A Maryland or Washington DC bankruptcy attorney can assess your financial situation to determine if filing for bankruptcy is right for you, and if it is, he can help you find the best way to go about it. There are two basic types of consumer bankruptcy: Chapter 7 bankruptcy and Chapter 13 bankruptcy. Each type has distinct requirements and provides a different method for dealing with your debts. Deciding between them can be a daunting task for a layperson. One of the first steps to determine which type of bankruptcy to file begins with something called the means test. This is a detailed snapshot of…
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Avoiding the Worst Credit Cards and Options from Alternative Credit Sources

After filing for a Chapter 7 or Chapter 13 bankruptcy, many people are surprised to find that they will still receive credit card offers from their banks or through the mail. Although this is a good sign that you may be able to repair your credit, it is vital that bankruptcy consumers know how to find the best deals on credit products before signing up for a new card. In the months immediately after filing for bankruptcy, a person must act with extreme caution when it comes to his or her available credit card options. Finding the right credit card for your situation will allow you to restart your life on a strong financial footing after bankruptcy. Avoiding Unfair Credit Cards A common way to rebuild your credit after bankruptcy is using a “secured” credit card. Secured cards operate much like regular credit cards, except these cards require you to…
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What Is the Significance of the Chapter 13 Means Test?

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) introduced what is known as the “bankruptcy means test,” a method for determining one’s monthly disposable income and ability to pay back creditors. In a Chapter 7 case, the means test establishes one’s eligibility to file Chapter 7 and receive a Chapter 7 discharge; that is, a person who wants to file Chapter 7 bankruptcy must pass the Chapter 7 means test. In Chapter 13 bankruptcy, on the other hand, the means test has nothing to do with one’s eligibility to file Chapter 13; rather, the means test affects the Chapter 13 repayment plan. When the annualized gross income on the Chapter 13 means test exceeds the median income for the applicable household size, the debtor(s) must file a 60-month repayment plan, unless they can pay off all debts — including all unsecured debts — in less than 60…
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