Washington DC and Maryland Bankruptcy eNewsletters

Chapter 13 Bankruptcy and the Vehicle Cramdown

A primary concern of most bankruptcy filers is what will happen to their vehicle. People depend on their vehicles to get to and from work, to transport kids and elderly family members, to run errands, and to travel out of town when necessary. Generally, unless there is something wrong with the vehicle or the debtor simply cannot afford to pay for it, most bankruptcy filers want to keep their cars. In Chapter 13 bankruptcy, debtors are sometimes able to pay less for their vehicle than what they currently owe. When a Chapter 13 debtor is upside down on his or her vehicle, meaning the balance owed exceeds the current value of the car, the debtor may be able to cram down the debt. A vehicle cramdown is where a Chapter 13 debtor pays the fair market value of the vehicle instead of having to pay the total amount owed. If…
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Will Bankruptcy Ruin My Life?

Washington DC Bankruptcy Attorney Explains Why the Answer is No You feel like you are buried up to your neck in debt. Time and time again you have worked long hours, extra jobs, saved and maybe even borrowed more to help dig yourself out of the hole, but to no avail. Maybe you are behind on mortgage payments, or facing massive bills due to an unexpected need for medical treatment. You know that bankruptcy can ease some of your debt obligations, but you are worried that it will be a financial death sentence. The Straight Truth About Bankruptcy Bankruptcy is a multi-step process and the exact details of it depend on whether you file under Chapter 7 or Chapter 13. Regardless of what you file, your bankruptcy will immediately: Issue an “automatic stay” to your creditors. This means no more harassing phone calls, no more demands for payment. Stop wage…
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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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Counseling Courses Required Before and After You File Bankruptcy

In 2005, Congress enacted the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). One component of BAPCPA is the requirement that all consumer debtors complete counseling courses both before and after they file bankruptcy. Before filing, debtors must complete a pre-filing credit counseling course, and then after filing, they must complete a post-filing financial management course. If you are considering Chapter 7 or Chapter 13 bankruptcy, a qualified Maryland and Washington DC bankruptcy attorney can explain your bankruptcy options and provide you with information concerning all BAPCPA requirements. Pre-Filing Credit Counseling A consumer debtor must complete the pre-filing credit counseling course within 180 days before filing his or her Chapter 7 or Chapter 13 case, unless BAPCPA counseling is not required in the district within which the case is being filed. Upon completion of the course, the credit counseling agency will provide the debtor with a certificate that can be…
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