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When a City Councilperson Files for Bankruptcy

Cynthia Sterling became the first sitting city councilperson to file for personal bankruptcy in the history of Fresno, California. While according to the city attorney the move won’t cost Sterling her official city position, it did raise eyebrows in the community about her ability to help allocate the city’s money. Sterling filed for Chapter 13 bankruptcy protection, which required her to pay back the debts over five years. Sterling listed some $95,000 in debts in the filing, about $69,000 in assets and an annual income of $65,000 for her city council position. She claimed the bulk of her debts included expenses incurred when she inherited her parents’ funeral home business upon their deaths. The local newspaper reported that Sterling said she was doing the responsible thing by choosing to pay off the debt in a Chapter 13 filing. She told the newspaper that she handles city money responsibly. Bankruptcy Creditor…
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Lease Assumption Agreements: No Turning Back

A lease assumption agreement is a legal contract a bankruptcy debtor can use to keep a leased vehicle after a Chapter 7 bankruptcy case. A Maryland bankruptcy attorney or a Washington DC bankruptcy attorney can help guide you through the process of signing a lease assumption. A lease assumption agreement is necessary if you are leasing a car when you file Chapter 7 and you want to keep it. One thing many debtors may not realize, however, is that once you sign a lease assumption agreement, you cannot rescind it – the contract is binding. If you sign the lease assumption but default on your car payments after your bankruptcy is over, you will be responsible for the original lease contract as if the bankruptcy had never happened. Reasons why a debtor would not assume a car lease: The payment is too high for the debtor to afford. Debtors should…
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The Path to Good Credit after Bankruptcy

So you made it through the bankruptcy proceeding and it probably was not as bad as you thought it would be. The bad news is that your credit is likely at its lowest point. The good news is that you now have clean slate, a fresh start. In addition, if you are patient and smart with your finances, you can put yourself back on track to having good credit. In addition to this article, speaking to an experienced Maryland bankruptcy attorney will help raise your credit score faster than you think. While true that a Chapter 7 bankruptcy filing will remain on your credit report for 10 years, it is not the end of the world. By following some simple steps, you can rebuild your credit score in a relatively short amount of time. How to Re-Build Your Credit after Bankruptcy You will likely begin receiving credit offers not long…
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What If My Circumstances Change While I’m in Chapter 13 Bankruptcy?

Chapter 13 bankruptcy allows individuals to pay off their debts over three to five years. The potential benefits include being able to keep non-exempt property, averting foreclosure by catching up past due mortgage payments and discharging certain debts when the repayment plan is complete. A knowledgeable Maryland and Washington DC bankruptcy attorney can review your financial situation to determine whether Chapter 13 bankruptcy may be right for you. Sometimes people’s circumstances change after the bankruptcy court has approved their Chapter 13 repayment plan. A job loss, divorce, or sharp increase in expenses can all make it difficult for a Chapter 13 debtor to continue making payments as originally proposed. When this happens, the debtor may need to consider options such as modifying the repayment plan, converting to a Chapter 7 case or voluntarily dismissing the Chapter 13 case. An experienced Washington DC and Maryland bankruptcy attorney helps debtors understand their…
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