Washington DC and Maryland Bankruptcy eNewsletters

What Happens When a Creditor Violates Automatic Stay?

Our Washington DC and Maryland Bankruptcy Lawyer Upholds Your Legal Rights in a Bankruptcy One of the strongest benefits given to individuals filing for bankruptcy is the automatic stay. Whether they are using Chapter 7 or Chapter 13, an automatic stay immediately offers relief from the harassment of creditors and the possibility of foreclosure. However, some creditors may not heed this order to desist and can continue to harass you about repaying debts. If this occurs after an automatic stay, you may have the right to pursue legal action against creditors for damages. Automatic Stays Are Protected by Law Automatic stays go into effect the moment the bankruptcy court receives your application to begin your Chapter 7 or Chapter 13 case. The law specifically prohibits certain collection activities, but violations of an automatic stay can come in several different forms. A creditor violates the automatic stay if they: Garnish or…
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Retail Bankruptcy

A retail company with stores in 49 states filed for bankruptcy under Chapter 11, putting several lawsuits against the chain on hold. The company owed some $122 million on a loan to a bank and had claims against it from three lawsuits. Each of the lawsuits were put on hold during the bankruptcy. The retailer under the terms of the bankruptcy agreed to pay $11 million to a venture capital firm, to sell 10 stores and for the venture capital firm to assume the three claims against the retailer. One of the lawsuits on hold was a $100,000 case in which a man tripped in a third level parking unit and fell in a hole. He sustained broken bones and sprains. The second case involves a woman who says she fell in a store parking unit and had a severe arm injury. The final lawsuit involved a large display poster…
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How Will Bankruptcy Affect My Student Loans?

Generally, student loans are considered nondischargeable debts in bankruptcy, but filing bankruptcy may still be the right choice for a student loan borrower struggling with debt. You might be able to obtain a hardship discharge of your student loans in Chapter 7 bankruptcy or Chapter 13 bankruptcy, or you might be able to consolidate your monthly payments on all debts—including student loans—into one affordable plan payment by filing Chapter 13 bankruptcy. If you are experiencing difficulty keeping up with your student loan or other debt payments, a Washington DC bankruptcy attorney can review your financial situation and explain your available bankruptcy options, helping you understand how the different chapters of bankruptcy will or will not affect your student loans. The Hardship Discharge A debtor who can successfully demonstrate to the court that paying his or her students loans poses an undue hardship on the debtor and his or her dependents…
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Bankruptcy as a Federal Employee

Our Maryland Bankruptcy Attorney Explains Even after the reopening of the government, countless federal employees may still be feeling its financial effects. Between the shutdown and sequester, some individuals found themselves without a source of income for close to two months. Understandably, these circumstances have resulted in many families considering consumer bankruptcy as an effective debt relief method for their financial troubles. Our Washington DC bankruptcy attorney is experienced in helping people and their families find relief from the burden of overwhelming debt. If you are financially struggling in the wake of the federal government shutdown, contact our office today to explore your options. Is Bankruptcy Right for Me? It is natural to have some anxiety about seeking a solution to your debt through bankruptcy. Many federal workers do not consider bankruptcy out of a fear that it will affect their ability to stay employed with the government. However, it…
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