Washington DC and Maryland Bankruptcy eNewsletters

Senior Citizens and Bankruptcy

A recent report said that people over the age of 55 are filing for bankruptcy protection 12 percent more than 13 years ago. In addition, this age group accounts for 22 percent of all bankruptcy filings. Many of these are people who have saved wisely in hopes of living comfortably in retirement. So why are older Americans falling into financial trouble? Why Senior Citizens are Filing for Bankruptcy Imagine having a good credit score for most of your life only to end up owing more than you have. There are several reasons why this could happen. Older people thought that social security would be more of a nest egg when in reality, it is barely enough Health care costs and prescription drugs are more expensive than ever Some retirees are still financially helping their adult children, thereby draining their own resources Many run-up their credit card balances to pay for…
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Airline Bankruptcy Cases

During the first half of April 2008 three airlines closed and filed for bankruptcy. Skybus, ATA and Aloha Airlines all closed, citing a worsening economy and fuel prices as the reasons for their financial difficulties. These airlines could not turn a profit with the cost of fuel, repairs, upkeep, personnel and credit payments exceeding the amount of income from passengers traveling and other revenue sources by a large margin. The bankruptcy lawyers for these companies completed their filings at the beginning of the second quarter in 2008. Following bankruptcy law was a viable option for these airlines, as it is for many businesses and individuals who don’t succeed and need to declare that their financial plans did not work out. In the cases of these airlines, according to their bankruptcy lawyers, the legal benefit of incorporation removed the direct loss and hardship of the owners and partners of these companies…
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Use Bankruptcy to Save Your Home

The subprime mortgage crisis of the 21st Century has resulted in a larger-than-normal number of foreclosures. Across America, people lose their homes because they cannot afford their mortgages. Many of these people simply do not know that filing for Chapter 13 bankruptcy can be a powerful tool to save their homes. Chapter 13 bankruptcy is very different than Chapter 7 bankruptcy. In Chapter 7 bankruptcy, all debts are discharged, but non-exempt property is sold to creditors. On the other hand, when someone files for Chapter 13 bankruptcy, an automatic stay goes into effect. Homeowners at risk for foreclosure have a multitude of different options available to them in order to protect their homes. Automatic Stays Automatic stays temporarily stop foreclosure and all other collections. This is done so that the debtor and the debtor’s attorney have enough time to establish a payment plan for all debts owed. An automatic stay…
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Bankruptcy Law Change Boomerangs Back Around and Strikes Mortgage Banks

When you hear the word bankruptcy you would not associate it with business success. After all, bankruptcy is a final, desperate means to keep you from drowning in a sea of debt. Yet some of the wealthiest individuals and greatest businesses in history have survived the shackles of bankruptcy: H.J. Heinz, Walt Disney, Milton Hershey, and Henry Ford all filed bankruptcy at one point. Perhaps they would have found the process more difficult with today’s bankruptcy laws. The housing foreclosure boom that is sweeping this country at the minute is influenced by the new bankruptcy laws bought into effect in 2005. The Bankruptcy Abuse Prevention and Consumer Protection Act was legislation that financial institutions, such as Washington Mutual and Bank of America, lobbied congress for to the tune of $25 million. These new laws made it harder for consumers to prove that they should be allowed to clear their debts…
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