Washington DC and Maryland Bankruptcy eNewsletters

Will Declaring Bankruptcy Discharge My Student Loans?

Washington DC Bankruptcy Attorney Discusses a Little Known Fact Most people assume that one cannot discharge a student loan debt through bankruptcy. The accepted fact is that you can get rid of most kinds of unsecured debt through bankruptcy, but student loans are one thing you can’t wipe out through bankruptcy. A careful reading of bankruptcy law reveals that this is almost always true. For those able to prove that repaying a loan would cause undue hardship, student loans can, in fact, be discharged by bankruptcy. Undue hardship is undefined in bankruptcy law, meaning that each individual court decides what it means, making it an incredibly difficult condition to meet. For starters, one must be able to prove not only an inability to repay loans now, but very little chance of being able to pay them in the future either. Most borrowers don’t even try to discharge student loans since…
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Common Bankruptcy Timelines

Bankruptcy timelines depend on a variety of factors, such as the particular bankruptcy court, the bankruptcy trustee, the judge, the debts and assets of the debtor and the number of filings before the court. Below are some general guidelines to consider for people thinking about bankruptcy. Actual timelines will vary from individual to individual. A Maryland bankruptcy lawyer can help you assess your bankruptcy needs and provide guidance as to how a bankruptcy would proceed for you. Important Dates Prior to Filing for Bankruptcy There are several dates and timelines to keep in mind before you file for bankruptcy, including the following: You cannot discharge debt under a Chapter 7 bankruptcy if you filed a Chapter 7 or Chapter 11 bankruptcy within the past eight years. If you filed for Chapter 13 bankruptcy within the past six years, you also cannot discharge debt by filing for a Chapter 7 bankruptcy….
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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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Chapter 7 Bankruptcy Rules

The latest Chapter 7 bankruptcy rules make it more difficult for some bankruptcy filers to file under Chapter 7. Liquidation under Chapter 7 bankruptcy is the most popular way to file for bankruptcy. Chapter 13 allows for a repayment of debts by the filer. The new bankruptcy rules state a few new requirements to file under Chapter 7: Must have lower than median income Must be unable to pay back debts Must complete credit counseling The old bankruptcy rules allowed the filer to choose whether he wants to file under Chapter 7 or Chapter 13. Now, the filer must look at his income and must earn less than the median income for his household size in his state. If the income of the filer is less than the median income, the filer may file for Chapter 7 bankruptcy. The Chapter 7 bankruptcy filer must also be unable to pay back…
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