Call 301-614-0535 to Schedule a Consultation
Recent Blog Posts
How Chapter 13 bankruptcy can safeguard your home
Facing financial difficulties can be overwhelming, especially when it jeopardizes the roof over your head. However, there is a legal option that can help you keep your home while working toward resolving your debts: Chapter 13 bankruptcy.
Chapter 13 bankruptcy is a financial remedy designed to assist individuals in reorganizing their debts and creating a manageable repayment plan. While Chapter 7 bankruptcy makes you liquidate most of your assets so that you can pay off your debts, Chapter 13 allows you to keep most of your assets, including your home, as long as you meet certain requirements.
Halt foreclosure
One of the most significant benefits of filing for Chapter 13 bankruptcy is the automatic stay it imposes on foreclosure proceedings. Once you file for Chapter 13, creditors, including your mortgage lender, must immediately halt any efforts to foreclose on your home. This temporary relief gives you time to restructure your debts and develop a repayment plan.
How can you help yourself save money during probate?
Probate can be a complex and expensive process. However, there are ways to ease the financial burden.
You can explore practical strategies to help you navigate probate while keeping costs in check.
Efficient estate inventory
Start by making a detailed list of the deceased's assets and liabilities. This speeds up the probate process and helps identify areas for cost savings. A well-made inventory can prevent delays and streamline the distribution of assets.
Timely debt resolution
Settling outstanding debts quickly is important for efficient probate management. By addressing debts as soon as possible, you can minimize interest and penalties, ultimately saving money for the estate. Prioritize settling debts based on urgency and financial impact.
Open communication among beneficiaries
Maintaining open and friendly communication with beneficiaries is important. Clearly explain the probate process and reasons for potential delays, as well as set realistic expectations to prevent disputes that may lead to costly legal interventions. An informed beneficiary group can contribute to a smoother probate process, minimizing the need for legal remedies and wasted money.
The process of filing for Chapter 13 bankruptcy
Filing for Chapter 13 bankruptcy in Maryland can be a complex process. Understanding what to expect can help you navigate it with more confidence.
Chapter 13 bankruptcy allows individuals with a regular income to create a plan to repay all or part of their debts.
Eligibility and income assessment
You must meet certain eligibility criteria to file for Chapter 13 bankruptcy. You must show that you have consistent wages, salary or self-employment income. The court will assess your income source and amount to determine your ability to meet the repayment plan requirements.
Repayment plan creation
One of the primary features of Chapter 13 bankruptcy is the repayment plan. It outlines how you will repay your creditors over three to five years, based on your income, expenses and debts. You will develop and submit this plan as part of your Chapter 13 bankruptcy application.
Creditors' meeting
After filing, you will attend a meeting with your creditors known as the "341 meeting." The bankruptcy trustee and your creditors can ask questions about your financial situation and the proposed repayment plan. You must provide accurate and honest information during this process.
What to know about the wildcard bankruptcy exemption
The United States Bankruptcy Court District of Maryland reported 7,305 bankruptcy filings in the state for 2022. Bankruptcy can be a challenging and complex process, providing individuals with an opportunity for a fresh financial start.
In Maryland, there are specific bankruptcy exemptions that allow filers to protect certain assets from liquidation to pay off their debts. Among these exemptions, the wildcard exemption stands out as a versatile tool for individuals seeking bankruptcy relief.
Understanding wildcard exemption
The wildcard exemption is a unique provision that allows filers to exempt any property of their choice up to a certain dollar value. Unlike many other exemptions, which are for specific types of assets, such as homestead exemptions for homes or exemptions for personal property, filers can apply the wildcard exemption to any personal property or asset. This gives filers more flexibility in protecting assets that other exemptions may not cover.
How proposed policy changes could impact medical debt
Medical debt casts a long shadow over many Americans' financial stability. To address this issue, the government has proposed possible regulatory changes to shield patients from the complications of unpaid medical bills.
Understanding these changes as well as your options, including bankruptcy, can help you manage your financial health.
Regulatory changes offer hope
Currently, unpaid medical debts can cause your credit score to decline. The proposed changes to regulations regarding medical debt and credit scores could eliminate unpaid medical bills from credit reports. These new rules address a critical issue affecting tens of millions of Americans. Such changes could improve access to secure housing, employment and bank loans.
Removing the negative influence of medical debt from credit reports can help lift the economic burden on individuals. These regulations could foster financial security and opportunities for many, providing a much-needed respite from the anxiety accompanying unpaid bills.
The growing dilemma of student loan debt for older Americans
In July 2023, Americans with student loan debts received an email stating eligibility to have their student loan(s) forgiven. Most recipients were skeptical. While the subject line was promising, the Supreme Court had just rejected the Biden Administration's ambitious plan to forgive $430 billion in student loans.
The reality is that many Baby Boomers and Gen-Xers are still burdened with student loan debt, and their numbers are on the rise.
The hidden struggle
There are 8.8 million borrowers aged 50 and older who collectively owe $380 billion in student loans. A recent study by New America, a policy research organization, revealed that the number of student loan borrowers aged 60 and older has grown six-fold between 2004 and 2023. So, what's behind this growing dilemma?
Rising cost of education
The increasing cost of college education is one reason for older Americans' debt. Tuition fees have more than doubled over the past three decades, even after adjusting for inflation. Most people cannot afford to pay for college out of pocket. Federally insured student loans are easy to get, making an expensive education accessible at any age.
Why you can't run away from debt collectors
A study from the Consumer Financial Protection Bureau notes that almost one in four Americans has a debt in collections.
If you are not able to make your payments, it may seem like a good idea to hide from your debt collector. However, this is a solution that will not hold up long term. Debt collection agents are experts at tracking people down, and they will likely find you sooner rather than later.
Why debt collectors keep searching
Debt collectors use different tools to find debtors. They usually start with the information given by the original creditor, including things like credit applications and agreements. This information helps them track down details about the debtor.
How collections agencies use your credit report
For debt collectors, credit reports are like a map that shows the big picture of a person's financial situation and history. Some collectors might use credit scores because they are less expensive, however, a full credit report is more detailed.
Can I defend my home from foreclosure in Maryland?
The idea of losing one's home to foreclosure can be a distressing ordeal. In Maryland, homeowners have options to defend their homes and avoid this unfortunate situation.
Though falling behind on your mortgage payments can make you feel like you are in hot financial waters, being informed can give you the confidence you need to handle the matter calmly and rationally.
Loan modification
Through loan modification, you can negotiate with your lender to change the terms of your loan. This might include lowering the interest rate or extending the loan period to make your monthly payments more manageable.
Forbearance
If your financial troubles are temporary, a forbearance agreement may be a viable option. Under forbearance, your lender may allow you to temporarily pause or reduce your mortgage payments. This can provide you with the breathing room you need to get back on your feet.
Repayment plan
A repayment plan involves spreading out your missed mortgage payments over a period of time. This option can be suitable if you have a temporary setback and can afford to pay a bit extra each month to catch up on the arrears.
Actions to avoid before filing for bankruptcy
If you have credit cards or loans and feel you no longer have control, you are not alone. Many Americans feel this way but do not recognize that bankruptcy can help.
People tend to feel shame when they cannot afford to pay off their debts. However, most people experience financial hardships and may require the fresh start that bankruptcy can offer. However, before they file for bankruptcy, they should know what actions to avoid.
Do not take on new debts
People apply for credit cards, loans and for other forms of financial help for various reasons, including to help make ends meet, to afford emergency costs and to pay for their lifestyle. In stressful economic times, more people take on new debt, and more people file for bankruptcy. In fact, bankruptcy rates rose about 10% from June 2022 to the same time in 2023. The crux of the issue is that credit card bills increase and people choose to take out loans and more credit cards to pay for other expenses. It becomes an overwhelming cycle of debt that people do not know how to escape.
Does Maryland have the highest rate of bankruptcy filings in the U.S.?
How does our state stack up against others when it comes to the number of bankruptcy filings? While Maryland does not have the highest rate of bankruptcy filings, the state still falls within the top 25. If you find yourself facing overwhelming debt, you are not alone in today's economic landscape.
If you are looking to regain control of your finances, Chapter 13 bankruptcy is a valuable option.
The benefits of Chapter 13 bankruptcy
Chapter 13 bankruptcy offers several benefits that can help people navigate their way out of debt while preserving assets and maintaining a sense of financial stability. In 2022, 157,087 people filed this type of bankruptcy, which allows individuals to create a structured repayment plan that spans three to five years. This means debtors can gradually pay off their debts, making it more manageable compared to the immediate demands of Chapter 7 bankruptcy.
One significant advantage of Chapter 13 is the ability to retain valuable assets like homes and cars. Through the repayment plan, debtors can catch up on missed payments and avoid foreclosure or repossession. Filing for Chapter 13 bankruptcy also offers a protective shield against creditors as well as has a less severe and shorter-lived impact on credit scores.
Get Control of Your Life Back and Contact Us to Schedule a Consultation
Proudly Serving Greenbelt, MD and surrounding areas including Berwyn Heights, Hollywood, Lanham, Seabrook, New Carrollton, Wildercroft, College Park, Silver Spring, Rockville, Bowie, Burtonsville, Largo, Takoma Park, Upper Marlboro, Clinton, Hyattsville, Acredale, Beltsville, Snowden Pond, Ammendale, and White Oak Manor.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
