Posts Tagged ‘Bankruptcy Lawyers’
VIRGINIA BANKRUPTCY
Virginia bankruptcy filings are at an all time high due to the current economy. The Virginia bankruptcy courts are flooded with new bankruptcy petitions everyday.
The current Virginia bankruptcy laws make it much harder to file for a bankruptcy now more than ever.
The Virginia bankruptcy exemptions allow you to keep certain things after you for a bankruptcy in Virginia.
It now more important than ever that you have a skilled Virginia bankruptcy lawyer to help you with your bankruptcy.
A skilled Virginia bankruptcy attorney can guide you through this very difficult time.
The SRIS Law Group Virginia bankruptcy lawyers understand that you need a Virginia Chapter 7 bankruptcy lawyer that will ensure that you keep whatever you are legally entitled to after you file your bankruptcy in Virginia.
Contact the SRIS Law Group Virginia bankruptcy attorneys today for help.
We have offices in Fairfax, Richmond, Virginia Beach, Fredericksburg, Lynchburg & Manassas.
MARYLAND & VIRGINIA BANKRUPTCY LAWYERS
HANDLING CHAPTER 7, CHAPTER 11 AND CHAPTER 13 BANKRUPTCY CASES
Congress created bankruptcy law to help people who need help get a fresh start in life. Many people feel embarrassed that they have to file for bankruptcy. As we frequently remind our clients, you shouldn’t be uncomfortable about exercising your right to file for bankruptcy.
Although new bankruptcy laws have made it more difficult to file for bankruptcy, and filing bankruptcy will require more steps than in the past, it is still possible to file for bankruptcy. We routinely help clients exercise their constitutional rights in the bankruptcy context.
If you are considering filing a bankruptcy petition, please call us today at 888-437-7747 for a free consultation to determine whether bankruptcy is right for you. You can also read the information we have provided below, which will provide you with addition information about the different types of bankruptcies.
We have Maryland & Virginia bankruptcy attorneys and offices in Virginia and Maryland.
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Our Virginia offices are in Fairfax, Lynchburg, Manassas, Richmond & Virginia Beach.
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Our Maryland offices are in Rockville & Annapolis.
For more information or to make an appointment with SRIS, P.C., please call, send us an e-mail or complete our online intake form.
SELECTING THE RIGHT TYPE OF BANKRUPTCY
Our bankruptcy attorneys handle Chapter 7, Chapter 11 and Chapter 13 bankruptcies in Maryland and Virginia.
Chapter 13 bankruptcy is generally reserved for individual consumers. It can help you save your house, car and personal effects. Filing bankruptcy might allow you to stop a foreclosure on your home. Chapter 11 can help your business reorganize and restructure, giving you an opportunity to prosper despite difficult financial times. Chapter 7 bankruptcy, also known as liquidation, allows some individuals and businesses to liquidate assets and eliminate debts.
For more information about the differences between these types of bankruptcies, please continue reading. To discuss your personal circumstances and determine which type of bankruptcy is right for you, contact us through our online intake form.
Our bankruptcy attorneys will fight those aggressive and annoying creditors for you. We work hard to provide you with the best service and legal representation possible. Our lawyers are highly skilled and knowledgeable in all types of bankruptcy law. Let an SRIS, P.C. bankruptcy lawyer in Virginia or Maryland help you get the relief that you need and deserve.
Bankruptcy law is mostly federal law. It contains the provisions that make up the current bankruptcy law. Bankruptcy proceedings are handled in the United States Bankruptcy Courts.
What is a Ch.7 bankruptcy?
The main goal of a Chapter 7 bankruptcy filing is to provide a fresh start to someone who is burdened with debt. Chapter 7 bankruptcies are the most common form of bankruptcy filings, accounting for more than 65% of all consumer bankruptcy filings.
Chapter 7 Bankruptcy is also known as liquidation or a straight bankruptcy. Liquidation converts one’s assets to money. This process involves the appointment of a trustee. The trustee collects all non-exempt property, sells the assets and then distributes the proceeds from the sale to the appropriate creditors. However, unlike other bankruptcy filings, a debtor does not make payments to the trustee.
Does this mean that you will lose your assets? The answer depends on your particular situation. If you fear that you may lose some of your possessions, discuss it with our Bankruptcy Lawyer.
The United States Bankruptcy Code may allow the debtor to keep some or all of the property. Often, a debtor will continue to make payments on a car loan or a mortgage on their home. This is done by signing a reaffirmation agreement. This agreement removes a particular loan from bankruptcy protection. Another way a debtor may be eligible to keep a vehicle is to pay the creditor the value of the vehicle. This will release the debtor from the creditor’s lien.
Unless one of the parties involved in the bankruptcy objects, the whole process is quite short. Typically some or all of the debts will be discharged within months after the bankruptcy petition is filed by an attorney. While the process sounds simple it can be very complicated.
What is a Ch.11 bankruptcy?
Chapter 11 bankruptcy is designed to provide businesses with an opportunity to reorganize and restructure their debts. This allows businesses that might otherwise be forced to liquidate their assets and close their doors to continue operating through a difficult financial time.
Filing Chapter 11 bankruptcy provides a business with temporary protection from creditors. Rather than liquidating assets to pay off debts, a business can create a plan to pay these debts from future profits the company generates. While this plan is pending approval, the business can continue operating, and creditors are not allowed to repossess property on which they have placed liens.
The Chapter 11 process is often more complex and complicated than Chapter 7 or Chapter 13 bankruptcy. When you file for Chapter 11 bankruptcy you will have to create a list of all of your creditors – and some of these creditors are selected as representatives for all of the creditors. You will also have to create a bankruptcy plan, and your creditors will have to accept this plan before your bankruptcy can be finalized.
To determine whether Chapter 11 bankruptcy is the right option for you, it is helpful to speak with an experienced bankruptcy attorney. In Maryland and Virginia, our bankruptcy attorneys can help you determine the best options for your business.
What is Ch. 13 Bankruptcy?
The purpose behind Chapter 13 bankruptcy filing is rehabilitation of the debtor. When you file for Chapter 13 bankruptcy, you are given the opportunity to repay some or all of your debts, but at generally better terms than your original agreements (lower or no interest). Rather than having to liquidate assets to pay off debts, this process is designed to allow the debtor to use future income to pay off creditors. Chapter 13 Bankruptcy is basically an adjustment or reduction of debts for a debtor with regular income.
The United States Bankruptcy Code provides the debtor an opportunity to pay back their creditors over a period of time of up to five years. This process is completely supervised by the court. Your attorney will ensure that your interests will be protected.
Chapter 13 bankruptcy allows the debtor to keep all of their property. However, an interest-free plan for repayment must be developed and approved by the court. The debtor begins to make payments within thirty to forty-five days after the case has begun. Unlike Chapter 7 Bankruptcy, the payments are made to the trustee who will then pay the appropriate creditors. Chapter 13 Bankruptcy prevents creditors from collecting from the debtor. The creditors are required by law to strictly follow the terms of the repayment plan. Your attorney will prepare this payment plan.
Although our bankruptcy attorneys are licensed to handle bankruptcy cases in Virginia, Maryland, D.C. & Massachusetts, we handle bankruptcy cases only in Virginia & Maryland.
Our Maryland & Virginia Bankruptcy attorneys and staff speak various languages, including English, Tamil, Arabic, Spanish, French, Hindi, Cantonese, Mandarin, and Telugu.
For more information or to make an appointment with a SRIS, P.C. bankruptcy lawyer, please call us at 888-437-7747, send an e-mail or complete the online intake form.
Please click on attorneys to learn more about the bankruptcy lawyers who handle bankruptcy cases in Virginia and Maryland.
We Are a Designated Debt Relief Agency under Federal Law. We Provide Legal
Assistance to Consumers Seeking Relief Under the Bankruptcy Code.
CHAPTER 13 BANKRUPTCY LAWYERS IN VIRGINIA & MARYLAND
If you are having trouble meeting your financial obligations, or feel like you’ll never be able to get out of debt, filing for Chapter 13 bankruptcy may be a wise choice for you. Chapter 13 bankruptcies are also known as the wage earner’s plan. , allows people who have a regular source of income create a financial plan for eliminating debt.
At SRIS, P.C., our experienced bankruptcy lawyers help people in Maryland and Virginia restructure their debts using the Chapter 13 bankruptcy process. Contact us today to discuss your concerns.
What Is Chapter 13 Bankruptcy?
With a Chapter 13 bankruptcy, you agree to pay your creditors some portion of the money that you owe them over a three to five year period. Frequently, this agreement will include a reduced interest rate for these debts or even eliminate interest entirely. The precise amount you have to repay will be determined by your disposable income, and your other financial obligations.
The entire process will be overseen by the bankruptcy courts, and creditors are not allowed to attempt to collect from you outside of this agreement.
Contact Our Bankruptcy Attorneys Today
If you are considering a Chapter 13 bankruptcy, our experienced Chapter 13 bankruptcy lawyers can help you determine what type of bankruptcy will work best for you. In Maryland or Virginia, call us at 888-437-7747 or complete our online intake form today.
We Are a Designated Debt Relief Agency under Federal Law. We Provide Legal
Assistance to Consumers Seeking Relief Under the Bankruptcy Code
BANKRUPTCY LAWYERS IN VIRGINIA & MARYLAND
Chapter 11 bankruptcy can help a struggling business become financially viable once again. At SRIS, P.C., our experienced Chapter 11 bankruptcy attorneys can help businesses in Maryland and Virginia reorganize under the Chapter 11 bankruptcy laws. Contact us today to discuss your bankruptcy concerns.
When Is Chapter 11 Bankruptcy the Best Option?
A Chapter 11 bankruptcy is generally most suitable for businesses that have successful plans with the potential to generate future profits, and simply need the opportunity to restructure debt obligations and contractual to maintain current business operations.
If you have become unable to pay your creditors, but want to continue operating, Chapter 11 bankruptcy might be an appropriate choice for you. A Chapter 11 bankruptcy gives a debtor the opportunity to create a manageable financial plan while recommitting to some previous agreements.
Contact Us Today to Discuss Chapter 11 Bankruptcy
Declaring Chapter 11 bankruptcy can be an effective business decision if you are struggling to meet your debt obligations, but it can also be an expensive and time-consuming process. To determine whether Chapter 11 bankruptcy is a good choice for you, discuss your circumstances with an experienced business and bankruptcy lawyer.
Come to SRIS, P.C. Our skilled bankruptcy attorneys can help you select the best course of action for your business. Call us at 888-437-7747 or complete our online intake form.
We Are a Designated Debt Relief Agency under Federal Law. We Provide Legal
Assistance to Consumers Seeking Relief Under the Bankruptcy C
Chapter 11 bankruptcy can help a struggling business become financially viable once again. At SRIS, P.C., our experienced bankruptcy attorneys can help businesses in Maryland and Virginia reorganize under the Chapter 11 bankruptcy laws. Contact us today to discuss your bankruptcy concerns.
When Is Chapter 11 Bankruptcy the Best Option?
Although Chapter 11 Bankruptcy is available for both individuals and businesses, it is generally most suitable for businesses that have successful plans with the potential to generate future profits, and simply need the opportunity to restructure debt obligations and contractual to maintain current business operations.
If you have become unable to pay your creditors, but want to continue operating, Chapter 11 bankruptcy might be an appropriate choice for you. Much like Chapter 13 bankruptcy, which is reserved exclusively for individual debtors, Chapter 11 bankruptcy gives a debtor the opportunity to create a manageable financial plan while recommitting to some previous agreements.
What Happens in a Chapter 11 Bankruptcy?
After filing a petition for Chapter 11 bankruptcy, there are some immediate consequences and effects. First, there is an automatic stay placed on any liens that your creditors have placed on your assets – meaning that they are generally not allowed to repossess these assets. When you file your petition you will have to file a list of your creditors, and a government agent will appoint a creditors’ committee to represent the interests of all of your creditors.
The goal of Chapter 11 bankruptcy is the successful rehabilitation of your business. The government understands that to successfully rehabilitate your business, you have to continue with normal business operations – so you will generally continue to have a great deal of flexibility in running your business.
After filing your petition for Chapter 11 Bankruptcy, you’ll generally file a Chapter 11 plan, outlining your future obligations to your creditors. As you work to create an agreement that will satisfy your creditors and allow you to continue operating your business, the bankruptcy court will supervise the reorganization of these obligations. The court has the authority to relieve you of some of your prior commitments, giving you the opportunity to make choices that will ensure the future profitability of your business. If you are able to reach an agreement with your creditors, the court must confirm your plan.
Contact Us Today to Discuss Chapter 11 Bankruptcy
Declaring Chapter 11 bankruptcy can be an effective business decision if you are struggling to meet your debt obligations, but it can also be an expensive and time-consuming process. To determine whether Chapter 11 bankruptcy is a good choice for you, discuss your circumstances with an experienced business and bankruptcy lawyer.
Come to SRIS, P.C. Our skilled bankruptcy attorneys can help you select the best course of action for your business. Call us at 888-437-7747 or complete our online intake form.
We Are a Designated Debt Relief Agency under Federal Law. We Provide Legal
Assistance to Consumers Seeking Relief Under the Bankruptcy Code.
HAPTER 13 BANKRUPTCY LAWYERS IN VIRGINIA & MARYLAND
If you are having trouble meeting your financial obligations, or feel like you’ll never be able to get out of debt, filing for Chapter 13 bankruptcy may be a wise choice for you. Chapter 13 bankruptcies are also known as the wage earner’s plan. , allows people who have a regular source of income create a financial plan for eliminating debt.
At SRIS, P.C., our experienced bankruptcy lawyers help people in Maryland and Virginia restructure their debts using the Chapter 13 bankruptcy process. Contact us today to discuss your concerns.
What Is Chapter 13 Bankruptcy?
With a Chapter 13 bankruptcy, you agree to pay your creditors some portion of the money that you owe them over a three to five year period. Frequently, this agreement will include a reduced interest rate for these debts or even eliminate interest entirely. The precise amount you have to repay will be determined by your disposable income, and your other financial obligations.
The entire process will be overseen by the bankruptcy courts, and creditors are not allowed to attempt to collect from you outside of this agreement.
Contact Our Bankruptcy Attorneys Today
If you are considering a Chapter 13 bankruptcy, our experienced Chapter 13 bankruptcy lawyers can help you determine what type of bankruptcy will work best for you. In Maryland or Virginia, call us at 888-437-7747 or complete our online intake form today.
We Are a Designated Debt Relief Agency under Federal Law. We Provide Legal
Assistance to Consumers Seeking Relief Under the Bankruptcy Code.
MARYLAND AND VIRGINIA BANKRUPTCY LAWYERS
If you’re over your head in debt and you’re looking for a way out, come to the experienced bankruptcy lawyers of SRIS, P.C. We handle bankruptcy matters in Virginia and Maryland, with Virginia offices in Fairfax, Virginia Beach, Richmond, Manassas and Lynchburg, and Maryland offices in Rockville and Annapolis.
Contact us today for your initial consultation. You can complete our online intake form or call us at 888-437-7747. If we aren’t able to answer you immediately – we will get back to you very quickly. We do our very best to reply to all of our phone calls within eight hours or less.
Do You Qualify for Chapter 7 Bankruptcy?
With the recent changes to the bankruptcy code, you may be limited in your ability to file Chapter 7 bankruptcy. To determine whether you are eligible to file under Chapter 7, also known as straight bankruptcy, you must consider two elements.
First, your current monthly income must be less than or equal to the medium income in your state. This means that it may be more favorable for you to be in one state over another – but the new bankruptcy laws also established residency requirements, so you can’t relocate just to be in a state where you would meet the income requirement.
Second, even if you meet the income requirements, you have to qualify for Chapter 7 bankruptcy under the means test. The means test is intended to determine whether you have enough income to make payments under a Chapter 13 reorganization bankruptcy – and therefore whether you will be required to restructure your debts rather than having these debts forgiven.
Determining whether you can qualify under the means test can be a complicated process, involving multiple factors. To determine whether you can qualify under this test, it is helpful to discuss your individual circumstances with an experienced bankruptcy attorney.
Contact Us Today
Come to our law offices today; our skilled Chapter 7 bankruptcy lawyers will help you determine the best option for your personal situation. Contact us by calling 888-437-7747 or completing our online intake form.
For more information about bankruptcy generally, please see our Bankruptcy FAQ.
We Are a Designated Debt Relief Agency under Federal Law. We Provide Legal
Assistance to Consumers Seeking Relief Under the Bankruptcy Code.
MARYLAND BANKRUPTCY LAWYERS & VIRGINIA BANKRUPTCY ATTORNEYS
BANKRUPTCY LAW FAQs
The following are some of most commonly asked questions by our clients in Virginia, Maryland about bankruptcy in Virginia & Maryland.
If you need the help of a Virginia bankruptcy attorney or Maryland bankruptcy attorney to assist you with a bankruptcy in Virginia or bankruptcy in Maryland, do not hesitate to contact us. We have offices in Virginia & Maryland to better serve you.
Bankruptcy and the Law
- Federal bankruptcy law has two goals
- Voluntary and Forced Bankruptcy
- Bankruptcy – To File or Not to File
- The Consequences of Bankruptcy
- Debts Not Discharged Through Bankruptcy
- Types of Bankruptcy
- Bankruptcy Filing Restrictions
- Exempt and Non-Exempt Property
- Typically Exempt Property
- Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
- The “Means Test”
- Mandatory Credit Counseling
- Residency Requirements
- Car Payments and Loans
- What Happens After You File
- First Meeting of Creditors – The 341 Hearing
- Reaffirmation Of Debts
- Dischargeable & Non Dischargeable Debts
- Credit Cards
- The Big Question: Will I Lose My House?
It happens… sometimes a person’s financial or business financial situation spirals out of control, and the debts just become too overwhelming to meet or pay back.
The founders of our nation were aware of this, and also aware that the “Old World” system of debtor’s prison was neither practical nor fair. That’s why they provided for bankruptcy in the Constitution.
Federal bankruptcy law has two goals (top)
- Obtaining fair treatment for creditors, and
- Obtaining a new start for debtors involved in bankruptcy proceedings.
It’s a way for debtors to start afresh, reorganizing their life unduly burdened by constant debt and demands for money that they just don’t have. It’s also a way for the creditor to at least possibly recoup a portion of the money owed them.
Voluntary and Forced Bankruptcy in Virginia & Maryland (top)
By far, most bankruptcy proceedings are voluntary. A debtor (the person or business owing the money) realizes their poor financial situation, and voluntarily applies for debt relief – either for total dissolution or a structured, financial reorganization .We’ll go into the forms of bankruptcy filings (called “Chapters”) below.
There are occasions when a creditor (the person being owed the money) will petition the courts for a forced bankruptcy – but those filings are very rare, since the creditor stands to gain nothing in the end.
Bankruptcy – To File or Not to File In Virginia & Maryland (top)
Bankruptcy should be the “nuclear option” – the means of last resort. It’s not a game and shouldn’t be taken lightly.
If you find yourself in these situations, then consulting with a bankruptcy attorney may be your wisest choice:
- You can’t pay your existing monthly bills and obligations
- Your credit card debt is beyond your means to ever repay
- Debt collectors are making your life a living hell
- You’re being threatened with lawsuits or have judgments already levied against you
- Foreclosure on your house is being threatened or is imminent.
- You’ve experienced severe financial losses or setbacks due to illness, loss of employment, business failure, divorce and similar circumstances.
If you have the financial means you may want to try and settle your existing debts for a lump sum payment, or offer lesser payments over time. Sometimes this works, but in many cases the creditor goes on the offensive and will demand full payment, even though it’s to their advantage to take a lesser amount. (It’s called blind greed, since something is always better than nothing.)
You might also seek help from credit reorganization companies or non-profit groups whose business is to help people in your situation. However, please be aware that many of these “credit repair companies” are nothing short of scams. Always consult with your attorney, legal aid group, Better Business Bureau, Chamber of Commerce, or your states Attorney General Office if you have any doubts about the companies you’re thinking of dealing with.
Finally, take a good look at your situation. There’s a common misunderstanding about civil judgments. A person or company may get a civil judgment against you – but then they have to collect.
If you have nothing to seize and attach, (such as a house, a hefty bank account, real estate, securities, precious coins, and so on) even if a creditor does get a civil judgment, they can’t collect on assets you don’t have. They won’t hesitate to use the fear of civil proceedings against you – but if they see it’ll be a lesson in futility, they may just decide the expense isn’t worth the improbable gain.
Also be aware that in most states, the statute of limitations is 4 years for collecting on most common debts. If a creditor doesn’t file in court before the deadline – they lose the right to go after that debt.
A realistic consultation with an experienced bankruptcy attorney will be able to define and answer these questions for you.
The Consequences of Bankruptcy in Virginia & Maryland (top)
First off, your ability to obtain credit will very probably be greatly impaired. However, if credit cards were your downfall, then you shouldn’t be applying for them in the first place. Even if you do get credit, you’ll probably be paying a much higher rate of interest, since you’ll be viewed as a high risk case. It can take up to three or more years to reestablish your credit rating.
Your ability to buy or rent housing, and perhaps even secure a job will likewise be adversely affected.
The bankruptcy discharge will remain on your consumer credit report for seven to 10 years.
Debts Not Discharged Through Bankruptcy In Virginia & Maryland (top)
Bankruptcy isn’t a magic bullet. There are debts that won’t be discharged after you file and the bankruptcy approved:
- Taxes
- Government fines or penalties
- Alimony & Child support
- Student loans
- Recent large purchases
- Debts obtained through fraud
Types of Bankruptcy In Virginia & Maryland (top)
Depending upon your situation, federal bankruptcy law provides for different types of proceedings or Chapters in applying the law.
- Chapter 7 (Personal Bankruptcy) The complete liquidation of the debtor’s estate.
- Chapter 7 Bankruptcy, or “liquidation,” is generally the simplest and quickest form of bankruptcy. It’s available to people, corporations and partnerships. Your non-exempt property is assessed and sold by a trustee of the court, with the proceeds going to pay the creditors.
Bankruptcy Filing Restrictions In Virginia & Maryland (top)
You can’t file for a Chapter 7 Bankruptcy is it’s been less than 8 years since your last Chapter 7 filing, or 6 years from a previous Chapter 13 filing. Chapter 13′s can be filed every two or four years depending upon the circumstances and type of previous bankruptcy filing.
Exempt and Non-Exempt Property In Virginia & Maryland (top)
Property is divided into two categories: Exempt and non-exempt. Basically, these are exactly what they sound like. Exempt property is property that can’t be seized, taken or sold by the person or person to whom money is owed. Both federal and state laws govern what constitutes exempt property. Depending upon the state in which you live, you may be required to use state exemptions over the federal ones. In other states you can choose the one most beneficial to you.
When you file, you state whether your assets are exempt or non-exempt. In many Chapter 7 filings, there is simply nothing asset wise to go around and hence there’s no non-exempt property for the court trustee to sell. The burden of proof lies with the trustee to challenge the exempt filing.
Any non-exempt property is taken over by the trustee, who’ll then sell it – using the proceeds to pay court costs and then the creditors according to a schedule of claims priorities. However, once you do file for bankruptcy, any subsequent wages you then earn are yours, beyond the reach of your creditors.
Typically Exempt Property In Virginia & Maryland (top)
Creditors are usually prohibited from seizing certain assets. These include:
- Personal jewelry
- Vehicles (up to a certain value)
- Equity in a home (up to a certain value)
- “Tools of the trade” – tools and equipment necessary for employment.
- Social Security payments
- ERISA-qualified retirement accounts
- Life Insurance policies
Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (top)
On October 17th, 2005 a new bankruptcy law went into effect. It was passed in order to “reform” the bankruptcy system. That it did, all in favor of the banks, credit institutions and credit cards companies who lobbied for years to get it passed. While imposing many new restrictions upon individuals, the law did nothing to modify the often times draconian lending practices of these institutions. The “Consumer Protection” part of the law’s title seems a bit callous and disingenuous at best.
The “Means Test” In Virginia & Maryland (top)
One important change is the “means test” for filing for Chapter 7 relief.
Income and expenses are examined in detail to see how they compare to the standard wages and cost of living for your locality as determined by the IRS. If you earn less than the median income for a family of your size in your state, you can automatically file for Chapter 7 bankruptcy.
However, if your income from the last six months is greater than the median income and you can pay at least $6,000 over five years or $100 a month toward your debt, you must file for Chapter 13 instead – requiring you to repay a portion of your debts over three to five years.
Mandatory Credit Counseling In Virginia & Maryland (top)
You must also now apply for and receive approved credit counseling and a budget analysis, to be paid out of your own pocket.
Residency Requirements In Virginia & Maryland (top)
Yet another change is that of residency. Previously, one could move to another state with more liberal bankruptcy exemption provisions and file immediately. Now one must be a resident of the state for a certain amount of time before filing, or be forced to take federal exemptions.
Car Payments and Loans In Virginia & Maryland (top)
Previous to the Bankruptcy Reform Act of 2005, you could continue to make your car payments when they came due. Title to the car would be transferred to you upon satisfying the loan.
Now you must “re-affirm” your auto loan within 45 days after the meeting of the creditors (the so-called “341 Meeting” described below). You no longer have the option to continue payments without this re-affirmation. This makes it easier for the creditors to repossess your auto, using the sale proceeds to satisfy the debt. Plus, you are now liable for any deficiency between the loan and selling price, which wasn’t the case before October of 2005.
What Happens After You File In Virginia & Maryland (top)
Once you file for either Chapter 7 or Chapter 13, you receive what’s called an automatic stay – meaning your creditors are stopped from trying to collect on the debts owed them. For a creditor to circumvent this stay, they have to convince the bankruptcy judge there is sufficient cause. This is a rather rare occurrence.
If a creditor continues to attempt to collect a debt after you’ve filed, they should be notified via certified mail that you have filed for bankruptcy. If the creditor ignores your notification, then they can in turn be sued in civil court.
First Meeting of Creditors – The 341 Hearing In Virginia & Maryland (top)
After your petition for bankruptcy is filed, the first meeting of creditors is held – usually between 20 and 40 days afterwards. This is known as the “341 Hearing or Meeting.”
You’ll be asked under oath about your property and debts. Your creditors are also invited to this meeting to ask any questions they’d like to pose pertaining to your filing. However, creditors usually seldom bother to appear.
If your creditors object to any part of the 341 meeting, they have 60 days to make those objections known. If not, then they must abide by the findings.
Reaffirmation Of Debts In Virginia & Maryland (top)
Creditors can be a persistent breed. They may approach you and ask for a “reaffirmation” of your debts to them. Basically, you’re agreeing to remain liable for payment even after bankruptcy – and even if the debt could have been legally discharged. The only advantage to the debtor is that if regular payments are made, the property in question (if any – such as an automobile) won’t be sold or repossessed.
One option during the 341 meeting is to pay the outstanding obligation (such as an auto loan) in full. However, since one is in bankruptcy court, the likelihood of having a bunch of ready cash or credit available is about zero to zilch.
Even if you do want to reaffirm the debt, the court will have to approve it. It would make little sense to sign affidavits saying you’ll pay the loans when you have no realistic way of doing so. And outside of a very few tangible items (such as a car) it would be foolish to do so. Why continue to pay, when the debt can be discharged? You’ll still have a bankruptcy on your credit reports, but with the added burden of continued payments.
Sometimes unsecured creditors such as credit card companies will offer to keep you as a card holder, but under new terms, if you agree to reaffirm the debt. Be very careful about this. In most cases the new terms and conditions are totally one sided – the credit card company’s side. With the increased interest rates and penalties for missing payments, you may well find yourself in the same boat as before – but without the option of bankruptcy as a last resort.
Dischargeable & Non Dischargeable Debts In Virginia & Maryland (top)
Debts are divided into two categories – dischargeable (those that will be discharged or annulled) and those that can’t be discharged. There are also debts that fall within a grey zone as well.
Dischargeable debts include: Personal loans, credit card debt, repossession deficiencies, auto accident claims, civil or private judgments, business debts, leases, and claims of negligence.
Non dischargeable debts include: Taxes, child or family support, criminal fines or restitutions, auto accident claims involving a DWI/DUI, government penalties, student loans and debts listed in a prior bankruptcy where a discharge was denied.
The grey areas usually occur when fraud, dishonesty or embezzlement was involved with respect to the debt. Also, property settlements and debt obligations arising from divorce as well as claims arising from willful injury can also be non dischargeable.
In these cases, the creditor must ask the court to retain these debts. If the court agrees, then the debts cannot be discharged. If the court doesn’t agree, or if the creditor fails to petition the court – then these debts can be discharged under normal bankruptcy proceedings.
Also be aware if you are a co-signer to a loan or debt, and if the main party files for bankruptcy and lists that debt on the schedule – you are still obligated to pay. Even though the debt you signed for has been discharged for the person applying for bankruptcy, you still remain on the hot seat and liable.
If married, you’ll be faced with the decision to file an individual or joint petition. If one spouse is listed on the credit documents, then they too can be liable for all debts incurred. Filing a joint petition (both spouses file a singular document together) may be in your best interests. Consulting with your attorney is your wisest choice in deciding how you’ll file.
Credit Cards In Virginia & Maryland (top)
After catastrophic medical costs or severe economic downturns (such as loss of a job) the number one cause of bankruptcy proceedings are credit card debt. This is no accident, With credit card companies sending out 4 BILLION offers for credit every single year in the USA alone, they practically guarantee people will get in trouble. The advertisements and promotions all seem to tout “easy money and easy payments” – but the reality is a far cry from that Madison Avenue hype.
Insanely high interest rates, the reams of fine print penalties, “universal default” and a whole slew of other methods of what’s been called “legal thievery” – it’s amazing that anyone of modest means can keep afloat. It can take a quarter century just to pay off a $5,000 balance making minimum payments!
After lobbying for and getting passed the new bankruptcy “reforms” – credit card companies have become even bolder in trying to make those debts non-dischargeable. In fact, some of them have been quietly lobbying for the Holy Grail of coercions – making credit card debt default a criminal and not a civil matter.
Not content with hounding their one time “privileged members” with aggressive collection tactics or bleeding their defaulting customers dry in civil actions, they are looking for ways to actually throw them in the slammer. If this happens, we’ll have come full circle – from the old world debtors prisons our founding fathers sought to dismantle, to a perverse 21st century equivalent.
There are a host of factors that determine if your credit card usage was “normal” or “fraudulent,” including:
The number, amount and types of goods charged, number and amount of cash advances, sudden changes in buying habits, employment or employment prospects when making charges, whether you consulted with an attorney about bankruptcy before incurring the debts, and whether the original application was fraudulent. (Which begs the question – if the application was obviously fraudulent, why didn’t the credit lending institution catch it beforehand instead of willy-nilly granting charging privileges?)
If credit card debt is your financial demise, it’s best to consult with an attorney about the nature of your expenditures and your possible options outside of bankruptcy.
The Big Question In Virginia & Maryland: Will I Lose My House? (top)
The answer is: Possibly. The Bankruptcy Reform Act of 2005 actually makes that possibility more likely than before. (Another one of those so-called “consumer protections.”) Also, depending upon the state in which you reside, you may have more or fewer legal protections about whether your house will be forfeit. Up to a certain amount, your house is exempt. Over a particular value, and it possibly could be sold to satisfy your creditors.
SRIS PC – Bankruptcy Law Attorneys In Virginia & Maryland (top)
Bankruptcy Laws can be complex. Creditors can be daunting and their tactics downright harassing. Foreclosure can be looming right before your eyes. All this at a time when you’re at your most vulnerable. Money is tight or non-existent, every time the phone rings or the mail comes you wince in anticipation of another dunning phone call or demands for payment. You don’t know from one day to the next how you’ll ever dig yourself out of your desperate situation.
The Virginia bankruptcy attorneys & Maryland bankruptcy attorneys at SRIS PC are experienced bankruptcy lawyers when it comes to bankruptcy laws, proceedings and filings. If you’re considering a bankruptcy in Virginia or bankruptcy in Maryland, give us a call.
Our Maryland & Virginia bankruptcy lawyers and staff who assist clients with immigration law speak the following languages in addition to English: Tamil, Hindi, Arabic, Telugu, French, Spanish, Malaysian, Cantonese & Mandarin.
If you are contemplating a bankruptcy or facing a foreclosure and would like the assistance of a Virginia bankruptcy lawyer or Maryland bankruptcy lawyer, please contact us at our Virginia or Maryland Offices. You can reach us by phone, email or the fast on line form.
Let us help you through these trying times. Just call us at 888-437-7747
VIRGINIA BANKRUPTCY LAWYERS & MARYLAND BANKRUPTCY ATTORNEYS
HANDLING VIRGINIA CHAPTER 7 BANKRUPTCY CASES & MARYLAND CHAPTER 7 CASES
The bankruptcy law was created to help people. However, most people don’t want to file for a bankruptcy unless they absolutely have to.
The new bankruptcy laws have made it more difficult to file for a bankruptcy in Virginia or file for a bankruptcy in Maryland and filing bankruptcy will require more steps than in the past. However, it is still possible to file for bankruptcy in Virginia & Maryland. Our Virginia bankruptcy lawyers & Maryland bankruptcy lawyers routinely help clients exercise their constitutional right to file for a bankruptcy in Virginia & bankruptcy in Maryland.
If you are considering filing a bankruptcy in Virginia or bankruptcy in Maryland please call us today at 888-437-7747 for a consultation with a Virginia bankruptcy lawyer or , Maryland bankruptcy lawyer to determine whether filing a bankruptcy is right for you. We have Maryland bankruptcy lawyers & Virginia bankruptcy attorneys and offices in Virginia, Maryland & Massachusetts.
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Our Virginia offices are in Fairfax, Fredericksburg, Lynchburg, Manassas, Richmond & Virginia Beach.
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Our Maryland offices are in Rockville & Baltimore.
For more information or to make an appointment with a SRIS, P.C. Virginia bankruptcy lawyer or Maryland bankruptcy lawyer please call, send us or contact us via our online intake form.
THE RIGHT TYPE OF BANKRUPTCY
Our bankruptcy attorneys handle Chapter 7 bankruptcies in Maryland & Virginia.
Chapter 7 bankruptcy, also known as liquidation, allows some individuals and businesses to liquidate assets and eliminate debts.
Talk to us and we will help you determine which type of bankruptcy is right for you in Virginia & Maryland.
Our Virginia bankruptcy attorneys & Maryland bankruptcy lawyers will fight those aggressive and annoying creditors for you. Our Virginia bankruptcy lawyers & Maryland bankruptcy lawyers are highly skilled and knowledgeable in all types of bankruptcy law. Let a SRIS, P.C. bankruptcy lawyer in Virginia or SRIS, P.C. bankruptcy lawyer in Maryland help you get the relief that you need and deserve.
Bankruptcy law is mostly federal law and it is important to be aware of the most current bankruptcy laws. Bankruptcy proceedings are handled in the United States Bankruptcy Courts.
What is a Ch.7 bankruptcy?
The main goal of a Chapter 7 bankruptcy filing is to provide a fresh start. Chapter 7 bankruptcies are the most common form of bankruptcy filings. More than 65% of all consumer bankruptcy filings are Chapter 7 bankruptcy filings.
Chapter 7 Bankruptcy is also known as liquidation or a straight bankruptcy. Unlike other bankruptcy filings, a debtor does not make payments to the trustee in a Chapter 7 bankruptcy.
If you fear that you may lose some of your possessions, discuss it with our Virginia Bankruptcy Lawyer or Maryland Bankruptcy Lawyer.
The United States Bankruptcy Code may allow the debtor to keep some or all of the property. Often, a debtor will continue to make payments on a car loan or a mortgage on their home. This is done by signing a reaffirmation agreement. This agreement removes a particular loan from bankruptcy protection.
The Chapter 7 bankruptcy process is usually quite short. Typically some or all of the debts will be discharged within months after the bankruptcy petition is filed by an attorney. While the process sounds simple it can be very complicated.
Although our bankruptcy attorneys are licensed to handle bankruptcy cases in Virginia, Maryland, D.C. & Massachusetts, we handle bankruptcy cases only in Virginia & Maryland.
Our Maryland bankruptcy lawyers & Virginia bankruptcy attorneys and staff speak various languages, including English, Tamil, Arabic, Spanish, French, Hindi, Cantonese, Mandarin, and Telugu.
For more information or to make an appointment with a SRIS, P.C. bankruptcy lawyer in Virginia or bankruptcy lawyer in Maryland, please call us at 888-437-7747, send an e-mail or complete the on line intake form.
We Are a Designated Debt Relief Agency under Federal Law. We Provide Legal
Assistance to Consumers Seeking Relief Under the Bankruptcy Code
VIRGINIA BANKRUPTCY LAWYERS & MARYLAND BANKRUPTCY ATTORNEYS
HANDLING VIRGINIA CHAPTER 7 BANKRUPTCY CASES & MARYLAND CHAPTER 7 CASES
The bankruptcy law was created to help people. However, most people don’t want to file for a bankruptcy unless they absolutely have to.
The new bankruptcy laws have made it more difficult to file for bankruptcy in Virginia, bankruptcy in Maryland and filing bankruptcy will require more steps than in the past. However, it is still possible to file for bankruptcy in Virginia & Maryland. Our Virginia bankruptcy lawyers & Maryland bankruptcy lawyers routinely help clients exercise their constitutional right to file for a bankruptcy in Virginia & bankruptcy in Maryland.
If you are considering filing a bankruptcy in Virginia or bankruptcy in Maryland please call us today at 888-437-7747 for a consultation with a Virginia bankruptcy lawyer or , Maryland bankruptcy lawyer to determine whether filing a bankruptcy is right for you. We have Maryland bankruptcy lawyers & Virginia bankruptcy attorneys and offices in Virginia, Maryland & Massachusetts.
-
Our Virginia offices are in Fairfax, Fredericksburg, Lynchburg, Manassas, Richmond & Virginia Beach.
-
Our Maryland offices are in Rockville & Baltimore.
For more information or to make an appointment with a SRIS, P.C. Virginia bankruptcy lawyer or Maryland bankruptcy lawyer please call, send us or contact us via our online intake form.
THE RIGHT TYPE OF BANKRUPTCY
Our bankruptcy attorneys handle Chapter 7 bankruptcies in Maryland & Virginia.
Chapter 7 bankruptcy, also known as liquidation, allows some individuals and businesses to liquidate assets and eliminate debts.
Talk to us and we will help you determine which type of bankruptcy is right for you in Virginia & Maryland.
Our Virginia bankruptcy attorneys & Maryland bankruptcy lawyers will fight those aggressive and annoying creditors for you. Our Virginia bankruptcy lawyers & Maryland bankruptcy lawyers are highly skilled and knowledgeable in all types of bankruptcy law. Let a SRIS, P.C. bankruptcy lawyer in Virginia or SRIS, P.C. bankruptcy lawyer in Maryland help you get the relief that you need and deserve.
Bankruptcy law is mostly federal law and it is important to be aware of the most current bankruptcy laws. Bankruptcy proceedings are handled in the United States Bankruptcy Courts.
What is a Ch.7 bankruptcy?
The main goal of a Chapter 7 bankruptcy filing is to provide a fresh start. Chapter 7 bankruptcies are the most common form of bankruptcy filings. More than 65% of all consumer bankruptcy filings are Chapter 7 bankruptcy filings.
Chapter 7 Bankruptcy is also known as liquidation or a straight bankruptcy. Unlike other bankruptcy filings, a debtor does not make payments to the trustee in a Chapter 7 bankruptcy.
If you fear that you may lose some of your possessions, discuss it with our Bankruptcy Lawyer.
The United States Bankruptcy Code may allow the debtor to keep some or all of the property. Often, a debtor will continue to make payments on a car loan or a mortgage on their home. This is done by signing a reaffirmation agreement. This agreement removes a particular loan from bankruptcy protection.
The Chapter 7 bankruptcy process is usually quite short. Typically some or all of the debts will be discharged within months after the bankruptcy petition is filed by an attorney. While the process sounds simple it can be very complicated.
Although our bankruptcy attorneys are licensed to handle bankruptcy cases in Virginia, Maryland, D.C. & Massachusetts, we handle bankruptcy cases only in Virginia & Maryland.
Our Maryland bankruptcy lawyers & Virginia bankruptcy attorneys and staff speak various languages, including English, Tamil, Arabic, Spanish, French, Hindi, Cantonese, Mandarin, and Telugu.
For more information or to make an appointment with a SRIS, P.C. bankruptcy lawyer in Virginia or bankruptcy lawyer in Maryland, please call us at 888-437-7747, send an e-mail or complete the on line intake form.
We Are a Designated Debt Relief Agency under Federal Law. We Provide Legal
Assistance to Consumers Seeking Relief Under the Bankruptcy Code.
