Frederick Bankruptcy Lawyers & Services
Bankruptcy attorneys in Frederick
Goren, Wolff & Orenstein, L.L.C. is a debt relief agency and we counsel clients in the filing of bankruptcy. It would be difficult to identify another law firm in Maryland with the strength and experience of the attorneys of our Goren, Wolff & Orenstein in the area of consumer bankruptcy as well as commercial bankruptcy cases. Whether you need business bankruptcy attorneys in Frederick or have questions about personal bankruptcy in Rockville we can help. Our attorneys have over 75 years of combined experience with all aspects of bankruptcy including the following:
Robert Goren has been helping clients with Frederick bankruptcy for many years. He recognized years ago that there was a huge need for skilled Frederick bankruptcy attorneys to represent the growing Frederick community. With the current economic downtown there is even more need for skilled Frederick bankruptcy attorneys like Robert Goren who can protect the rights of parties who are suffering financial setbacks. Do not fear personal bankruptcy in Frederick, Chapter 7, or business workout in Frederick. Our lawyers can help.
Rockville Chapter 7 and personal bankruptcy in Rockville
All of our attorneys are experienced bankruptcy practitioners on behalf of debtors, creditors, Chapter 7 trustees, Chapter 11 Trustees and Chapter 13 Tustees. Our bankruptcy lawyers in Frederick and Rockville can assist with all aspects of Maryland personal bankruptcy and business workout. The lawyers of the firm are also highly regarded in the area of Maryland personal bankruptcy. They have appeared on behalf of their clients in bankruptcy proceedings throughout the State of Maryland, the District of Columbia.
To file personal bankruptcy in Frederick, or Rockville, Maryland you would be wise to turn to our firm.
Robert Goren, with over 30 years of experience and Michael Wolff, who is a Chapter 7 Trustee and former Chairman of the Consumer Bankruptcy Section for the Maryland State Bar Association, leads the Bankruptcy Group. All of the attorneys are members of the Consumer Division of the Maryland State Bar Association, and one has also served as a Director and Chairman of the Chapter 13 Committee for the Bankruptcy Bar Association for the State of Maryland. In these difficult, economic times, the Firm has expanded its services to include the pursuit of loan modifications with lenders.
Remember, if you are seeking advice on bankruptcy , contact us to speak to a Frederick bankruptcy lawyer. If you have questions about Rockville Chapter 7 we can help.
The Myth About Bankruptcy
Q: What is a debt relief agency?
A: In 2005, Congress passed the BAPCPA, the Bankruptcy Abuse Prevention and Consumer Protection Act. The revision to the Bankruptcy Code required those professionals that counsel and assist people in the filing of bankruptcy be called Debt Relief Agencies. The professional actually assisting debtors is to be identified as “Debt Relief Agents.” In addition, those who come to us are required to be advised that we assist people in the filing of bankruptcy. You should be careful, however, because all attorneys who counsel individuals about bankruptcy are debt relief agents, but not all debt relief agents are attorneys. Our Attorneys are Debt Relief Agents and regularly attend continuing education and are qualified to give you advice.
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Q: What is the “means test,” and how does it work?
A: The Bankruptcy Reform Act of 2005, in an attempt to avoid abuse of the law, devised a financial test to assist in the determination of which chapter in bankruptcy a debtor should file. An experienced Bankruptcy Attorney, who has been designated as a Debt Relief Agent, will gather the necessary information from you to calculate where your income, expenses and debts place you under the test.
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Q: What do I bring to my free initial consultation with the attorney?
A: If available, you should bring a photo ID, all pay advices (pay stubs) for everyone in your household for the past six months, copy of your Deed to real property, your secured creditor monthly statements for mortgage and auto, copy of automobile insurance, titles to vehicles and your last three filed income tax returns. Be ready to discuss your income, debts and your monthly budget with the attorney.
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Q: What is Bankruptcy?
A: Bankruptcy is a legal method, provided by federal law, of eliminating debt and providing a means to obtain a "fresh start." In many cases, bankruptcy means the elimination of the debt that you owe to your creditors. There are two primary forms of bankruptcy, Chapter 7 and Chapter 13, used by consumers. Businesses can use Chapter 7 or Chapter 11.
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Q: Who can file Chapter 7 bankruptcy?
A: You must reside or have a domicile, a place of business, or property in the United States. You must not have been granted a Chapter 7 discharge within the last 8 years. You must not have had a bankruptcy filing dismissed for cause within the last 180 days. It must not be a "substantial abuse" of bankruptcy to grant the debtor relief.
Generally speaking, if after you pay the monthly expenses for necessities there is not enough money to pay the remaining monthly debts, then granting a discharge would not be an abuse of Chapter 7. It would not be fundamentally unfair to grant the debtor relief under Chapter 7 or Chapter 13.
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Q: Why is it legal to "wipe out" your debts?
A: More so than in any other time in our country's history, our economy is based on consumer debt. In fact, in this age of multi-billion dollar corporate bailouts, easy credit and relentless bombarding of seductive messages cajoling us to "charge, consume, buy" it is not surprising that so many people are drowning in debt.
For many of us, this debt is insurmountable and is causing family problems and feelings of hopelessness and even suicide. With credit card interest rates of 18-21%, many feel like modern day indentured servants. Many times, the debt is occasioned by unforeseen events such as loss of a job or medical bills, but more often it is simply poor planning. Nevertheless, in instituting our bankruptcy laws, Congress recognized that responsible, well-intentioned people could from time to time run into financial problems. By allowing you to recover from your debt burden you will be able to start afresh, look to the future and become a more productive member of society. This is good for you and good for society as a whole.
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Q: What is Chapter 7 Bankruptcy?
A: This is commonly referred to as "straight bankruptcy" and it is the most commonly filed form. Only individuals (not businesses or partnerships) may obtain a discharge in a Chapter 7 proceeding. Large credit card debt and other unsecured bills coupled with few assets, typify the filer of this form of bankruptcy. In the vast majority of cases this type of bankruptcy is able to completely eliminate all of the filer’s debts.
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Q: Will I have to give up any of my property to my creditors?
A: The vast majority of filers get all or most of their debts discharged (wiped-out) without giving up any of their own property. This is because federal as well state laws provide exemptions for your property. Exempted property is property such as household goods, personal belongings, tools of the trade, marital property and cash which you may keep despite your bankruptcy.
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Q: Are some of my debts non-dischargeable?
A: Some kinds of debts are not dischargeable, which means that you will remain obligated to repay them even after you complete your personal bankruptcy. Examples of non-dischargeable debts are certain state and federal taxes and student loans unless there is undue hardship.
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Q: What is a Chapter 13 Bankruptcy?
A: Under a chapter 13 bankruptcy, a debtor proposes a 3-5 year repayment plan to the creditors offering to pay off all or part of the debts from future income. The amount to be repaid is determined by several factors including the debtors' disposable income and the results of the means test. To file under this chapter you must have a "regular source of income" and have some disposable income. Most are not required to pay more than 25 percent of their unsecured debts. Corporations and partnerships may not file under this chapter.
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Q: When is a Chapter 13 a better alternative than a Chapter 7?
A: There are several situations where a chapter 13 is preferable to a chapter 7. A chapter 13 bankruptcy is normally for people who have too much income to file a Chapter 7 bankruptcy or have the kind of debt that is non-dischargeable in a Chapter 7. Also, people file Chapter 13 because they are behind on their mortgage or business payments and are trying to avoid foreclosure. A chapter 13 bankruptcy allows them to make up their overdue payments over time and to reinstate the original agreement. Also, where a debtor has valuable nonexempt property and wants to keep it, a chapter 13 may be a better option.
However, for the vast majority of individuals who are qualified and who simply want to eliminate their heavy debt burden without paying any of it back, Chapter 7 provides the most attractive choice.
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Q: Will Filing Bankruptcy Stop My Bill Collectors from Taking Action?
A: Yes, When you file bankruptcy, federal law imposes an "automatic stay" which precludes your creditors from taking any action to collect debts against you including court judgments and tax debts during the pendency of the bankruptcy. For instance, if you have been served by one of your creditors to appear in court over a debt, the bankruptcy filing will stop this lawsuit.
Any wage garnishments or repossession efforts are also halted. However, once the bankruptcy is over, a creditor holding a claim that was not discharged may proceed to collect on the debt. Also, under some circumstances a secured creditor may proceed to collect on the lien he has on the filer's asset during the bankruptcy proceeding, but may only do so if the automatic stay has been limited by the law or by filing a court motion and getting the approval of the bankruptcy court first. An experience bankruptcy attorney will know in advance of filing which creditors would not be stopped by the automatic stay.
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Q: How quickly will my creditors get notice of my bankruptcy?
A: Within a couple of days of the filing of your petition, the bankruptcy court clerk mails your creditors notice of the filing and the imposition of the automatic stay. Until the creditors get notice, it may be necessary for you to supply the creditor with the docket number and date of your bankruptcy. Once they have been given notice, they must stop collection efforts against you or may be liable for court sanctions. Thankfully, for the vast majority of people, once their bankruptcy petition is filed that is the last time they hear from their unsecured creditors.
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Q: Do I have to pay my bills during the bankruptcy proceeding?
A: For the most part, the answer is no. For specific property (usually secured) such as your car loan or your houses mortgage that you plan on keeping you should continue to make payments. Also, for day to day expenses such as rent and utilities you should also continue to make payments. You should stop making payments on other old debts incurred prior to the bankruptcy such as credit card debts.
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Q: How long does a bankruptcy take?
A: For a typical chapter 7 case, the discharge of your debts usually takes approximately 100 days. A chapter 13 takes anywhere from 3-5 years. The filing of a bankruptcy, provides immediate relief from creditor collection action, garnishment, repossession or foreclosure.
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Q: How Do I know if it's time for me to File?
A: If your creditors are attacking your assets and income and you are in debt way over your head, look into the "fresh start" filing bankruptcy may be able to provide. It seems the stigma attached to filing bankruptcy has greatly diminished over the last decade as a fast increasing percentage of the population need to file to protect their assets.
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Q: Will I lose my car and my house?
A: As long as you continue to keep up to date on your payments on the loan that secures the property, there should not be a problem keeping your house or car, even after the bankruptcy proceeding is concluded.
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Q: Does Bankruptcy devastate my credit?
A: Although the record of filing bankruptcy may stay on your credit report for up to 10 years, often by making payments on time subsequent to your bankruptcy you can regain an "excellent" credit rating within 2 years of your discharge.
Ironically, in many cases filing bankruptcy may actually help your credit rating because discharging your debts greatly improves your debt to income ratio which is a major criteria creditors use in judging your "creditworthiness".
By all accounts, bankruptcy no longer has the stigma attached to it that it once did. Perhaps, this is one of the reasons that the number of filings has been dramatically increasing over the last several years.
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Q: Can I keep any of my existing credit card accounts?
A: The credit card accounts that you have a zero balance on are not technically creditors and thus are not discharged in bankruptcy. Often these creditors will allow you to keep your credit with them.
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Q: Will everyone find out about my Filing?
A: Not unless you tell them or they go out of their way to check the public records. Bankruptcy filings are not normally published in newspapers, therefore the only people who usually find out that you are in a bankruptcy are creditors and those to whom you apply for credit.
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Q: Can I be fired for filing bankruptcy?
A: No, if your employer finds out about your bankruptcy, it is against federal law to discriminate against someone for filing bankruptcy.
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Q: Can I be denied a Student Loan for filing bankruptcy?
A: No, It is against Federal Law to deny someone a student loan because they filed bankruptcy.
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Q: Do I have to list all of my assets on my petition?
A: Yes. Knowingly and fraudulently concealing your assets from the bankruptcy court is a federal offense and the court has the power to deny you a discharge. Remember that most bankruptcy cases are considered "no asset" cases since state or Federal exemption laws protect all of their property.
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Q: Should I feel ashamed to file bankruptcy?
A: There is a lot to think about before filing bankruptcy, however feeling ashamed should not be one of them. The history of bankruptcy in the United States dates back to the founding of our nation. The early English practice of debtor's prison was so abhorred by our founding fathers, they expressly outlawed it and instituted forgiving bankruptcy laws early on in our nation's history. Over the years, some of our nation’s most revered companies and people have turned to the bankruptcy system for help. This nation’s greatest president and founding father, Thomas Jefferson, filed for bankruptcy not just once, but several times to eliminate the accumulation of his huge debt. Filing bankruptcy is better put into perspective when you know that a man of Mr. Jefferson's foresight and intelligence could repeatedly get himself into financial trouble, and that our government has provided bankruptcy laws as a viable, helpful and necessary remedy to eliminate and control debt.
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