Maryland Bankruptcy Law
Bankruptcy in Montgomery County
Bankruptcy laws are complicated. 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.
When declaring bankruptcy proves to be the best option, our bankruptcy law firm guides our clients every step of the way through what is often a complex and confusing process. Bankruptcy laws are best navigated with lawyers who are well-versed and have been serving in all aspects of bankruptcy laws for at least for 30 years.
Depending on the financial situation of a client, one type of bankruptcy may be preferable over another under Maryland bankruptcy laws. Our Frederick and Rockville Maryland lawyers can assist our clients with filing bankruptcy for the following:
We are ready to answer your questions
One of our experienced Montgomery County bankruptcy lawyers is waiting to answer your questions about all aspects of bankruptcy laws in Maryland. We can help resolve your Maryland bankruptcy law problems. We can evaluate your financial situation and help you decide which form of bankruptcy is right for you.
The following article is offered to help you in your effort to understand how bankruptcy laws apply to your situation:
The Myth About Bankruptcy
By Robert K. Goren*
There are literally dozens of debt consolidation businesses, many of which charge huge fees in advance and are owned or subsidized by creditors, chanting the mantra—AVOID BANKRUPTCY! Why is it that these firms are so intent on treating Bankruptcy like the plague?
Unfortunately for many people who owe debt (debtors) and who are constantly harassed by creditors, their collection agencies and attorneys, unscrupulous collection practices are common, including dissemination of misinformation about the nature and consequences of filing for bankruptcy protection. It is not uncommon for collectors to demand payments after assuring debtors that they can no longer receive a discharge under the new bankruptcy law or that bankruptcy will ruin their credit forever. Both claims are false.
Nearly four years ago, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), the revised bankruptcy law, which was purportedly designed to prevent bankruptcy abuses and to force more individuals into repayment plans under Chapter 13 of the Bankruptcy Code, rather than Chapter 7, which provides a fresh start with no repayment required. The experience of the past four years has taught that few, if any, of these goals have been accomplished. Eighty-five to ninety percent of those who could have filed prior BAPCPA can still do so and many abuses still occur by dishonest debtors or creditors.
BAPCPA did manage to accomplish one thing—it imposed burdensome new requirements on debtors and their attorneys resulting in increased costs to the consumer. Despite these burdens, many distressed consumers and small businesses have continued to use the bankruptcy process. In 2008, over one million cases were filed nationally. Approximately two thirds of these cases were filed under Chapter 7, giving debtors the complete fresh start that Congress mandated. Individuals who believe that bankruptcy protection may not be available will find that bankruptcy remains their best option. Most people receive a permanent elimination of their debts and most are able to rebuild their credit within two to three years. While no one wants to file for bankruptcy protection, the debt consolidation business created by the credit industry continues to misinform the public about options available to consumers who finds themselves in financial difficulty and fails to reveal the conflict of interest inherent in the process of negotiating debt with lenders who own or control the negotiators.
Debt consolidation plans run by the creditors may succeed for some, but many are derailed by exorbitant fees, creditors who refuse to participate, or interest that continues to accrue. The dire consequences of bankruptcy spewed by some debt collectors or debt consolidation programs are simply untrue. The truth about the availability, benefits and consequences of bankruptcy need to be understood in order to make an intelligent decision on how to proceed.
*Robert K. Goren is a member of the law firm of Goren, Wolff & Orenstein, LLC in Rockville, Maryland. He has been representing individual and small business debtors in bankruptcy for over 25 years. He welcomes your questions about bankruptcy law in Montgomery County, Maryland.