Rockville Bankruptcy Law Blog
New Reorganization Bankruptcy Option for Small Business Debtors
There is a brand new streamline Chapter 11 case for a small business debtor reorganization case. Subchapter V of Chapter 11 allows a streamline approach for business reorganizations that is a hybrid between an individual Chapter 13 case and a more involved Chapter 11...
The emotional effects of living with debt
Not all debt is bad. In fact, some debt increases your net worth or has future value - like taking out a mortgage. But even if your debt isn’t necessarily the bad kind, it still doesn’t feel good to live with. The average American household has $134,643 in debt, and...
How millennials are financially worse off than older generations
Millennials catch a lot of flak for their avocado toast and selfie-obsessed culture, but you may want to cut them so slack. Millennials are more financially behind than any generation that came before them, causing them to delay life milestones and even rely on their...
How long does bankruptcy affect your credit?
Bankruptcy is a legal proceeding designed to help people eliminate or reorganize insurmountable debt. But while bankruptcy provides many with the clean slate they need to get back on track, it isn’t without consequences. Bankruptcy can impact your credit score more...
Are bankruptcy courts becoming more forgiving toward student loan debt?
It has long frustrated many, including personal finance guru Suze Orman, why someone can use bankruptcy to eliminate debt racked up on cars, clothes, travel and other nonessentials, yet student loan debt is pretty much stuck to you for life. Individuals have received...
What is the chapter 7 means test and how does it work?
For individuals and some businesses, chapter 7 bankruptcy may be their best option for a fresh start. Referred to as the “liquidation” bankruptcy type, chapter 7 involves the debtor giving up significant assets. These assets are then distributed and sold and the money...
5 Signs you’re in over your head financially
Most people in the U.S. are living with some type of debt looming over them. In 2016, American household debt, including mortgages, home equity loans, credit cards, student loans and auto loans, reached a staggering $12.58 trillion. The average household alone carries...
Chapter 13 bankruptcy can help struggling consumers start over
Bankruptcy can get a bad reputation. When people hear of someone they know filing for bankruptcy, some people assume that money mismanagement is the root cause. However, many fall into financial despair due to circumstances beyond their control. Whether it be divorce,...
Business disruptions and bankruptcies in difficult times
The first half of 2020 has brought a one-two punch to many small business owners in Maryland, along with many other American families and businesses throughout the region and nationwide. First, the COVID-19 virus pandemic, which was defined as such in early March,...
Consider credit counseling before filing for bankruptcy
Before a person can declare bankruptcy, they must participate in credit counseling. This financial advice helps people understand their budgets and pursue alternative solutions. Credit counseling helps people avoid bankruptcy, which should remain a last resort for...
