Frederick Maryland Bankruptcy Blog

Long-term illnesses are one of the leading causes of bankruptcy

On behalf of Law Offices of John C. Hanrahan, LLC on Thursday, September 6, 2018.

Illnesses can strike us when we least expect them. Not only can they cause a lot of pain, stress and suffering, they can also be a heavy financial burden on a household. When a parent, child or any individual gets ill, it is likely that they will need to be cared for by another individual.

For example, when a child becomes ill for a lengthy period of time, a parent may have to take unpaid leave in order to care for him or her. In addition to this loss of income, medical bills can become extortionate if medical insurance is not adequate.

Filing for bankruptcy and keeping the family home

On behalf of Law Offices of John C. Hanrahan, LLC on Monday, August 6, 2018.

The decision to file for bankruptcy is never an easy one to make. However, it is not usually a decision that people have much time to consider. It's often a decision that is taken at a time when there are a limited number of other options.

When a little time and research is invested into learning about how bankruptcy works, many debtors can benefit from making lucrative choices that enable them to prioritize what is important to them, which, for many people, is the ability to keep the family home.

Can debts be discharged through bankruptcy?

On behalf of Law Offices of John C. Hanrahan, LLC on Tuesday, July 10, 2018.

When you are struggling with ever-increasing debts, it may be difficult to work out what your options are to help you to get out of your situation. It is likely that constant communication with debt collectors will leave you feeling stressed, but you may worry that filing for bankruptcy is an admission of failure.

Filing for bankruptcy does not mean that you have failed. It can be a lucrative way to help you to get back on track with regard to your finances. One of the many ways in which filing for bankruptcy can prove to be a wise decision relates to the fact that some of your debts may be eligible for discharge. This means that you may be given the opportunity to be relieved of the burden of some of your debts.

It’s possible to thrive after a bankruptcy

On behalf of Law Offices of John C. Hanrahan, LLC on Monday, June 11, 2018.

For many people, bankruptcy is seen as a last resort, as an admission of failure and therefore a surrender. However, bankruptcy has had a negative stigma attached to it for many years, and while needing to file for bankruptcy is never an ideal situation, it can be an empowering decision. This is because it means that the debtor is taking control of the future for the sake of oneself and one's family, and starting to steer the ship towards a better and more prosperous life.

It is also common for those considering filing for bankruptcy to dwell on all of the sacrifices that they will have to make, without thinking of any of the positives. In reality, the fear of suffering is usually worse than suffering itself, and making small lifestyle changes over time can make it possible for you and your family to be free of debt and thrive post-bankruptcy.

How does bankruptcy affect wage garnishment?

On behalf of Law Offices of John C. Hanrahan, LLC on Friday, May 11, 2018.

When you have been struggling with debts over a prolonged period of time, you may become subject to wage garnishment. This is often the last resort action that creditors are allowed to take when debtors have failed to pay what they owe.

Wage garnishment is never an ideal situation, because it means that you have money taken from your salary before you even receive it. This can be very upsetting, especially when the person is struggling with other debts and to be able to afford to pay for the basic necessities.

What are the leading causes of bankruptcy in Maryland?

On behalf of Law Offices of John C. Hanrahan, LLC posted in blog on Tuesday, April 10, 2018.

People find themselves struggling with money for all kinds of unexpected reasons. It only takes a few months for a couple of late payments to snowball into a seriously stressful situation. Once you miss payments, creditors start calling. Fees start building up. You could even wind up facing a creditor's lawsuit.

For those who can no longer keep up with financial obligations, bankruptcy relief may be the best option. Filing for bankruptcy helps stop collection activity. It also gives you a chance to rebuild fresh financial start. Knowing the biggest contributing factors to bankruptcy can also help you decide if you need this kind of relief in the future.

Creditor harassment limitations: What a creditor cannot do

On behalf of Law Offices of John C. Hanrahan, LLC posted in blog on Tuesday, March 13, 2018.

At a certain point, if you get behind on your debts, the financial institution you owe will sell your debt to a debt collector. These debt collectors buy your debt at a bargain price in the hope that they will succeed at collecting more money than they paid for it.

If you're being harassed by debt collectors, you know just how aggressive and aggravating they can be. Also, you're probably wondering what kind of limitations the law imposes on debt collectors. In other words, what are debt collectors not allowed to do?

4 benefits of an automatic stay

On behalf of Law Offices of John C. Hanrahan, LLC posted in blog on Thursday, February 8, 2018.

Many people have found themselves, at one time or another, with more debt than they can manage. If you live in Frederick, you might even have friends, family or neighbors who have found themselves in such a position. For some people, a few debt counseling sessions are enough to help them get their finances on track. Others, however, need to utilize other debt reconciliation tools like bankruptcy in order to get their debt under control.

One of the main perks of bankruptcy is the automatic stay. The following benefits of an automatic stay might be just what you need to help you reorder your finances and effectively manage your debt.

Will I lose my house in Chapter 7 bankruptcy?

On behalf of Law Offices of John C. Hanrahan, LLC posted in blog on Wednesday, January 10, 2018.

Chapter 7 bankruptcy is often referred to with the term "liquidation" because it involves the liquidation of your property to pay off creditors. However, much of your property will be exempt from the liquidation process. In some cases, your house will be included in the property that's exempt.

While you probably will not be able to keep a multimillion-dollar mansion through the Chapter 7 process, if you own a modest home -- under the right circumstances -- you just might be able to keep it.

Which bankruptcy is right for you? Chapter 7 vs. 13

On behalf of Law Offices of John C. Hanrahan, LLC posted in blog on Monday, December 11, 2017.

If you live in Frederick and have found yourself overwhelmed with debt, you are not alone. Many people, at one time or another, find themselves with more debt they can handle. Fortunately, there are multiple resources available to help you get your debt under control. Bankruptcy might be the answer you have been searching for. The two types of bankruptcies that are usually available for individuals are Chapter 7 and Chapter 13.

If you are considering bankruptcy, you probably have questions about which type is the right one for you. To find out more about the differences between Chapter 7 and 13, read further.