Bankruptcy is the legal discharge of debt. If you have taken on more debt than you are able to repay, the law allows you to eliminate most and often all of your debt in bankruptcy. For some debtors, this can have the effect of providing a whole new start in life. The United States Bankruptcy Code is complicated and constantly changing, however, so great care must be taken in preparing a bankruptcy petition.

Chapter 7 and Chapter 13 are the two types of bankruptcy typically available to individual or joint debtors. In either type of bankruptcy, the court issues an nifty order called the “automatic stay,” which directs your creditors to cease all collection activities immediately under penalty of sanction. If your home is scheduled for a foreclosure sale, the sale will be legally postponed while the bankruptcy is pending, typically for three to four months.

If you are considering filing for bankruptcy in Washington, D.C. , Virginia or Maryland, it is strongly recommended that you contact a knowledgeable bankruptcy attorney immediately.

Lee Legal is a debt relief agency as defined by 11 U.S.C. § 528(a)(4). In other words, we help people file for relief under the Bankruptcy Code.

Student Loans are Holding Back Home Ownership

December 29, 2016 Brian V. Lee

America’s student-loan debt grows by $2,726 every second. Total student loan debt in the United States has topped $1.3 trillion, second only to mortgage debt. Nearly one-third (30%) of Americans know someone who has delayed the purchase of a home because of [ . . . ]

D.C. Small Claims Increase is a Big Win for Creditors

December 27, 2016 Brian V. Lee

Effective immediately, the  jurisdictional limit of D.C.’s Small Claims Court has increased from $5,000 to $10,000. By contrast, Virginia’s small claims (General District Court) limit is $25,000, and Maryland’s small claims (District Court) limit is $30,000. The D.C. small claims increase took [ . . . ]

Bankruptcy in the Bible

December 24, 2016 Brian V. Lee

Deuteronomy defines bankruptcy in the Bible. But the Bible also frequently mentions lending, fair pay, creditors, interest payments, and money in general. Let’s start out with one of Jesus’ most important messages before we take a look at the Old Testament. [ . . . ]

Top 9 Financial Fears of Americans

December 21, 2016 Brian V. Lee

An early 2016 study by insurance and investing behemoth Northwestern Mutual revealed some interesting insights into several issues impacting people’s long-term financial security. Here are the top 9 financial fears in America. The 9 Biggest Financial Fears for Americans Number One and [ . . . ]

Does Foreclosure Show Up on a Background Check?

December 19, 2016 Brian V. Lee

Running a personal background check can tell a potential employer or landlord a lot about you. Today’s background checks include more than just your criminal record. Background checks also reveal prior addresses, previous employers, and your credit history. But does foreclosure [ . . . ]

Tuition is Dischargeable in Bankruptcy

December 16, 2016 Brian V. Lee

Section 523 of the Bankruptcy Code provides that student loans are not dischargeable in bankruptcy. But unpaid tuition is not a student loan. While it is extremely difficult to discharge student loans in bankruptcy, unpaid tuition is dischargeable in bankruptcy. [ . . . ]

Credit Monitoring Services are a Waste of Money

December 14, 2016 Brian V. Lee

Many companies (like LifeLock, Identity Guard, and IdentityForce) offer to monitor your credit report and alert you if something suspicious happens. These companies charge a monthly fee, between $9.99 and $29.99 per month. All three credit bureaus also offer credit monitoring services for various [ . . . ]

Will Partial Payments Delay Foreclosure?

December 12, 2016 Brian V. Lee

If you have missed mortgage payments, you may wonder: Will partial payments delay foreclosure? In most cases, unfortunately, the answer is No. If your mortgage company actually accepts your payment, they will not apply it to your most recent bill. [ . . . ]

Fannie Mae, Ginnie Mae and Freddie Mac: What Do They Do?

December 7, 2016 Brian V. Lee

Fannie Mae, Ginnie Mae and Freddie Mac are government-sponsored enterprises (GSEs). The U.S. Congress created these corporations to reduce cost and increase availability of credit to targeted borrowing sectors. GSEs enhance the flow of money between private lenders and investors. [ . . . ]

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