What are the Bankruptcy Chapters?

Most consumer debtors have two main bankruptcy chapters under the Bankruptcy Code: Chapter 13 and Chapter 7. There are, however, two other types of bankruptcy: Chapter 11 and Chapter 12. Here are the principal differences between the bankruptcy chapters. Chapter 7: Liquidation Chapter 7, also called straight bankruptcy, allows you to discharge most types of […]

Bankruptcy Will Not Kill Your Credit

Bankruptcy Will Not Kill Your Credit

Bankruptcy will not kill your credit for 10 years. Many of the clients who come into my office think that. This common misperception is the result of an intense and extended propaganda campaign by institutional lenders and credit card companies. Obviously, your creditors want you to repay your debts, no matter what the personal cost to […]

The Chapter 7 Liquidation Test in a Chapter 13 Bankruptcy

What is the Chapter 7 Liquidation Test in a Chapter 13 Bankruptcy - Lee Legal - DC VA MD

Most consumers must choose between between either Chapter 7 and Chapter 13 bankruptcy. If you have significant assets (like equity in your home) then you may want to file a Chapter 13 bankruptcy. In a Chapter 7 bankruptcy, those assets may be subject to to liquidation by the trustee. But even in a Chapter 13 […]

Do Not Run Up Your Credit Cards Before Bankruptcy

Do Not Run Up Your Credit Cards Before Bankruptcy

Chapter 7 bankruptcy is an excellent option for those who have accumulated large credit card debts. But if you run up your credit cards before bankruptcy, you may be found to have committed a form of bankruptcy fraud. When you file for bankruptcy, credit card companies carefully review all of your most recent purchases. Do […]

Will Filing for Bankruptcy Affect My Security Clearance?

The Washington, D.C. regional workforce is heavily reliant upon the federal government. I am often asked the question: How will filing for bankruptcy affect my security clearance? Guideline F and security clearance With any security clearance, the federal government examines each applicant on a case-by-case basis. Guideline F of DOD’s Guidelines for Determining Eligibility For […]

Should I Stop Paying My Bills?

Should I Stop Paying My Bills?

I often get asked the question, “If I am filing Chapter 7 bankruptcy, should I stop paying my bills?” The answer is Yes and No. Continue to Pay the Bills You Will Still Have After Bankruptcy First the No. You must continue to pay certain bills. These include your rent or mortgage, auto loans for any […]

Are student loans dischargeable in bankruptcy?

In the United States there is more than $1.2 trillion in outstanding student loan debt, 40 million borrowers, an average balance of $29,000. Are student loans dischargeable in bankruptcy? No. If you are considering filing for bankruptcy in the Washington, D.C. area, you should know that student loan debt is generally nondischargeable, which means that […]

Can the Bankruptcy Trustee Take My Tax Refund?

Can the Bankruptcy Trustee Take My Tax Refund -- Lee Legal DC VA MD

Your income tax refund is basically an interest-free loan to the government. If you have paid more in taxes than you owe, then the government must repay you for your overpayment. Especially around this time of year, clients ask me the the same question. Can the Bankruptcy Trustee Take My Tax Refund? The short answer […]

Gambling Debts Can Be Discharged in Bankruptcy

Gambling Debts Can Be Discharged in Bankruptcy

Gambling is a form of entertainment for some, but a serious addiction for others. Most people gamble for fun and know when to stop. But compulsive gamblers suffer from an addiction disorder and need professional help. In the past, bankruptcy courts regularly found gambling debts nondischargeable in Chapter 7 bankruptcy. Today, however, courts allow the […]