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Washington DC Bankruptcy Law Blog

Does employment status affect your bankruptcy filing?

As an unemployed resident of Washington, D.C., you may be concerned that your lack of employment will affect your ability to file for bankruptcy. Some rumors do make it sound like it’s impossible, but is it?

In short, Patch Media states that the answer is no. Unemployment does not affect your ability to file for bankruptcy. However, you might face more risks and losses in your filing than an employed person would. Chapter 7 bankruptcy would likely be the easier option for you, and will also likely be the type of bankruptcy that you automatically qualify for once you apply due to the low amount of income you currently bring in.

How does Chapter 13 bankruptcy affect your car and house?

Going into bankruptcy can be scary, especially with tales of car repossession or being harassed nonstop by creditors over the potential foreclosure of your home. We here at Ammerman & Goldberg understand that you wish to protect your biggest assets, and we are here to help you do that.

Car repossession is one of the top concerns many people have when filing for bankruptcy, and it may be one of yours as well. Fortunately, Chapter 13 bankruptcy will make it so your car cannot be repossessed for the duration of the bankruptcy period. This is because the debt consolidation for this particular filing includes any car payments. Future and back payments are made to the trustee.

Ways to cut down your credit card debt

Washington, D.C. can be an expensive place to live. Unfortunately, many people can find themselves getting in a little over their heads when it comes to the amount of debt they rack up when living in metropolis areas. So how can consumers learn how to cut down on their credit card spending?

The U.S. News & World Report has stated that one of the best ways to tackle debt is by starting at the smallest point. Smaller debts are paid off more easily compared to larger ones. By eliminating the little piles first, a person can also get rid of their interest rates and free up more money to be put toward larger debts in the future. This snowball effect can speed up the time it takes someone to free themselves completely from their past expenses.

What are signs of potential foreclosure scams?

As a resident of the Washington D.C. area, you have likely been warned about foreclosure scammers and the bait they use to scam people with. This can make looking into foreclosure information somewhat tricky, because some of the information out there is false. So how can you tell the frauds apart from the real deal?

USA.gov states that it takes a keen eye to pick out foreclosure scammers before they have a chance to strike, but it is not impossible. There are a number of signs to look out for, as well as potential signs that you could be part of their primary target groups. For example, certain religious or ethnic groups are more likely to be targeted, so you should see who the main targets are in your area of residence. Likewise, if your home appears in foreclosure notices, scammers could find your information through the papers. Be wary of print advertisements, flyers and ads in your local paper advertising foreclosure services as well, as they are likely scams.

How can you boost your credit score after bankruptcy?

Have you had to file for bankruptcy in Washington, D.C.? Are you worried about the long term impacts that this might have on your credit record? We at Ammerman & Goldberg wish to help you understand your rights, options and outlooks when it comes to the relationship between bankruptcy and credit cards.

The first thing you should be aware of is the fact that a bankruptcy filing will remain on your score report for ten years at the least. This might be scary to you, and it is one of the reasons why anyone considering bankruptcy should weigh all their options to make sure that this is the right one for them. However, it is not actually as intimidating as it sounds. As soon as your debts have been discharged, you can work toward establishing better credit.

What are a lender’s legal obligations in a foreclosure?

If you are behind on paying your mortgage, you run the risk of falling into foreclosure with the bank. Lenders in Washington D.C. are able to repossess property when a homeowner fails to make his or her payments. While the property owner may be at fault for missing payments, lenders have responsibilities that they must follow when going through the foreclosure process.

Before lenders can repossess property, they must give the homeowner sufficient notice that he or she has defaulted on the mortgage, according to the American Bar Association. Furthermore, the lender must let homeowners know that they have options when it comes to resolving their default status. For example, the homeowner may choose to go through foreclosure mediation with the lender.

Making payments in a Chapter 13 bankruptcy plan

Once a debtor has filed for Chapter 13 bankruptcy in Washington D.C., he or she will be required to make payments to the trustee who is presiding over the case. The trustee will then distribute the funds according to the priority of the creditors. According to U.S. Courts, there are three types of claims: priority, secured and unsecured. Priority claims involve debts that are deemed most important by the court, and may include bankruptcy fees and taxes. Secured claims include debt that must be paid on items that could otherwise be repossessed by the creditor, such as vehicles or homes. Finally, unsecured claims involve debts in which the creditor does not have the ability to reclaim property.

Debtors have a few options when it comes to making their payments. They can send a payment directly to the trustee, or have the payments deducted from their paychecks. It is crucial that people make their bankruptcy payments o time or they may have their case dismissed. This means that the person who filed for bankruptcy will once again face the debts that they had prior to filing for Chapter 13. In some cases, the court may convert the Chapter 13 case to a Chapter 7, or liquidation bankruptcy. If this should occur, the debtor could have some of the property repossessed by the court’s trustee. The trustee will then sell the property, and distribute the funds to the creditors in order to repay the debt.

How can you rebuild your credit following a bankruptcy?

Although you may have recently declared bankruptcy in Washington D.C., there is still hope for your credit score and your financial future. When you file for bankruptcy, it can stay on your credit report for up to 10 years and your credit score may fall dramatically as a result. This is not surprising, as a credit score is an indicator of how well you are able to repay your debt. Fortunately, there are things you can do to rebuild your credit score and get back on track when it comes to securing your financial future.

According to the Huffington Post, the first step in regaining control of your credit is to get a copy of your credit report and ensure that everything is correct. It is only when you are familiar with your report that you can understand what it takes for you to reestablish your credit. Once you know your starting point, make sure to pay all of your bills on time. Late payments are often reported to the credit agencies, so it is crucial that you show creditors that you are able to make your payments on time.

Saving your home with Chapter 13 bankruptcy

Many people in Washington D.C. and across the nation continue to struggle to make ends meet. Staying on top of all of the medical expenses, mortgage payments, credit card bills and other types of debt can be extremely overwhelming. At Ammerman & Goldberg Bankruptcy Law Office, we understand that people may not be able to continue making their mortgage payments while dealing with all of the other debt that has accumulated in their lives. While people who file for Chapter 7 run the risk of losing their homes through liquidation bankruptcy, Chapter 13 enables people to stop foreclosure and keep their homes.

During a Chapter 13 bankruptcy, people are able to consolidate their debt into an affordable payment plan that allows them to pay off their debt in three to five years. Homeowners create a plan with the lender, which allows them to continue making their mortgage payments in exchange for keeping their house. Not only does this alleviate the stress of having to find a new place to live, but homeowners may find that bankruptcy has advantages over foreclosure.  A foreclosure indicates that the homeowner was unable to continue making payments on his or her home, while a bankruptcy shows that the borrower still made mortgage payments even after he or she filed for bankruptcy.

Washington D.C. worst place for student debt

When Washington D.C. residents wish to obtain a higher degree, they may apply for student loans in order to fund their educational endeavors. While some people are able to pay off their student loans in a reasonable amount of time, there are others who simply cannot make their loan payments. Soon the student loans turn to debt, and some graduates may find it difficult to pay off this large sum of money.

According to research conducted by WalletHub, university graduates in Washington D.C. may have the hardest time paying off their student debt and rebuilding credit when compared to students in other states across the country. Researchers found that while students in some states have a harder time paying off their student debt, other graduates are able to pay off their educational loans in a timelier manner. During the study, researchers looked at how many people in the state had student debt, their income and how much of their income goes to paying on student loans.

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