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MARYLAND EXEMPTIONS: DISCUSSION
- You own a car. It cost you $10,000.00. You owe $9,100.00.
Your equity is $900.00 and may be claimed
under exemptions. As
long as you continue to make all payments, you may keep the
car.
- You
own a car which has gone way
down in value (fire, accident,
etc.). It cost you $10,000.00
and is worth $1,000.00. You
owe $9,000.00 on it. You have,
therefore, no equity in the car
so you need not use up your
exemptions to keep it. You may keep it by either:
- paying lender $1,000.00 in cash all at once or
- continue to make monthly payments on time. The debt of $9,000.00 is extinguished but you must either pay $1,000.00 now or make payments monthly for so long as you wish to keep the car. It may be cheaper to make regular monthly payments for a year or so and give the car back to the lender then
- In 1980 you borrowed $5,000.00 to consolidate several
small loans. The finance company
took a security interest in
all your household furnishings.
Any such household lien arising after 6 November
1978 is voidable. Any judicial
lien arising after 6 November 1978 (court
judgment) is voidable to the
extent it effects your exemption equity,
but is not voidable beyond that.
- Remember, most recent federal income taxes, all withholding
taxes, most recent state taxes,
all child support, fraudulently
obtained credit, non-listed debts
(i.e., creditor not named in
petition), all alimony, all student loans,
all criminal restitution orders,
and fiduciary fraud debts are not discharged in a Chapter
7. If you forget to list a creditor,
you may usually add them until
the case is closed, but the court
will charge you $20.00, which we do not cover.
- You will have to attend a
six (6) minute “Meeting of Creditors” in
Salisbury (Kent & Queen Anne go to
Baltimore). “Discharge hearings” are no
longer held. You will
be notified well in advance.
- It is essential that you list all of your assets and
all of your debts.
- Utility companies are required
by law to continue service,
as is the telephone company. They may require
a two (2) months deposit
based on your prior average usage. The old bill will
be wiped out.
- Hospitals cannot refuse emergency service. Easton
Memorial sometimes will refuse routine work unless
the old bill
is paid.
- Bankruptcy will appear on
your
credit report for up to ten (10)
years. Generally, however, you become a better credit
risk because you are no
longer loaded down with debts
(i.e., better ability to pay them) and
because
you cannot file bankruptcy for six (6) years.
- All debts contracted by you after filing are legally
enforceable.
- You may own property in your
name before, during and after filing bankruptcy.
- Ordinarily, the proceedings
are not a matter
of public publication on the
Eastern Shore and people will
only know you have filed bankruptcy if they are notified
as creditors or if you tell them.
Foreclosure (public auction)
sales by secured creditors or
the Trustee are advertised, by
law, for three (3) weeks in a
local paper.
Always keep us posted if you change your address or telephone
number.
- Absent fraud on your part,
our fee
covers all aspects of your bankruptcy.
There are no hidden charges,
additional hourly rates at anytime,
telephone consultation charges,
postage, mileage, or other charges.
Other firms
may have a lower initial charge
but everything after the initial
filing is on an hourly or “per
unit” basis. Your charge covers everything related
to your
bankruptcy (i.e.,
but not
preparation of a will, divorce, incorporation,
real
estate settlement or tax preparation.) Our fee
in a corporate bankruptcy does not include representation
of any shareholder, officer, director or employee
in litigation that may involve them personally,
as distinct from the corporation.
- Bankruptcy is a “fresh start” for those who honestly cannot handle their debts. The new Bankruptcy Code was enacted in 1978 by Congress and has truly given a “fresh start” to thousands of Americans since then.
ALEXANDER GORDON, IV
822-3702
4/84 AGIV/psb
1/86, 3/88, 2/90, 11/98; 12/03
This is the end of the Bankruptcy handbook
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