Certain things you own, or may be entitled to, do not become part of what is known as the "bankruptcy estate", because they are considered "exempt". Exemptions are extremely important since your claim to an exemption may be the deciding factor as to the Chapter of the Bankruptcy Code under which you will file - or whether or not to file at all. For example, if you own a home, all, or a portion of the equity in your home may be considered "exempt" property. If your home has more equity than allowed by the applicable exemption, and you wish to keep your home, then a bankruptcy under Chapter 7 would be out of the question, since in that type of the case, you could not protect your home. Likewise, in a Chapter 13 case, the amount of your monthly Plan payments may be governed by the amount of money that would have been generated had your non-exempt property been taken by a Trustee and sold.

Just what is exempt and what is not exempt is governed by statute. The Bankruptcy statute has a set of exemptions written into it, but many States have more generous exemptions written into their statutes. In some states, someone filing bankruptcy can choose which set of exemptions to use. In others, only the state exemptions are permitted. In still others, only the Federal Bankrutpcy exemptions may be used. Recent changes in the Bankruptcy Code have attempted to limit some of the state exemptions, and that can make a substantial difference in the way a bankruptcy is filed. Until several years ago, for example, a person's homestead was considered exempt property, regardless of the equity. Not so now. But generally speaking, unless these things are promised as collateral for a loan or a line of credit or are antiques, collectibles or particularly valuable, your clothing, household goods and furnishings, TV, stereo, an IRA, an ERISA qualified pension plan, veterans, disability, workers comp or unemployment benefits, a portion of the equity in your car and maybe even some money in the bank will be considered exempt property.

Don't take chances. Our bankruptcy attorneys are constantly monitoring the applicable exemption statutes and will know which exemptions will apply to your case and how to best protect your assets. We will explain your bankruptcy options to you, including how your ability to exempt certain assets will influence your decision to file bankruptcy. Our goal is to get you through the process and secure your discharge without losing the things you need to go on with your life.

Many are by now aware of the new bankruptcy laws that took effect in October 2005. Now, researchers at the Federal Reserve Bank of New York have concluded that the bankruptcy reform legislation has contributed significantly to the subprime mortgage foreclosure crisis. They're reasoning in part involves the favorable treatment afforded credit card and auto lenders, and the shifting of risk from those lenders to mortgage lenders. Under existing bankruptcy law, those with incomes above a certain "means" level do not qualify for Chapter 7 bankruptcy relief as they once did under the old law. Increasing unemployment will have a positive effect on the availability of bankruptcy, the researchers concluded, because those without income for the six months prior to a bankruptcy filing will not need to satisfy the "means test" and will fall below the median income cutoff that might otherwise disqualify them from filing for Chapter 7.

Learn more about Bankruptcy and Maryland law.

You may have heard that Bankruptcy can stop foreclosure. How does this work and how can it help you and your family? Typically our clients come to us because they are unable to pay their bills. This can happen for any number of reason, illness in family, unable to work, laid off their job, etc. Whatever the reason they may be unable to pay their bills and are harassed by creditors and could even be threatened with foreclosure.

Filling Bankruptcy in Maryland will actually immediately freeze the foreclosure process and the courts will even order the creditors to stop calling you. This freezing period is typically for 2 or 3 months. Using this valuable time you may be able to sell your home with a real estate agent. Selling your home with a real estate agent will typically bring you a much higher amount than being forced to sell at a foreclosure option.

Do you owe a 2nd or 3rd mortgage? Filing for Chapter 13 Bankruptcy can actually help you eliminate unsecured mortgage debt in Maryland. This means if you owe $400 a month for a 2nd and 3rd mortgage you may have that debt totally eliminated. This means you may be able to afford to keep your house.

Bankruptcy isn't right for everyone and there are limitations and restrictions. Speak to our experienced Maryland Bankruptcy lawyers today to find out if Bankruptcy is right for you.

We have added more information to our Bankruptcy section on legalteam.net. We have added two new articles.

Information on Maryland's New Foreclosure Law
Legislation was recently passed to assist homeowners facing foreclosure, find out what you need to know about this important law.

Chapter 7 Bankruptcy versus Chapter 13 Bankruptcy
There are two options available to those who wish to file Bankruptcy: Chapter 7 Bankruptcy (basically wiping out debt and starting over) or Chapter 13 Bankruptcy (trying to pay back creditors over an established period of time).

We'll be posting more information on Maryland's new foreclosure law and how it can affect you.