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	<title>Washington DC and Maryland Bankruptcy BLOG</title>
	<link>http://www.washingtondcmarylandbankruptcyblog.com</link>
	<description>Helping clients with their financial freedom</description>
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		<title>Redemption Provides Financial Freedom—For a Price</title>
        <pubDate>Fri, 18 May 2012 12:55:25 +0000</pubDate>
		<description><![CDATA[This week, I have been discussing the options available to debtors regarding car loans when filing Chapter 7 bankruptcy. On Monday, I talked about how surrendering a vehicle allows the debtor to walk away owing nothing, and on Wednesday, I discussed how reaffirming a car loan in bankruptcy allows the debtor to keep the car while remaining responsible for the debt as though he or she had never filed bankruptcy. The final option I wanted to discuss this week is the lesser-used process of redemption. Like reaffirmation, a redemption allows the debtor to keep an automobile. However, unlike the monthly payment agreed to as part of reaffirmation, redemption involves paying the lender the current value of the car in a single lump sum. While this option will prevent the debtor from having to continue making payments, redemption can be difficult because the debtor will have to pay the full value...<br /> <a href="http://www.washingtondcmarylandbankruptcyblog.com/2012/05/redemption-provides-financial-freedom-for-a-price/">Read More &#187;</a>]]></description>
		<link>http://www.washingtondcmarylandbankruptcyblog.com/2012/05/redemption-provides-financial-freedom-for-a-price/</link>
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		<title>Reaffirming a Car Loan in Chapter 7</title>
        <pubDate>Wed, 16 May 2012 12:53:30 +0000</pubDate>
		<description><![CDATA[On Monday, I discussed what happens when a debtor surrenders an automobile as part of filing Chapter 7 bankruptcy. As I said, the biggest drawback of going that route is that the individual will then have to find a different form of transportation. For a number of my clients, giving up their vehicles would only make life more difficult. Fortunately, one option for such clients is reaffirmation. By reaffirming a car loan, the debtor agrees to be responsible for the debt as though he or she did not file bankruptcy. This option can be preferable to surrendering a vehicle because the debtor will not have to obtain a new loan on a new automobile with new terms. Instead, reaffirmation allows the debtor to secure the interest rate and payment instead of surrendering the vehicle and obtaining a new vehicle at much higher rates, usually financed through a subprime lender. To...<br /> <a href="http://www.washingtondcmarylandbankruptcyblog.com/2012/05/reaffirming-a-car-loan-in-chapter-7/">Read More &#187;</a>]]></description>
		<link>http://www.washingtondcmarylandbankruptcyblog.com/2012/05/reaffirming-a-car-loan-in-chapter-7/</link>
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		<title>Surrender Your Car in a Chapter 7 (But Don’t Give Yourself Away)</title>
        <pubDate>Mon, 14 May 2012 12:55:38 +0000</pubDate>
		<description><![CDATA[I have frequently written about what can happen to a client’s home when filing Chapter 7 or Chapter 13 bankruptcy, but another type of major asset that is of frequent concern for many clients is the car. While a debtor can often catch up on late payments or even get the amount owed on a vehicle reduced through a Chapter 13, a person filing Chapter 7 has three options regarding his or her automobile: reaffirm, redeem or surrender. Today, I wanted to discuss surrendering your vehicle. This option is often the best decision for debtors who can no longer afford a high monthly payment or whose cars are “underwater,” meaning they owe more than the vehicle is worth. A debtor who surrenders a car, truck or van can benefit immediately by no longer being on the hook for the remaining balance on the loan. This can be especially beneficial for...<br /> <a href="http://www.washingtondcmarylandbankruptcyblog.com/2012/05/surrender-your-car-in-a-chapter-7-but-dont-give-yourself-away/">Read More &#187;</a>]]></description>
		<link>http://www.washingtondcmarylandbankruptcyblog.com/2012/05/surrender-your-car-in-a-chapter-7-but-dont-give-yourself-away/</link>
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		<title>Credit Counseling Can Help Some, But Not All</title>
        <pubDate>Fri, 11 May 2012 12:56:03 +0000</pubDate>
		<description><![CDATA[This week, I have been discussing the number of services that are advertised as alternatives to bankruptcy, but often cause even more harm for a number of desperate consumers already facing hard times. The last groups that I wanted to touch on this week are credit counseling organizations, which should not be confused with the counseling required before filing Chapter 7 or Chapter 13 bankruptcy. The Federal Trade Commission notes that “many credit counseling organizations are nonprofit and work with you to solve your financial problems,” but still cautions consumers aware that “just because an organization says it&#8217;s ‘nonprofit,’ there&#8217;s no guarantee that its services are free, affordable, or even legitimate.” The FTC notes that some organizations “charge high fees, which may be hidden, or urge consumers to make ‘voluntary’ contributions that can cause more debt.” The main problem with credit counseling is that it simply cannot work for everybody....<br /> <a href="http://www.washingtondcmarylandbankruptcyblog.com/2012/05/credit-counseling-can-help-some-but-not-all/">Read More &#187;</a>]]></description>
		<link>http://www.washingtondcmarylandbankruptcyblog.com/2012/05/credit-counseling-can-help-some-but-not-all/</link>
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		<title>What Does Debt Settlement Really Settle?</title>
        <pubDate>Wed, 09 May 2012 12:58:16 +0000</pubDate>
		<description><![CDATA[I referred to the rise in complaints regarding what the Federal Trade Commission (FTC) referred to as “so-called credit repair clinics” in Monday’s post, but today I wanted to discuss another supposed alternative to Chapter 13 bankruptcy that generates far more complaints to the Better Business Bureau (BBB): the debt settlement industry. Back in 2006, BBBs nationally received 86 complaints regarding debt settlement companies. Five years later, the number skyrocketed to 5,385. The FTC says debt settlement programs “can be very risky, and have a long term negative impact on your credit report and, in turn, your ability to get credit.” Online advertisements for debt settlement companies will try to instill fear in consumers that they will be unable to qualify for Chapter 7 and then claim to be a shorter-term alternative to Chapter 13. Debt settlement companies are supposed to work as a sort of savings account, setting up...<br /> <a href="http://www.washingtondcmarylandbankruptcyblog.com/2012/05/what-does-debt-settlement-really-settle/">Read More &#187;</a>]]></description>
		<link>http://www.washingtondcmarylandbankruptcyblog.com/2012/05/what-does-debt-settlement-really-settle/</link>
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		<title>Credit Repair Companies Can Cripple Consumers</title>
        <pubDate>Mon, 07 May 2012 12:57:38 +0000</pubDate>
		<description><![CDATA[The word bankruptcy still carries too much of a negative stigma for many people, even those who are overwhelmed with credit card debt because of an illness or a job loss and stand to benefit the most from it. People associate filing bankruptcy with failure, but if they are in too far over their heads, they could fall victim to a scam that may even claim to be an alternative to bankruptcy. I understand that the Federal Trade Commission (FTC) says “personal bankruptcy generally is considered the debt management option of last resort,” but too many consumers end up making bad situations worse by being lured into supposed alternatives to filing for Chapter 7 or Chapter 13 bankruptcy. One particular industry that has been growing in recent years is “credit repair,” with the Better Business Bureau reporting that complaints to BBBs nationally have risen from 133 in 2006 to 711...<br /> <a href="http://www.washingtondcmarylandbankruptcyblog.com/2012/05/credit-repair-companies-can-cripple-consumers/">Read More &#187;</a>]]></description>
		<link>http://www.washingtondcmarylandbankruptcyblog.com/2012/05/credit-repair-companies-can-cripple-consumers/</link>
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		<title>Taking Credit to Get Credit</title>
        <pubDate>Fri, 04 May 2012 12:52:10 +0000</pubDate>
		<description><![CDATA[The last point I touched on in Wednesday’s post on rebuilding credit after filing Chapter 7 or Chapter 13 bankruptcy was to apply for a secured credit card, which works like a prepaid credit card in the sense that you deposit money in your account and use the card like a debit card. While this is certainly a “necessary evil” as part of rebuilding credit, an individual who just had his or her bankruptcy discharged needs to take extreme caution when filling out any credit card application. First of all, you should wait until you can afford to pay a credit card bill before applying for any new accounts. As I said on Wednesday, you will receive multiple offers from lenders that are anxious to extend you credit. If you have just filed bankruptcy, these lenders are fully aware that any new debt you amass will not be discharged through...<br /> <a href="http://www.washingtondcmarylandbankruptcyblog.com/2012/05/taking-credit-to-get-credit/">Read More &#187;</a>]]></description>
		<link>http://www.washingtondcmarylandbankruptcyblog.com/2012/05/taking-credit-to-get-credit/</link>
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		<title>Three Steps to Rebuild Your Credit After Bankruptcy</title>
        <pubDate>Wed, 02 May 2012 12:55:10 +0000</pubDate>
		<description><![CDATA[As I discussed on Monday, many of my clients express tremendous concern about how and when they will be able to rebuild their credit. While a Chapter 7 or Chapter 13 bankruptcy may immediately send your credit score downward by as much as 200 points, I have also seen clients reach a score in the 700s after going a year with no late payments or collections. Generally, there are three major steps that can make this happen: Make all payments on time — If you are serious about repairing your credit score, then this step is a must. You would be wise to prioritize your monthly payments, making sure that payments for a home, car or any other secured loan are always paid first. Any and all payments that are reported to the credit bureau are ones that you absolutely must make sure to have paid on time, every time....<br /> <a href="http://www.washingtondcmarylandbankruptcyblog.com/2012/05/three-steps-to-rebuild-your-credit-after-bankruptcy/">Read More &#187;</a>]]></description>
		<link>http://www.washingtondcmarylandbankruptcyblog.com/2012/05/three-steps-to-rebuild-your-credit-after-bankruptcy/</link>
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		<title>There is a Road to Recovery After Bankruptcy</title>
        <pubDate>Mon, 30 Apr 2012 12:58:48 +0000</pubDate>
		<description><![CDATA[An area of common concern with many of my clients before, during and after filing for Chapter 7 or Chapter 13 bankruptcy has to do with credit ratings. There are probably an untold number of people who could stand to benefit greatly from filing bankruptcy, yet never step foot in an attorney’s office simply because they fear their credit ratings will be irreparably harmed. This is a common misconception, and this week I wanted to write specifically about not only the effect bankruptcy can have on your credit, but also how it can help improve your credit score over time. The truth is, for many of my clients, months of late payments while carrying unsecured debts have already resulted in significantly low credit scores. While your credit score will indeed take a hit when your bankruptcy is first filed, having many or all of these debts discharged can actually help...<br /> <a href="http://www.washingtondcmarylandbankruptcyblog.com/2012/04/there-is-a-road-to-recovery-after-bankruptcy/">Read More &#187;</a>]]></description>
		<link>http://www.washingtondcmarylandbankruptcyblog.com/2012/04/there-is-a-road-to-recovery-after-bankruptcy/</link>
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		<title>How One College Graduate Paid Off More Than $20K in Student Loans in Less Than Four Years</title>
        <pubDate>Fri, 27 Apr 2012 12:58:13 +0000</pubDate>
		<description><![CDATA[On Wednesday, I talked about the number of college students now carrying thousands of dollars in credit card debt. Combined with student loan debt that has reportedly reached about $870 billion, millions of college graduates leave school with extensive financial liabilities. On April 12, 2012, Business Insider published the story of one student who “graduated from journalism school with a master of arts, new friends from around the world … and a decade’s worth of student loan debt.” Laura Shin said, “I had somehow managed to reach my mid-30s without having a clue how to manage my finances.” After graduating with “just” $20,500 in May 2008, Shin said that two years later she was $6,500 in credit card debt and $18,432 in student loan debt. That September, she said she “figured out that, depending on how fast I wanted to pay my loan and amass savings, I had to live...<br /> <a href="http://www.washingtondcmarylandbankruptcyblog.com/2012/04/how-one-college-graduate-paid-off-more-than-20k-in-student-loans-in-less-than-four-years/">Read More &#187;</a>]]></description>
		<link>http://www.washingtondcmarylandbankruptcyblog.com/2012/04/how-one-college-graduate-paid-off-more-than-20k-in-student-loans-in-less-than-four-years/</link>
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