Blog - Law Offices Robert M. Stahl LLC

Escaping foreclosure

Sun, 10 Oct 2021 17:14:00 GMT

Foreclosure is the process of a lender or bank taking back a house because they are not getting the payments promised. It can be a scary and stressful thing.

When foreclosure happens, the lender takes over the house, residents have to move out and they may need to make additional payments to the lender, depending on the condition of the property. Though a foreclosure notice or payment issue may sound final, there are steps you can take to try and avoid losing your house.

Act fast. Don’t wait any longer to deal with your housing issues. The longer you push it off, the worse it will get. As soon as you realize the problem, take action.

Get up to date on your mail. Make sure you have reviewed all communications with your lender. When you receive statements and notices, it’s easy to put them away and say you will deal with them later. It’s important that you go through everything your lender has sent you and make sure you know what’s going on.

Look over your loan agreement. Revisit the documents you signed when you took out your loan and bought your house. Be sure to understand what you signed and what that means for foreclosure.

Talk to your lender. Lenders typically have different financing and payment options available if you are unable to make your payments. Talk with them about your situation and they may be able to help.

Understand your options. The government provides programs that may help you avoid losing your house. You can contact the U.S. Department of Housing and Urban Development to learn more about the options they provide. Talking with a legal professional can also help you know how to deal with the situation.

Assess your spending and assets. If you’re having trouble paying for your house, it’s probably time to look at your spending habits. Consider any unnecessary spending you have and create a new budgeting plan that prioritizes your mortgage. You can also consider selling some of your larger assets to help make your payments.

Don’t wait any longer to deal with your housing problems. If you’re having issues making your payments, be sure to communicate with your lender and other professionals before the problem gets worse. There may be ways to avoid losing your home to foreclosure.

The aftermath of filing for bankruptcy

Sun, 10 Oct 2021 17:13:00 GMT

Maryland residents who are struggling to pay their debts may benefit from filing for bankruptcy. However, if you are thinking about doing so, it is important to understand the impact it can have on your credit score and history. If you file for Chapter 7 bankruptcy, it can stay on your credit report for up to a decade.

START REBUILDING YOUR CREDIT IMMEDIATELY

While a bankruptcy can stay on a credit report for many years, you can start to rebuild your credit right away. This can be done by applying for a secured credit card. If you obtain a secured credit card , your credit limit is backed by a deposit held in a bank account. It may also be possible to obtain a store or gas station credit card to help reestablish your credit. Regardless of the type of credit that you obtain, expect to pay high interest rates and other fees to the lender.

YOU CAN ASK SOMEONE TO COSIGN ON A LOAN WITH YOU

One way to potentially eliminate fees or reduce the interest rate that you pay on a loan is to use a cosigner. Anyone over the age of 18 can act as cosigner assuming that individual has a sufficiently high credit score. Therefore, your best friend, parent or colleague could all agree to act in this role and help you rebuild your credit.

MAKE SURE TO CHECK YOUR CREDIT REPORT

It is important to ensure that debt balances that were eliminated in a bankruptcy proceeding are reported as discharged to the credit agencies. You will also want to be sure that the bankruptcy filing date has been accurately reported. Federal law allows you to request one free copy of your credit report from the major credit bureaus each year.

There may be many benefits to filing for bankruptcy such as obtaining an automatic stay of creditor contact. This may put an end to creditor phone calls, letters or other collection activities. An attorney may explain other benefits such as the potential ability to renegotiate home or auto loan terms.

How bankruptcy could erase IRS tax debt

Sun, 10 Oct 2021 17:11:00 GMT

Most people who fall behind on their federal taxes have trouble with the annual income tax payments. The recent onset of the gig economy and increase of freelance workers and remote workers in a variety of fields has made the problem even worse. If you fall too far behind, initially friendly letters from the IRS will transition into more serious ones that endanger your wages, your bank accounts and your personal property. Fortunately, bankruptcy law in Maryland provides an effective solution for many.

HOW TO STOP INITIAL COLLECTIONS

The first step to ending your IRS troubles via a potential bankruptcy filing is to file for an automatic stay in federal court. An automatic stay immediately ceases all debt collection activities against you while the automatic stay is in effect. That means no phone calls or letters from debt collectors, including the IRS. The automatic stay even stops possible loss of personal property, such as a financed vehicle on which you recently might have fallen behind on payments. Any creditors violating the automatic stay order will have to face the federal judge who issued it and stiff federal penalties.

POTENTIAL DISCHARGE OF YOUR TAX DEBT

A Chapter 7 federal bankruptcy filing could end in your federal tax debt being discharged and getting the IRS off your back. You need to provide a full accounting of all of your personal assets, including all personal property. You also need to provide a full accounting of all of your current debts. A federal bankruptcy trustee will review your case, along with any attorneys representing you, to determine whether a Chapter 7 bankruptcy is in order. If so, you could wind up with your federal tax discharged.

EXPERIENCE COUNTS IN CHAPTER 7 FILINGS

If you have never filed bankruptcy before, you likely have many questions about the process and the consequences. An attorney experienced in bankruptcy law may help you to decide whether pursuing a Chapter 7 bankruptcy is the best option for solving your tax dilemma.

Communication could help you avoid foreclosure

Sun, 10 Oct 2021 17:09:00 GMT

Purchasing a home with a mortgage loan represents a commitment. In order to keep your Maryland house, you have to make mortgage payments every month. Your lender reviewed your income and assets before approving your loan to ensure that you could afford the payments. However, at some point over the course of the 15- or 30-year term, you may be unable to pay. What happens next depends on how proactive you are and if your financial situation will allow you to start making regular payments again in the near future.

CONTACT THE LENDER

The first thing you should do if you know you aren’t going to be able to make your mortgage payment on time is to get in touch with your lender. Your loan servicer may not contact you after your first missed payment but could start foreclosure proceedings if you miss more than two in a row. Letting them know about your financial situation may give you access to options such as a repayment plan, forbearance or even refinance. These options might not be available if the lender takes steps to start foreclosing on your home.

SELL YOUR HOME

Some financial troubles are easier to resolve than others. If you weren’t able to make your mortgage payment because you had to replace your furnace, you might be able to recover quickly. However, if you can’t pay because your spouse left and he or she was the primary earner in your household, you may not be able to earn enough money fast enough to keep your house out of foreclosure. In that case, you might be able to avoid a significant decrease in your credit score by selling your home. This might be possible even if you owe more than the house is worth.

The threat of foreclosure may be worrisome, but there are options. It’s important to speak with a representative from your mortgage servicer to discuss the possibility of keeping your house or at least avoiding a foreclosure on your record. A bankruptcy attorney might help you explore other options that could help.

Are you having trouble paying your taxes?

Sun, 10 Oct 2021 17:07:00 GMT

If you can’t pay your taxes in Maryland, you don’t have to sit and wait for a tax audit. You could get in touch with the IRS ahead of time to figure out how you could pay your taxes or reduce the amount that you have to pay. You could even take out a loan to pay off your debts although you’ll still be responsible for paying off the loan afterward.

HOW CAN YOU AVOID AN IRS TAX AUDIT?

You can contact the IRS and ask for a payment plan if you don’t think you are able to pay your taxes all at once. One option is a short-term payment plan that lasts up to 120 days and has no extra fees. If you need more time, you could ask for a long-term payment plan. Your payments can be spread out over several months, but you might have to pay up to $149 a month in user fees.

Under tax law , you could also request an offer in compromise. This allows you to pay less than the full amount that you owe to the IRS. However, you’ll have to meet certain qualifications before you can request an offer in compromise. Since the IRS wants to collect money, the organization typically doesn’t offer this option except in extreme circumstances.

In any case, you might want to talk to a tax litigation attorney before you try to negotiate with the IRS. Your attorney may recommend different options and represent you if you get into legal trouble with the government.

WHAT IF YOU’RE NOT SURE HOW TO NEGOTIATE WITH THE IRS?

Negotiating with the IRS can be challenging, especially if you have back taxes or late payments on your record. An attorney may be able to help you negotiate for a payment plan, an offer in compromise or another option that works for your situation.

If you’re having trouble paying your bills altogether, an attorney may talk to you about possible options. This might include filing for bankruptcy so that you can get on top of your bills. Bankruptcy doesn’t wipe out back taxes, but it could help you get the rest of your finances in order so that you can make payments to the IRS.

Recovering medical costs in personal injury lawsuits

Sun, 10 Oct 2021 17:05:00 GMT

Maryland residents who suffer harm due to the negligent actions of others can pursue civil remedies by filing personal injury lawsuits. While litigation cannot undo the past and restore the plaintiff to the position they were in before the accident occurred, it can compensate victims for their out-of-pocket expenses and pain and suffering. The bulk of the damages in personal injury cases are awarded to cover the costs of medical treatment and make up for lost income, and they can be high when the plaintiff suffered life-changing injuries.

MEDICAL BILLS

The health care system in the United States is among the best in the world, but it is also very expensive. The kind of injuries suffered in workplace, slip-and-fall and motor vehicle accidents often require weeks or even months of treatment and physical therapy, which means the plaintiffs in personal injury cases may accrue tens of thousands of dollars in medical bills before their cases are settled or decided. Health care expenses that could be considered when determining personal injury damages include:

Ambulance and first responder fees
The costs of emergency room treatment
Bills from laboratories that perform diagnostic tests
The fees charged by doctors and specialists
Money used to purchase equipment like crutches or wheelchairs
The costs of physiotherapy and in-home services

CONTRIBUTORY NEGLIGENCE

Personal injury plaintiffs should gather as much evidence as they can before initiating litigation in Maryland because the state follows the contributory negligence doctrine . This means that plaintiffs cannot recover damages if they contributed in any way to causing the accident or their injuries. The vast majority of states follow the comparative negligence doctrine. In these states, the damages awarded to accident victims are adjusted to reflect their degree of fault.

ONGOING TREATMENT

The damages awarded in personal injury cases compensate accident victims for both expenses they have already incurred and costs they will encounter in the future. This is why experienced personal injury attorneys may consult with medical specialists when calculating damages in accident-related lawsuits. Experts could study medical records to determine the long-term costs plaintiffs are likely to face and the possible impacts their injures will have on their ability to work and earn a living.

How quickly can you stop wage garnishment?

Sun, 10 Oct 2021 17:02:00 GMT

Wage garnishment is one of the most powerful weapons in the debt collector’s arsenal, allowing creditors to seize up to 25% of a debtor’s wages per pay period.

From the debtor’s perspective, garnishment is a devastating turn of events. A person who was already struggling to make ends meet is suddenly losing up to a quarter of his or her paycheck. If a bad debt situation has resulted in wage garnishment or the threat of the same, do not lose hope. You have powerful legal options at your disposal.

EMERGENCY RELIEF IS AVAILABLE

By filing for bankruptcy, you can stop wage garnishment and other creditor actions almost immediately. As soon as you file, the automatic stay goes into effect. This is a legal injunction that bars debt collectors from garnishing wages, foreclosing on property and taking other legal actions against debtors. The automatic stay even prevents creditors from calling you.

Depending upon how fast you need relief and if your bankruptcy attorney is able to prioritize your case, you can stop wage garnishment in as little as one day.

WHAT HAPPENS NEXT?

After successfully stopping wage garnishment by filing for bankruptcy , you earn some breathing room from creditor actions and can continue with the process of resolving your debt situation. The next steps depend upon which chapter of bankruptcy you file under.

In a Chapte r 7 bankruptcy, your unsecured debt will be discharged after completing a legal process that takes around four to six months.
In a Chapter 13 bankruptcy, you will pay back all or a portion of your debt through a court-approved payment plan that lasts between three and five years.

Wage garnishment is one of the worst financial setbacks you can face, but the power is in your hands to stop it. Bankruptcy is not right for everyone, but for many it has proven the most effective means of overcoming problematic debt and moving on to a brighter financial future.