All items from Drescher Law

To complete your Maryland bankruptcy schedules and forms, you'll need to know whether you owe contingent, liquidated or disputed claims.   Let's talk about the meaning of the first term: a contingent claim.A contingent claim is a  liability that is not certain to occur and, actually, could occur only when a specific event happens.  For example, a classic case of a contingent liability is when you have someone's personal guarantee of a promissory note.  If the main borrower for that note doesn't default under the note, then the obligation for that guarantee will never come into play.  In other words, the obligation is contingent or dependent upon the occurrence of a default under the promissory note.   If the event doesn't occur, a default in this example, then there is no contingent claim.

Posted 9 weeks 5 days ago

There's nothing typical about Maryland bankruptcy cases. Each case is different based upon the client's income, expenses, assets and debts. Many people have defaulted on their bills for months or even years before they file for bankruptcy. Others struggle from month to month making mimimum payments and have credit scores in the 700s. Whether you're current or behind, however, does not affect whether you qualify to file for bankruptcy.The hardest part about bankruptcy is filling out the forms correctly. Listing your assets and assigning reasonable values; claiming the appropriate exemptions; accurately detailing your income and expenses; and navigating the means test are only a few of the complex issues that debtors must resolve in their bankruptcy cases. The good news is that debtors don't need to justify their bankruptcy filing; if the schedules are accurate and complete, and if the debtor cooperates with the trustee, then the relief will be awarded and the debts will be discharged.Creditors and other parties in interest have 60 days after the debtor meets with the trustee to object to the bankruptcy discharge. If there are no objections (and this is a strict deadline) the bankruptcy court will promptly enter the debtor's discharge. There will be no inquiry as to whether the debtor is current or not on their bills.

Posted 12 weeks 6 days ago

When you're completing Baltimore County bankruptcy schedules and forms, you have to answer whether any of your claims are contingent, liquidated, or unliquidated claims.  Unliquidated claims are also known as disputed claims.  The bankruptcy schedules and forms for Delaware, Maryland, Pennsylvania, or Virginia bankruptcies all ask you to provide this information.  So let's talk about what is involved with a disputed claim.We call it a disputed claim when there is a disagreement related to that liability and it's impossible for you and your creditor to agree upon the exact amount that is due under that claim.   When this happens, you and your lawyer together must figure out how the performing side has been damaged.  By accurately completing the bankruptcy schedule, you'll be able to go to court and present your evidence to the bankruptcy court and the trustee.  The court and trustee will determine the total amount of exposure that might be related to that claim. For more information, read What Is the Meaning of An Unliquidated (Disputed) Claim in a Maryland Bankruptcy?

Posted 16 weeks 1 day ago

When my clients ask, "Why is the trustee looking so closely at my bankruptcy case?" I tell them about trustee appointments.  Chapter 7 trustees are private attorneys appointed to a panel by the Department of Justice.  Trustees are paid only $65.00 per case according to statute and that is the full payment for approximately 95 percent of their cases.  By looking closely at benkruptcy schedules, in about 5 percent of their cases, trustees are able to identify assets.

Posted 18 weeks 18 hours ago

I want you to understand the difference between a bankruptcy dismissal and a bankruptcy discharge.  When you've filed for bankruptcy, whether in Maryland, Pennsylvania or elsewhere, discharge is the desired outcome of your filing.A bankruptcy discharge occurs when you have done everything you're supposed to do.   The court enters a discharge once:• you have confirmed a bankruptcy plan,• you have made all of the payments under a plan, or• when nobody objects to your bankruptcy in a Chapter 7 case,Once your discharge has been entered, your creditors1. can't sue you,2. can't get judgments, and3. cannot enforce their rights against your post-bankruptcy earnings.  I like to call this the "pot of gold at the end of the bankruptcy rainbow."A bankruptcy dismissal is something quite different.  Once you have filed a bankruptcy case, the court has jurisdiction over you and your property.  When certain events occur, the court may well decide that it no longer has jurisdiction and that you don't belong in bankruptcy.  If the court decides that it no longer has jurisdiction, your case is dismissed. 

Posted 21 weeks 5 days ago

Two years ago I wrote a blog item called 8 Pieces Of Life Changing Advice A Bankruptcy Lawyer Will Give You For Free. The blog was intended as a call to action for distressed debtors to seek legal advice, usually given for free, from a bankruptcy lawyer. One of the most important points I emphasized was that "Without paying a dime a client will learn that ... they should not invade their IRA or 401(k)". My conclusion? The seemingly exaggerated statement that This is free advice that, if taken, may change the course of lives, families and even generations.

Posted 22 weeks 18 hours ago

The client is told she'll have to pay something to the trustee in bankruptcy, and her heart sinks. But it doesn't have to be that bad.Every Chapter 7 client wants a "no asset" case, when a debtor's equity in his assets is less than allowed exemptions. But sometimes the client's commissions are just too high, or the car is paid off, or the tax refund is too generous, and there's no room left in the allowed exemptions.When this happens, the client should know that the trustee has his own tough choice: try to sell the assets on the open market, or strike a deal with the debtor? For most trustees who fear that their estate may only be worth a few thousand dollars, the ease of selling the assets back to the debtor far outweights the burden, cost and uncertainty of trying to get top dollar for the assets on the open market.These days, with so many clients still reeling from the real estate boom and bust of the last decade, the debt may have mushroomed to hundreds of thousands or even millions of dollars from homes or investment properties gone bad. Even clients who are eligible for Chapter 13 may choose instead to swallow hard and write a check to the trustee in order to put the mess behind them once and for all.

Posted 23 weeks 18 hours ago

In the final match in the first round, Las Vegas debtors Jerry Lewis and Jose Canseco square off to determine who will succeed to the round of 16. Jerry Lewis appeared in the infographic, The Bankruptcy Red Carpet; this is his story:

Posted 38 weeks 2 days ago

Elite athletes Johnny Unitas and Marion Jones face off in this first round matchup in the Plan of Reorganization Regional. Johnny Unitas was featured in the infographic, The NFL Bankruptcy Tailgate Party, and this is his story:Nicknamed “The Golden Arm,” the career of Johnny Unitas spanned three decades and saw him set record after record, winning the Most Valuable Player award three times.  Off the field, however, it was another story.

Posted 38 weeks 2 days ago

In this match, former Major League Baseball center fielder, Lenny Dykstra faces Taylor Armstrong, a former cast member of The Real Housewives of Bankruptcy.Lenny Dykstra appeared in the infographic, Baseball Bankruptcy Hall of Fame, and this is his story:

Posted 38 weeks 4 days ago