Bankruptcy and Insolvency

For individuals:

For individuals who have suffered exceptional economic difficulties, bankruptcy may offer a fresh start while dealing fairly with creditors. Individuals can file for relief from creditors under Chapter 7, Chapter 13, Chapter 12 (for family farmers) and even under Chapter 11.

Important changes to the bankruptcy laws became effective on October 17, 2005 – see “Bankruptcy Reform,” below.

Maryland residents: The exemptions available to individuals in bankruptcy have increased, making it easier for consumers to retain their property when filing bankruptcy. Please contact our office for the latest information.

The Fair Credit Reporting Act and Consumer Credit Protection Act govern the reporting of consumer credit.

The following statement, while it does not accurately or fully describe our services nor the role of attorneys in the bankruptcy process, nonetheless is required by 11 U.S.C. §528(a)(4):

“We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.”

For business entities:

For businesses, bankruptcy offers a period of relief from creditors' claims while reorganizing the business into a profitable enterprise. When reorganization is not reasonably possible, bankruptcy offers a fair and orderly way of liquidating the business entity. Our firm assists both individuals and businesses deal with financial problems, either through informal workouts or bankruptcy. The firm also provides creditor representation.

Bankruptcy Reform

2005 Amendments to Title 11, United States Code (Bankruptcy)

In October 2005, new amendments to the federal Bankruptcy Code became effective. Contrary to what you may have heard, it is still possible, and often is advantageous, for individuals and businesses that have experienced financial difficulties, to resolve their financial problems through bankruptcy.

The new amendments make a number of changes to prior bankruptcy practice. Some are minor, but several are substantial.

Four major changes stand out. First, the bankruptcy amendments require prospective debtors to have their financial circumstances reviewed by one of several nonprofit debt counseling agencies, in order to gauge whether bankruptcy may be an appropriate solution. Second, “means testing” is used to determine whether an individual has the resources to pay all or a portion of his debts under a bankruptcy plan. Third, the new law establishes objective allowances for food, clothing, rent, transportation, and other “necessary” expenses, based on national or regional averages. Fourth, bankruptcy attorneys must certify that they have made a reasonable, good faith investigation into a debtor’s financial circumstances, which was not required under the former law.

Please do not hesitate to contact Uptown Law, LLC if you are experiencing financial difficulties. We will evaluate your circumstances and help you determine whether bankruptcy can help.

Bankruptcy Research on the Internet:

U.S. Bankruptcy Code
U.S. Supreme Court Bankruptcy Decisions
U.S. Court of Appeals, 4th Circuit cases
United States Trustee
United States Bankruptcy Court/Eastern District of Virginia
United States Bankruptcy Court/District of Maryland
United States District Court - District of Maryland
Local Rules - U.S. Bankruptcy Court - Maryland (Adobe Acrobat format)
Local Rules - U.S. District Court - Maryland (Adobe Acrobat format)
Local Rules - U.S. Bankruptcy Court - Eastern District of Virginia (Adobe Acrobat format)

More Bankruptcy Resources:

American Bankruptcy Institute
Bankruptcy Bar Association of Maryland
Bankruptcy Statistics
National Law Journal - Bankruptcy
Internet Bankruptcy Library - Worldwide Troubled Companies
Worldwide Bankruptcy Resources