Bankruptcy Attorney Washington, D.C. Services

Explore Your Debt Relief Options in Maryland and Washington, D.C.

There are many circumstances that can cause hard-working, honest individuals to experience financial difficulties. Losing a job, medical bills, or an unexpected event can quickly make your finances unmanageable. Our bankruptcy attorney at the Law Firm of Kevin D. Judd has over 25 years of legal experience and can provide the no-judgment representation you need to get your life back on track. Our bankruptcy services in Washington, D.C., are designed to eliminate or consolidate your debt, stop foreclosure, and restore your financial freedom.

In addition to assisting you through the filing process, we provide ongoing support to help rebuild your credit and educate you on financial management strategies to prevent future financial pitfalls. Our comprehensive approach aims to not only address current challenges but also equip you with the tools to achieve long-term financial stability.

Schedule a free initial consultation to learn more about whether bankruptcy may be right for you. Contact us online or call (202) 888-8454 to discuss your situation with our team.

Let Our Bankruptcy Lawyer Review Your Case

If you need knowledgeable Maryland or Washington DC legal assistance to consolidate, eliminate or reorganize your debt, call the Law Firm of Kevin D. Judd at (202) 888-8454 or contact us online.

Our experienced team is committed to providing you with personalized guidance throughout the entire bankruptcy process. We take the time to understand the nuances of your financial situation, ensuring that the solutions we propose are specifically tailored to your needs. Whether you face foreclosure, mounting credit card debt, or need guidance on asset protection, our firm is here to offer compassionate, effective support.

What Do I Need to Know about Filing for Bankruptcy in Washington, D.C.?

If you are not already familiar with bankruptcy, you may understandably have several important questions. What can bankruptcy accomplish? What is the difference between Chapter 7 and Chapter 13? How would I go about filing?

Understanding the finer details of bankruptcy can be crucial for making informed decisions. It's important to consider the specific eligibility criteria and benefits of each bankruptcy type as well as understand the long-term impacts on your credit score and financial future. Our firm prioritizes educating clients on both immediate effects and future opportunities following bankruptcy, including potential impacts on credit, travel, and employment.

We encourage you to review the following resources to learn more about bankruptcy and what it can do for you:

Understanding Bankruptcy Options. Review your relief options and commonly used bankruptcy phrases.
Eliminate Debt with Chapter 7 Bankruptcy. Chapter 7 bankruptcy eliminates all dischargeable debt, including credit card and medical debt. Non-exempt assets will be liquidated to partially compensate creditors, but you can use available exemptions to protect most or all of your property. Some debts, including student loan debt and missed child support payments, are not dischargeable.
Reorganize Debt with Chapter 13 Bankruptcy. This type of reorganizational bankruptcy involves setting up a payment plan based on your projected future earnings. You will pay back a portion of your debts over three to five years. This form of relief can be a great choice for people who have reliable income but have fallen behind on making payments.
Stop Foreclosure with Bankruptcy. If you are in danger of losing your home to foreclosure, bankruptcy can be used to stop the process.
Strategies for Managing Consumer Debt. Find out what you can do to manage your debt and how to avoid dishonest “credit repair” services.
Navigating the Bankruptcy Means Test. Learn how the bankruptcy means test works and why you need to use it if you want to file for bankruptcy.
Bankruptcy Solutions for Student Loan Debt. If you are facing extreme financial hardship, bankruptcy may be able to help you eliminate your student loan debt.
Bankruptcy FAQs: Your Questions Answered. Get answers to common questions about bankruptcy laws and bankruptcy types.

Why Do Individuals & Businesses File for Bankruptcy?

Individuals and businesses file for bankruptcy for a variety of reasons. Here are some of the main reasons.

For Individuals:

Overcoming Overwhelming Debt: Accumulation of excessive debt, such as credit card debt, medical bills, or personal loans, may become unmanageable, leading individuals to seek bankruptcy protection.
Navigating Job Loss or Reduced Income: Sudden unemployment or a significant decrease in income can make it challenging for individuals to meet their financial obligations, prompting them to file for bankruptcy.
Medical Expenses and Bankruptcy: High medical bills resulting from unforeseen illnesses, accidents, or ongoing healthcare treatments can lead individuals to file for bankruptcy as they struggle to cover the costs.
Financial Strain from Divorce or Separation: The financial strain associated with divorce or separation, including legal fees, child support, and alimony, may push individuals to seek bankruptcy protection.
Avoiding Foreclosure or Repossession: When individuals face the threat of losing their homes due to foreclosure or their assets due to repossession, filing for bankruptcy can provide temporary relief and halt the process.

For Businesses:

Addressing Excessive Business Debt: Businesses may accrue significant debt from operational expenses, loans, leases, or unpaid invoices, making it difficult to maintain profitability and meet financial obligations.
Adapting to Declining Sales or Market Changes: A decline in sales, changes in the market, increased competition, or disruptive industry trends can cause financial distress and lead businesses to file for bankruptcy.
Legal or Regulatory Challenges and Bankruptcy: Businesses facing lawsuits, fines, or penalties, or struggling to comply with regulatory requirements may resort to bankruptcy as a means to address these challenges.
Resolving Partnership Dissolution through Bankruptcy: Disputes among business partners or the dissolution of a partnership can result in financial strain, leading to bankruptcy filings to resolve outstanding debts and liabilities.
Recovering from Natural Disasters or Catastrophic Events: Businesses affected by natural disasters, fires, or other catastrophic events may face significant property damage, loss of inventory, and interrupted operations, necessitating bankruptcy protection to recover.

Is Filing for Bankruptcy the Right Choice in Washington, D.C.?

If you are facing substantial debt, our bankruptcy services in Washington, D.C., may be able to help you overcome it. However, bankruptcy should only be viewed as a last resort. You should try all other options for managing and paying your debts before considering bankruptcy. This may include directly contacting your creditors to propose some type of loan settlement or repayment plan. If you already have a repayment plan, you may be able to negotiate lower payments. It may also be wise to sell certain valuable assets to cover your debts.

In addition, it is essential to conduct a cost-benefit analysis before deciding on bankruptcy. Consider the long-term advantages and drawbacks, such as the potential for discharge of debt versus the effect on your credit report. Equip yourself with comprehensive information and, if necessary, seek professional advice from our team to guide you through this challenging decision-making process.

You should also understand that filing for bankruptcy will negatively impact your credit. A Chapter 7 bankruptcy will stay on your credit report for up to ten years, while a Chapter 13 bankruptcy will remain for seven years. Our lawyers can analyze your unique circumstances and advise whether bankruptcy is right for you.

FAQs About Bankruptcy in Washington, D.C.

What Types of Bankruptcies Are Most Common in Washington, D.C.?

In Washington, D.C., Chapter 7 and Chapter 13 bankruptcies are among the most common types filed by individuals and businesses. Chapter 7, or liquidation bankruptcy, is preferred by those who lack substantial assets and need to eliminate unsecured debts like credit card balances and medical bills. Chapter 13, or repayment bankruptcy, suits individuals with regular income who wish to retain more of their assets, such as homes and vehicles. This form of bankruptcy allows reorganization of debts, providing a structured repayment plan over three to five years. Understanding which type of bankruptcy suits your needs is crucial, and our knowledgeable team at Law Firm of Kevin D. Judd can help you make an informed decision based on your financial circumstances.

How Does Washington, D.C. Law Impact Bankruptcy Proceedings?

Washington, D.C., follows federal bankruptcy laws, but there are local rules and regulations that may affect the process differently. These can include specific exemptions for property that residents can claim during bankruptcy, impacting what assets you may keep. For example, D.C. offers a homestead exemption that protects a certain amount of equity in a home, helping residents retain their primary residence during Chapter 7 proceedings. It's essential to understand these nuanced regulations, and our experienced legal team ensures compliance with both federal and local rules, protecting your rights and assets throughout the bankruptcy process.

What Is the Role of a Trustee in a Bankruptcy Case?

In bankruptcy proceedings, a trustee plays a pivotal role. Appointed by the court, the trustee manages the bankruptcy estate and oversees the process to ensure creditors receive fair compensation. In Chapter 7 cases, the trustee examines the debtor's assets, handles the liquidation of non-exempt assets, and distributes the proceeds to creditors. In Chapter 13 cases, the trustee evaluates the debtor's repayment plan and ensures timely disbursements to creditors as per the plan's terms. The trustee acts as an intermediary, ensuring the process runs smoothly and efficiently. Collaborating with the trustee, our legal team at Law Firm of Kevin D. Judd ensures your bankruptcy case proceeds without undue delays, maintaining compliance and advocating for your best interests.

Can Bankruptcy Stop Debt Collection Harassment?

Yes, filing for bankruptcy invokes an automatic stay—a powerful tool designed to halt all collection activities by creditors. This means once you file, creditors are legally required to cease their collection attempts, including phone calls, wage garnishments, and foreclosures. The automatic stay offers immediate relief from creditor harassment, providing much-needed space to reorganize or liquidate debts without external pressures. However, certain actions like child support payment collections might not be affected. At Law Firm of Kevin D. Judd, our legal team ensures this stay is enforced, protecting your peace of mind and financial health while working towards a sustainable, debt-free future.

What Are the Long-Term Effects of Bankruptcy on My Credit?

Filing for bankruptcy has long-lasting implications on your credit report and score, but it also offers a fresh start. Chapter 7 bankruptcy can stay on your credit report for up to ten years, while Chapter 13 bankruptcy impacts your report for seven years. This can affect your ability to secure loans or obtain favorable credit terms in the short term. However, many individuals find that their credit begins to improve sooner than expected, particularly if they adopt responsible financial habits, such as consistent bill payments and maintaining low credit card balances. At Law Firm of Kevin D. Judd, we support clients in understanding and navigating these long-term effects, offering guidance on steps to rebuild credit effectively, including the use of secured credit cards and credit-building loans. With a strategic approach, you can work towards restoring your creditworthiness over time.

Give us a call at (202) 888-8454 or contact us online to get started.

The Chapter 7 Bankruptcy Process Explained

Chapter 7 bankruptcy may be able to provide substantial relief if you have limited income and need to efficiently eliminate dischargeable debt. Our bankruptcy lawyer at the Law Firm of Kevin D. Judd will represent you throughout each stage of the process and work to safeguard as much of your property as possible.

Chapter 7 is often referred to as liquidation bankruptcy, focusing on selling non-exempt assets to pay off creditors. This form of bankruptcy is generally best suited for individuals with limited income and few assets. It allows you to keep certain essential property while discharging unsecured debts, helping you start anew without the burden of past liabilities.

At your first appointment with our bankruptcy lawyer, you will need to bring:

Proof of income (either six months of pay stubs or documents related to retirement or disability income)
All documents evidencing and related to your debt obligations
A copy of your credit report
Copies of deeds to properties owned in the last three years
Copy of your last filed tax return

During our consultation, we will review a bankruptcy questionnaire (completed by you) to help us determine your Chapter 7 eligibility. Then, we will prepare you for your pre-bankruptcy credit counseling session. You can participate in this session via telephone or online.

What to Expect with Our Bankruptcy Process

Within one to two weeks of your initial appointment (and after you have completed your credit counseling session), you will return to our office to sign the bankruptcy petition we have prepared on your behalf. We will file your petition in court within a few days of obtaining the necessary signatures.

Our commitment to transparency ensures that you are kept informed throughout the entire bankruptcy process. We provide regular updates on your case status, answer any queries you may have, and ensure you understand each phase of the proceedings. Our team’s dedication to customer service aims to make this challenging time less stressful and empower you to make informed decisions about your financial future.

Approximately one month after submitting your petition, a brief meeting of creditors will be held. This meeting is typically short because we take the time to ensure your bankruptcy paperwork and filings are in order. Despite its name, creditors will only rarely appear at this meeting.

Approximately three months after the meeting of the creditors, the court will mail you your Chapter 7 bankruptcy discharge papers. Within this three-month time period, you will have to complete a qualifying education course in personal financial management. The bankruptcy trustee assigned to your case will also liquidate any non-exempt assets and facilitate partial payments to creditors.

The Comprehensive Chapter 13 Bankruptcy Process

Chapter 13 bankruptcy may be a better option if you have reliable income but cannot keep up with your financial obligations. This type of bankruptcy is often used to stop pending foreclosures and repossessions, and a Chapter 13 repayment plan gives you the opportunity to catch up on missed payments.

Chapter 13 is particularly beneficial for those wanting to protect significant assets from liquidation. By reorganizing your debt, you can address mortgage arrears, car loans, and other secured debts while potentially reducing the principal owed on unsecured debts. This approach not only allows you to manage your debts more sustainably but also offers the opportunity to improve your financial habits over time.

Like with Chapter 7 bankruptcy, you will need to bring certain documents to your first appointment with our firm. This will include proof of income, information about your debts, a copy of your last tax return, and copies of any deeds to property owned in the last three years.

During your first appointment, we will confirm you have enough disposable income to afford a Chapter 13 repayment plan. We will also set you up for your pre-bankruptcy credit counseling session.

Within one to two weeks of your original appointment, you will return to our office and sign the papers prepared for you by our attorney. In emergency situations, we can expedite this process, and you can return within one or two days to sign bankruptcy short forms. This can stop an imminent foreclosure on your home or the repossession of your vehicle.

After we file your case, you must pay all secured creditors on time. Secured creditors have liens against property you own, such as houses, vehicles, and certain types of personal property (including furniture and jewelry). In addition, you must commence plan payments to the Chapter 13 trustee one month after we submit your proposed repayment plan.

Consistent communication with creditors during this period is crucial. Our firm advises maintaining open dialogue with creditors to demonstrate your commitment to fulfilling your repayment obligations. We also assist you in managing any disputes or misunderstandings that may arise to maintain the integrity of your repayment plan.

Approximately one month after we file your bankruptcy petition, a meeting of creditors will be held. This meeting will generally last three to five minutes. The bankruptcy trustee will review your documents and verify whether you can afford to pay your regular monthly expenses in addition to your proposed plan payments.

Roughly three months after the meeting of creditors, a confirmation hearing will be held. The bankruptcy judge will review your filing, and, if you are current on plan payments, will confirm your Chapter 13 repayment plan.

After you have made all plan payments over the subscribed plan period (between three and five years), you will receive a Chapter 13 discharge, and your case will be closed. Any remaining unsecured debts will be eliminated. To obtain this discharge, you will also need to complete a qualifying personal financial management course.

Why Choose Our Bankruptcy Lawyers

Our bankruptcy services in Washington, D.C. include comprehensive assistance with each stage of the filing process. Give us a call at (202) 888-8454 or contact us online to get started.

Choosing Law Firm of Kevin D. Judd means choosing a partner in your financial journey. We pride ourselves on offering transparent, honest guidance to help you navigate your unique challenges. Our firm not only focuses on resolving present issues but also equips you with lifelong financial knowledge and skills to achieve a debt-free future. Our commitment to legal service is reflected in the success stories of the numerous clients we have assisted in reclaiming their financial autonomy.