Monthly Archives: August 2011

Will the bad economy increase bankruptcy filings?

Posted on by Tucker Clagett

All the economic news these days is doom & gloom. The stock markets are down, credit ratings are being downgraded, and the federal budget (which keeps this area afloat economically) is going to be cut. What does this mean for our regional economy? Will there be an increase in bankruptcy filings as a result of all this chaos?

The main driver in bankruptcy filings over the past 3 years or so has been the collapse of the housing market. People found themselves facing foreclosure when interest rates rose and home values plummeted. They had to file a bankruptcy to get out from under that giant mortgage.

But we suspect there are a lot of people who are on the edge, just barely hanging on and hoping for an economic turnaround. Now the promised economic turnaround looks to be further down the road than anyone thought. Home values have not risen. Jobs are not being created. And banks are holding back on millions of foreclosures that will be filed sometime soon. What will people do now?

We suspect there will be an increase in bankruptcy filings in the second half of 2011 as a result of this problem. Those who were barely hanging on and hoping for a miracle are going to have face reality and realize things are not getting better any time soon. Bankruptcy is going to be their only option.

What people do not realize is that bankruptcy is often a good option for them. Filing for bankruptcy is not nearly as bad as many people think. You can still live your life, keep your retirement plans, and move forward to a fresh start financially. It only takes a few years to rebuild your credit, and you will unburden yourself from debts that are crushing your future now.

If you have been holding on and hoping for a economic turnaround, perhaps it is time to at least find out what your options are. We offer a FREE consultation for anyone who is facing foreclosure, or wants advice on how to save their house, or needs to consider a bankruptcy. It won’t cost you anything but time to find out if bankruptcy is a good option for you. Call us today.

Read more about bankruptcy in our Free Legal Information library:

Terminating Child Support – not something you do lying down

Posted on by Cameron Methner

It’s finally happened! Your beloved son or daughter has reached the ripe old age of 18, they have graduated from high school, or they have reached the age of 19 and have emancipated (grown old enough).

If you are the one paying child support this means your legal obligation to pay child support is over. No matter your child custody situation, no matter whether you are going through a divorce, the State of Maryland no longer requires you to pay child support.

Now, there may be an agreement between you and the other parent to continue to pay. There may be specific reasons why you would still have to pay child support. But if not and you still have that wage lien coming out of your check every pay period, you are probably not so happy.

Even if you do not have a wage lien and you are paying the other parent directly, I can only imagine that the other parent is not so willing to stop those payments. The child support enforcement agency is not able to give legal advice and is not about to step in where the Court system should.

Get Help: Notify the Court of Emancipation

So what do you do? It is hard to believe, but the judicial system is not going to remember that your son or daughter has had a birthday. They are not going to know that you have a problem unless you, that’s right YOU, do something. So do something.

By something, I of course mean that you have to let the Court know that your paycheck should no longer be taken and that you no longer need to pay child support. They need to know that those payments should stop and that if you have been making payments when your child support obligation is over then there is a problem. You cannot however, “jump the gun”, you have to wait until your child has emancipated before you do anything. So, the day after their birthday or the day after high school graduation is the time.

Will I Be Reimbursed for Overpayment?

I often get questions about the overpayment, and whether that money can be reimbursed. Sadly, a majority of the time the Court defines that as a contribution to your child and is not inclined to give it back to you. However, if the money is still within the child support agency’s system and has yet to be deposited to the other parent’s account there is a slim, but possible chance.

Speak Up

The Court in every county is dealing with cases on all types of issues. If you do not tell them that you have a problem nothing is going to change.

But speaking to the Court takes a specific language that often can be difficult to understand without someone there to help. If you have questions or just want some information your best bet is to have a consultation and save yourself from paying more child support than you can afford.

Read more about Family Law and Child Support in our Free Legal Information library: