Practice Areas and Legal Definitions

Bankruptcy Laws:
Bankruptcy is a federal court process designed to help individuals and businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as liquidation or reorganization. Under a liquidation bankruptcy (Chapter 7), a claimant files to eliminate debt through the bankruptcy court. Under a reorganization bankruptcy (Chapter 13), a claimant files a plan with the bankruptcy court proposing how to repay creditors.

In 2005, the requirements under which a debtor could file Chapter 7 bankruptcy changed with the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act.  Debtors are now required to seek budget and credit counseling within six months of filing, financial “testing” is required to determine the debtor’s capacity for debt repayment, Chapter 7 cannot be filed if the household income is greater than the median household income as deemed by the state, and state exemptions cannot be applied unless the debtor has resided at current residence for over two years.

Due to the imposed requirements for Chapter 7 bankruptcy as set forth by the new laws, debtors who were eligible to file under Chapter 7 now have to file under Chapter 13 bankruptcy instead, in which individuals and creditors agree to a court-imposed plan that requires some or all debts be repaid over five years, with an appointed trustee assigned to monitor the repayment process. Bankruptcy filings will continue to be recorded on an individual’s credit report for seven years in the case of Chapter 13, and up to ten years for Chapter 7.

Chapter 7 Debtor Bankruptcy:
Chapter 7 cases are commonly referred to as straight bankruptcy or liquidation cases, and may be filed by an individual, corporation, or a partnership. A Chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in Chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a trustee will liquidate the debtor's remaining assets. Accordingly, potential debtors should realize that the filing of a petition under Chapter 7 may result in the loss of property.

Chapter 13 Debtor Bankruptcy:
A Chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. Chapter 13 permits individuals to keep their property by repaying creditors out of their future income.  It is not available to corporations or partnerships. After completion of payments under the plan, Chapter 13 debtors receive a discharge of most debts.

Debt Consolidation:

Contrary to popular belief, debt consolidation is not a loan. Debt consolidation is a process in which debt is restructured into one low monthly payment. It further enables a consumer to reduce the amount owed and thereby eliminate interest. Very often a consumer can detect warning signs of being in too much debt long before any collection notices are received. If more than two of the following signs apply to you, you are probably in too much debt:

• You have begun charging to your credit card essential expenses like food and daily expenditures
• You are making only the minimum payments on your credit cards each month
• You are near the limit of your credit cards
• You have too many credit cards
• You are unsure how much money you owe creditors

Chapter 11:
Chapter 11 is typically used for business bankruptcies and restructuring. It is not commonly used by individual consumers since it is far more complex and expensive to pursue. It allows businesses to reorganize themselves, giving them an opportunity to restructure debt and get out from under certain burdensome leases and contracts. Typically a business is allowed to continue to operate while it is in Chapter 11, although it does so under the supervision of the Bankruptcy Court and its appointees.

If you or someone you know needs the assistance of an experienced Baltimore Bankruptcy attorney, call Robert Scarlett of Scarlett & Croll, P.A., today at 866-729-8592, or complete the contact form provided on this site to schedule a free consultation.

If you or someone you know needs the assistance of an experienced Baltimore Bankruptcy attorney, call Robert Scarlett of Scarlett & Croll, P.A., today at 866-729-8592, or complete the contact form provided on this site to schedule a free consultation.

ADDRESS OF THE FIRM:
Scarlett & Croll, P.A.
201 North Charles Street, Suite 600
Baltimore, MD 21201
Phone: 866-729-8592
Hours: M-F, 8:00AM-5:00PM

MEMBERS OF THE FIRM:

• Robert B. Scarlett
• Andrew M. Croll
• Michael S. Myers

Robert B. Scarlett

Robert Scarlett is one of the Firm’s founding members and concentrates his practice in creditors’ rights and bankruptcy law, including representing creditors and debtors in workouts and in bankruptcy proceedings. His practice also includes business and civil litigation and general corporate representation. He represents clients before federal and state courts and administrative agencies.

In 1982, Robert was admitted to practice law in the State of Maryland by the Maryland Court of Appeals. He was admitted in 1982 to the bar of United States District Court for the District of Maryland, including its trial bar. In 1984, he became a member of the bars for United States District Court for the District of Columbia, United States Court of Appeals for the District of Columbia and the District of Columbia Circuit Court. In 1986, Mr. Scarlett became a member of the bars for the United States Tax Court, United States Court of Appeals for the 4th Circuit, and the Supreme Court for the United States. He was also admitted in 2002 as a member of the bar for United States Court of Appeals in the Third Circuit and, in 2007, became a member of the bar for the United States Court of Federal Claims.

Education:

• St. Lawrence University (A.B., 1976)
  
• University of Notre Dame, South Bend, Indiana (M.B.A., 1978)
  
• University of Baltimore School of Law (J.D., 1982)

Professional Memberships & Achievements:

• Mr. Scarlett has been awarded an "AV" rating by Martindale-Hubbell, which is the highest rating an attorney can receive. He is listed in the Bar Register for Preeminent lawyers, as published by Martindale-Hubbell.
• American Bar Association
• Of Counsel to the Hudgins Law Firm, Alexandria, Virginia
• Maryland State Bar Association
• The District of Columbia Bar Association
• The Bankruptcy Bar Association for the District of Maryland
• Pro Bono Work – Volunteer Counsel to the National Ski Patrol

Andrew M. Croll

Mr. Croll was born in Baltimore on December 5, 1959. He earned a bachelor’s degree in Political Science from The University of Michigan and a law degree from Washington University School of Law. Mr. Croll’s practice is concentrated in the areas of creditors’ rights, bankruptcy and commercial litigation. He is admitted to practice before the Court of Appeals of Maryland, the United States District Court for the District of Maryland, the United States Courts of Appeals for the Third and Fourth Circuits, the United States Court of Claims, the United States Tax Court, and the Supreme Court of the United States. Reported cases briefed and argued by Mr. Croll include Schumacher & Seiler, Inc. v. Fallston Plumbing, Inc., 91 Md. App. 696, 605 A.2d 956 (1992) (concerning whether certain exemptions from execution set forth in the Maryland Code are available to legal, rather than natural, persons); First Va. Bank - Central Md. v. Schumacher & Seiler, Inc., 97 Md. App. 432, 630 A.2d 256 (1993) (concerning the release of garnished property during the ten-day automatic stay period); Mercantile Club, Inc. v. Scherr, 102 Md. App. 757, 651 A.2d 456 (1995) (concerning the liability of a surety for the debt of a primary obligor that discharged its obligation in bankruptcy); and Kreisler v. Goldberg, 478 F.3d 209 (4th Cir., 2007) (concerning the applicability of the bankruptcy automatic stay to the non-debtor subsidiary of a bankrupt debtor). Mr. Croll has lectured on creditors’ rights, bankruptcy, and collection law.

Education:

• The University of Michigan, College of Literature, Science and the Arts (A.B., 1982)
• Washington University School of Law (J.D., 1987)

Professional Memberships & Achievements:

• American Bar Association
• Maryland State Bar Association
• The Bar Association of Baltimore City
• Bankruptcy Bar Association for the District of Maryland

Michael S. Myers

Mr. Myers is admitted to the bars of the Court of Appeals of Maryland, U.S. District Court, District of Maryland; U.S. Court of Federal Claims; and U.S. Court of Appeals, Fourth Circuit.

Mr. Myers concentrates his practice in the areas of bankruptcy, creditor’s rights, debtor’s rights, and general civil litigation matters. Mr. Myers also performs pro bono work for the Civil Justice Network.

Education:

• University of Maryland, Baltimore County (1997)
• University of Baltimore School of Law (J.D., 2006)

Professional Memberships & Achievements:

• Maryland State and American Bar Associations
  
• Bankruptcy Bar Association for the District of Maryland
• Maryland Trial Lawyers Association
  
• Bar Association of Baltimore City