Maryland Bankruptcy Facts
Are you having a tough time lowering your bills in Maryland? Have you been suffering with growing debt that doesn’t seem to ever dissipate? Are creditors threatening to seize your property? If so, we are going to show you exactly how you can nip that debt in the bud and move on with your life without the constant nag of creditors.
When debtors can no longer pay what they owe in medical costs, credit card bills, mortgage payment, and other types of unsecured debt, bankruptcy may be just the ticket out of it. Read along to see if bankruptcy is right for you and how you can take that debt and get it wiped clean with the help of an experienced bankruptcy lawyer in Maryland.
What is Bankruptcy?
Bankruptcy is a declaration by an individual or business that are unable to pay their debt to creditors. It is a federal process that began as a tool used solely by creditors to recover what was owed to them, but these days, bankruptcy is a voluntary process that can completely turn your life around for the better. Depending on what your income is and what your financial goals are, there may be one or several chapters of the Bankruptcy Code that you may benefit from. However, there are usually two chapters that Maryland residents turn to in their time of financial need: Chapters 7 and 13. Each of these chapters can make a world of difference in the amount you owe creditors, but the path toward debt relief is widely different with both. Let’s explore each chapter in further detail to see if you may qualify for one or both.
Maryland Chapter 7 Bankruptcy
The majority of debtors in Maryland seek Chapter 7 bankruptcy protection because both individuals and businesses may file, it can eliminate debt the fastest (as little as three months), and can get rid of the most debt in general. This petition involves liquidating your assets (surrendering them to creditors) to be used as payment for your debts. As per federal law, all debtors in Maryland seeking bankruptcy protection must first undergo six months of credit counseling before filing for Chapter 7, but once approved, if the debtor’s income is determined to be lower than the state average for a family of the same size, then approval is usually granted for liquidation bankruptcy.
Maryland Chapter 13 Bankruptcy
Another option for debtors who are struggling with debt in Maryland is Chapter 13 bankruptcy protection. Unlike liquidation bankruptcy, Chapter 13 is known as the “reorganization bankruptcy” because assets are never seized. Instead, a payment plan is created so you can reimburse creditors over a period of three to five years. This is an appealing choice for debtors who do not want to liquidate their assets or who do not qualify for Chapter 7 because their income is too high. It is also preferred by home owners who are on the verge of foreclosure because it will prevent lenders from seizing the debtor’s property while they restructure their debts and pay them down.
Maryland Bankruptcy Attorneys
Aside from Chapter 7 and Chapter 13 bankruptcies, there are still four other chapters debtors can file in Maryland, so choosing the ideal one for your situation may not be as easy as you imagined. However, when you have an experienced bankruptcy lawyer on your side, you can rest easy knowing your case will resolve quickly and with the most favorable outcome.
Our site can help you access the best Maryland bankruptcy lawyers in your area so you can start to get rid of debt quickly and successfully. Contact one of our featured attorneys to day and start your path toward debt relief immediately.