Many Americans are living on the edge of insolvency. All it takes is one illness or job loss and they begin to fall hopelessly behind with their bills. Even with unemployment or disability benefits, it’s impossible for them to keep up. The very first month they can’t pay their bills, they should consider talking to one of the Bankruptcy Lawyers in Baltimore for help. People are often ashamed to admit they have financial problems. It only makes things worse to wait. The lawyer has heard it all and will treat them with respect.
The debtor should bring their past few tax returns and a listing of their debts and assets to their first meeting with their lawyer. This will help him determine which bankruptcy strategy is best for them. People who make less than the median income for the state of Maryland are able to use Chapter 7 of the bankruptcy law. This is often known as the Fresh Start bankruptcy law. That’s because in less than six months the process is complete and the person is able to start rebuilding their life.
In a Chapter 7 bankruptcy filing, the judge appoints a trustee to sell off all of the person’s assets. The proceeds are then divided among the creditors. Usually there isn’t enough to pay all of the debts. Whatever debts are left unpaid are forgiven. State and federal law usually exempt certain assets such as the person’s house, car and clothing. This can vary among states. Bankruptcy Lawyers in Baltimore make sure that the trustee only sells what they are allowed to sell.
If a person makes more than the Maryland median income, then they usually have to use Chapter 13 of the bankruptcy law. This is a financial reorganization plan and can take up to five years to complete. In this case the bankruptcy trustee examines the debtor’s budget. They determine how much they need to live and then everything else is given to the creditors each month. The debt that can’t be repaid isn’t forgiven until process is complete. This process can take up to five years. If a debtor fails to make even the last payment, then the debt will not be forgiven.
You can consult Law Offices of Frank E. Turney, P.A. for bankruptcy lawyers in Baltimore
