If Your Financial Picture Is Bleak, a Visit to Bankruptcy Attorneys in Baltimore May Help

Mounting debt without a way to pay all of the bills can be very stressful. Financial problems can occur due to job loss, injury, illness or divorce. When there’s not enough money to pay the bills, a visit to Bankruptcy Attorneys in Baltimore may be the solution. Bankruptcy is governed by federal laws, but Maryland also has specific information that someone will need to file for bankruptcy. Maryland has bankruptcy exemptions which will determine what items an individual is permitted to keep during a bankruptcy procedure. Every individual that files for bankruptcy, whether it’s a chapter 7 or chapter 13 bankruptcy, must attend credit counseling and debtor education.

Determining the exemptions should be discussed with experienced bankruptcy attorneys in Baltimore. In addition, the type of bankruptcy that is filed will determine whether all of the debt will be erased or if a payment plan will be negotiated. Chapter 7 bankruptcy filing is a complete liquidation of assets less any exemptions. A trustee will be appointed to inventory and sell the assets to pay the creditors. This type of bankruptcy is a good option for individuals that have limited income to pay back the debt. Depending on the exemptions, an individual may be able to keep their car or their home based on the amount they owe and what the asset is worth.

Chapter 13 bankruptcy is a reorganization of the debt. A payment schedule will be arranged through the bankruptcy court and an individual may keep all of their assets. If all of the payments are made, the balance of the debt will be forgiven. This type of bankruptcy is usually used for individuals that are currently employed and have a means to pay back the debt. State and federal exemptions are not permitted to be mixed and matched during the bankruptcy procedure. One type of exemptions will be used for the entire process.

If you’ve found yourself with more bills than your current income can pay, bankruptcy may be an option to stop the harassing phone calls and foreclosure process on a home. If you’re looking to get out from under mounting debt, feel free to contact us.