How Maryland Bankruptcy Law Can Affect You While You Deal With Your Financial Situation
Understanding how bankruptcy laws are applied in Maryland, as in any other state, is crucial when facing financial challenges. This knowledge empowers you to plan your next move effectively. To understand the complexities of the bankruptcy process, connect with one of the leading bankruptcy lawyers in Maryland, USA.
The Maryland Bankruptcy Act stipulates that any individual debtor filing for bankruptcy must undergo credit counseling. This step must be completed six months before seeking bankruptcy relief. Applicants must also undertake a financial management course after the filing. These requirements underline the seriousness of the bankruptcy process and ensure you are fully prepared.
Chapter 7 or Chapter 13 Bankruptcy?
Chapter 13 bankruptcy can help you overcome financial situations that may seem hopeless. If you are struggling with mortgage or business payments and wish to retain property ownership, Chapter 13 offers a path to gradually catch up on overdue payments and reinstate the original mortgage terms. This option particularly benefits individuals with valuable assets they wish to retain, even if Maryland bankruptcy exemptions do not protect them.
Individuals may choose Chapter 13 bankruptcy because their income level exceeds the eligibility criteria for Chapter 7 or they have debts not dischargeable under Chapter 7, such as certain tax liabilities.
Chapter 7 is the most appropriate option for Maryland residents seeking to lessen their debt burden without the repayment obligation.
Chapter 7 Bankruptcy Advantages
- You can make a fresh start after discharge.
- Get immediate protection against creditor collection and wage garnishment.
- You can keep your earnings and acquired property after filing.
- There is no minimum debt requirement.
- The case is typically resolved within three to six months.
Maryland Chapter 13 Advantages
- You can keep exempt and non-exempt property if you can afford the payment plan.
- Debts can be reduced under the payment plan.
- Immediate protection against creditor collection efforts and wage garnishment.
- More debts are considered dischargeable.
- Co-signers are protected if the Chapter 13 plan provides for full payment.
- Protection against foreclosure on your home as long as you meet plan terms.
- More time to pay non-dischargeable debts like taxes or back child support.
- You can file Chapter 13 at any time and repeatedly.
Filing For Bankruptcy
To initiate the bankruptcy process, you must share details of your existing sources of income, major financial transactions from the past two years, monthly living expenditures, secured and unsecured debts, and all properties, including assets and possessions, not limited to real estate.
You must also have details of your tax returns from the last two years, deeds for any real estate you possess, car possession details, and paperwork related to any existing loans.
After you have compiled this information, whether independently or with the help of leading bankruptcy lawyers in Maryland, USA, the next step is to identify which assets you believe are protected from seizure under the Maryland exemptions.
You must submit many other forms at your local bankruptcy court in Maryland. Hire the services of the best bankruptcy law firm, Largo, MD, USA, for this purpose.
When filing for bankruptcy, it's crucial to be fully transparent. This ensures the integrity of the process and reassures your creditors and the judge of your commitment to resolving your financial situation. Any perceived lack of disclosure could potentially impact the success of your petition, as determined by your creditors or the judge.
The Law Office of Erica R. S. Hunt has the best bankruptcy lawyers in Maryland, USA. Maryland residents and businesses facing tough financial situations can rely on this experienced and reputed bankruptcy law firm, Largo MD USA, to assist them in making the best decisions while filing for Chapter 7 or Chapter 13 bankruptcy.
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