A debt-free lifestyle in Maryland is achievable by exploring options such as bankruptcy. While there are several chapters available, the debtor should establish which choice meets their financial needs more efficiently. Chapter 7 provides the option to settle debts through the liquidation process. If you wish to explore Georges County MD Chapter 7 Bankruptcy today, you should visit Law-margulies.com.
While income restrictions apply to filing a claim, the most significant detail for chapter 7 is the establishment of a market value for each property considered. A consumer with limited assets may not reap the full benefits of this bankruptcy chapter due to an inability to generate enough proceeds to pay off their debts. An attorney conducts a market analysis based on several factors to make these distinctions for the Georges County MD Chapter 7 Bankruptcy case.
A market analysis produces a value based on the price in which similar properties sold. The most common factors considered are the property type, location of the property, and its current condition. Assets such as stocks are limited to their current value, which could present a loss. In terms of automobiles, this analysis establishes the blue book value for a private seller based on the make, model, and condition of the vehicle. However, this value doesn’t guarantee that the owner can generate this value through a private sell; the generated proceeds are based on what buyers are willing to pay.
The Liquidation Process
After the bankruptcy claim has been approved, a trustee seizes the titles and deeds for all properties available for liquidation. This trustee places the items on the market based on the value assigned. As the properties are sold, the trustee distributes the funds to the claimant’s creditors to settle their debts. The exempted value is deducted from the proceeds and returned to the claimant.
A chapter 7 bankruptcy claim requires up to six months to complete. After all properties are sold, the case is discharged. Any debts that are eliminated either by payment of court discharge are no longer the responsibility of the claimant. However, creditors can take action against the claimant for any debts that were not included in the case.