Frederick residents certainly want to speak with their bankruptcy attorney concerning the right type of filing for their needs. However it is simple to learn about the potential types of bankruptcy that could help you find financial relief before your visit.
What is Bankruptcy?
Bankruptcy is the process of relieving debts when you cannot meet your obligation to lenders and creditors. It is a process handled through the U.S. Bankruptcy Court, allowing some to eliminate their debts and others to combine all of their debts into a monthly payment affordable for their budget.
Types of Bankruptcy
There are two different types of personal bankruptcy filings offered to an individual. Those choices are Chapter 7 and Chapter 13. Both are very different types of bankruptcies with very different requirements and results. It is very important to familiarize yourself with each option and its requirements before you get started.
Filing Chapter 7 allows all of your debts to be discharged once your liquid assets have been used to repay partial amounts of the debt. You must prove that you are unable to pay off your debts to file Chapter 7 as well as prove that your income is less than the median income for your household size.
Chapter 13 requires an individual be placed on a payment plan. The payment plan combines all of the debts a Frederick resident owes into one payment that is predetermined with the help of the bankruptcy attorney. Chapter 13 allows a time period of three to five-years to pay the debts that are owed. Individuals who have secured debt may opt for filing Chapter 13. Secured debt includes car loans and mortgages.
How to File Bankruptcy
While it is not mandatory to hire a bankruptcy attorney to handle the matter, it is highly recommended for all Frederick residents unfamiliar with the laws of filing to speak with a knowledgeable expert. Bankruptcy laws change often and can be very complicated to the untrained individual. It can be far more difficult to handle the matter on your own, something you should know before you begin the process and waste time or cause yourself a great deal of hardship.
Once you speak with an attorney and make your selection they’ll guide you through the process of filing bankruptcy and regaining control of your financial future. You will need to attend a credit counseling program, submit proof of income and of debts, pass tests and perform a series of other tasks, all of which a bankruptcy attorney in Frederick can make much easier for you.
Get in touch with the Frederick law firm of Goren, Wolff and Orenstein when you need a bankruptcy attorney to guide you through the complex process of filing for bankruptcy.