Getting To Know Bankruptcy & Choosing the Best Option

by John Fostar Media Releation

Bankruptcy is a horrific word. It has menacing connotations for people. We hear of frightening stories of celebrities, businesses, and conglomerates that have gone bankrupt.

The list is longer then we think.

Perhaps we all are vulnerable, regardless of how secure we feel financially.

After all, we are living in an era of attractive loan offers for cars, dream houses and other gadgets.

Using credit cards is an accepted norm.

So are you at a risk for bankruptcy? How much do you have to be in debt to file for a bankruptcy chapter?

 You could be at risk if you are in a few of the following scenarios:

• Bill collectors are knocking at your door
• If you are making only the minimum payments on your credit cards
• You loathe sorting out your finances
• If you are considering debt consolidation
• You have no idea how much you owe.

A good idea is to make an assessment of where you stand financially.

Tally up your credit statements and compare them with your liquid assets. While doing so, do not forget to include stocks, your real estate, your car and any savings accounts you have.

If your liquid assets are less than what you owe, then filing for bankruptcy can be an answer.

The process is not simple though. You will need assistance of a lawyer specialized in chapter 7 bankruptcy in Maryland.

Of course you can voluntarily file for bankruptcy or request the creditors to ask the court to declare you as bankrupt.  A better approach is to consult a chapter 7 bankruptcy lawyer in Northern Virginia.

The lawyer will familiarize you with the basics of bankruptcy and help you understand that it is not something to go about in a casual manner.

One key concern people have is about the nondischargeable debts  in Chapter 7.

Yes, Chapter 7 erases your debt and allows you to get a fresh start.

Do all debts qualify for cancellation?

Many qualifying debts can be got rid of such as medical bills, some types of loans, and credit card balances.

But some are nondischargeable. These include:

• Alimony
• Student loans
• Child support
• Certain types of taxes
• Fraudulent debts

To get an exact idea, it makes sense to contact a lawyer specializing in chapter 7 bankruptcy in Northern Virginia.

There are several situations when Chapter 13 can be more appropriate than Chapter 7.

Chapter 13 is well-suited to you if you have fallen behind in your business payments but you want to retain your property.

A chapter 7 bankruptcy Maryland lawyer will explain to you that Chapter 13 will allow you to catch up with your unsettled payments over a period of time and restore original mortgage agreement.

A well-thought-out decision, therefore, is essential. If you do not do this, with Chapter 7 you lose your non-exempt property and if you are facing foreclosure of your home, the automatic stay is only temporary.

But of course, with Chapter 7, your have several advantages that may suit you better.

Resource Box   

Law Office of Rowena N. Nelson is among the top lawyer firms in Maryland. This law firm provides a wide range of legal services including in bankruptcy law, criminal law and family law.

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Created on Jul 16th 2019 01:14. Viewed 318 times.

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