No matter how carefully a person plans, debt can eventually build up. Whether due to poor financial decisions, the loss of a job or unexpected illness, dealing with mounting debt can be difficult in many ways. Unfortunately, creditors have the right to pursue you through your wages and can even take you to court. This is why it is crucial you do not ignore your debts. To find out about your legal rights regarding your debt, it can be helpful to hire the bankruptcy attorneys in Baltimore.
When a person is dealing with more debt than they can afford, they have a couple of different options for filing for bankruptcy. Bankruptcy can help to settle debt and assist a person in securing a brighter financial future. The type you will need will depend on the amount of debt you owe, your income and your assets. An attorney can go over both options and help you choose the best one for your financial needs.
The bankruptcy attorneys in Baltimore can assist you in filing for chapter 7 bankruptcy. This type is for those with mostly unsecured consumer debt. To be approved for this type, a person must be able to pass a Mean’s test. This test measures your income against the median income. As long as your income does not exceed this amount, you are eligible to file. Chapter 7 can settle your debt in as few as six months. Some people may be required to submit non-essential property for liquidation to pay off their debts.
Chapter 13 is also an option and is mostly used by people who have secured debts. Chapter 13 can help to prevent homeowners from losing their home through foreclosure. It can also protect your car from being repossessed. This type of bankruptcy requires you pay a payment through the court so your debts you can be paid down in two to five years. You are not required to submit any property for liquidation.
They will be happy to assist you through every step of the process so you can get the best possible outcome.
