A Chapter 7 bankruptcy offers an individual a legal way to eliminate their debt. Bankruptcy is filed in federal court by a Chapter 7 Lawyer in Bel Air, MD and completed within three to four months. The bankruptcy court will appoint a trustee to collect all of an individual’s assets and sell assets that are not protected under the Maryland Exemptions.
Any proceeds that are collected from the sale of assets will be paid to the creditors. The trustee will receive a commission for overseeing the bankruptcy. Before bankruptcy can be filed, an individual must complete a credit counseling class 180 days before bankruptcy can be filed.
There are several debts that will not be discharged in a bankruptcy proceeding. Child support, alimony, fraudulent debts, certain taxes, and student loans are a few of the items that will not be discharged.
When an individual files Chapter 7 bankruptcy, they might be able to keep certain secured debts like a home or a car if they reaffirm those debts. An individual has to sign a Reaffirmation Agreement. Once an agreement is signed, the individual cannot file for bankruptcy on that debt for eight years.
The only way to reaffirm a debt is to bring the debt current if the payments are currently behind. An individual will also have the opportunity to reaffirm the debts they want to keep and put other assets in the bankruptcy. This gives an individual the ability to retain the items they want and a Chapter 7 Lawyer in Bel Air, MD will help the individual through the process.
Inability To File For Chapter 7
If an individual does not qualify to file for Chapter 7 bankruptcy, an individual might be eligible to file for Chapter 13 bankruptcy. Chapter 13 bankruptcy allows an individual to restructure their debt, retain their assets, and eliminate their financial stress.
If your bills are overwhelming you, christmanandfascetta.com has many of the answers that you are facing. Bankruptcy is legal and helps individuals who have found themselves in a stressful financial situation. Please feel free to Visit online for more information about your financial freedom.