Many people face financial struggles at one point or another. For some, these struggles can be difficult to overcome on their own. Unexpected bills or emergencies can lead some people to get behind on their financial obligations, and before long, these issues snowball into a mountain of debt. Fortunately, there is help available. A bankruptcy attorney in Frederick can provide advice and information on how to take control of anyone’s finances.
What Is Bankruptcy?
Bankruptcy is a legal process that allows people to make arrangements with the courts and their creditors to take control of their finances. Depending on a person’s financial situation, a bankruptcy for an individual is either a chapter 13 or a chapter 7 filing. This process can seem long and confusing for many people. However, a bankruptcy attorney in Frederick can assist in understanding the process and determining the right type of bankruptcy needed to provide the most benefit.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a legal process that allows people to have their debt reorganized. During this process, the person filing will provide a repayment plan for all debts owed over the next three to five years, depending on debt and income limits. All debts, property, and income must be submitted to the courts for review during this process. This process will stop all creditors from calling or harassing the filer. An attorney can be beneficial in helping clients determine the repayment plan and navigate the legal process.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is a process set up for those with little or no income. Unlike chapter 13, all property outside of the exceptions, such as home and primary vehicle, will be liquidated to pay creditors. At the end of the process, any remaining debt will be discharged. Those choosing this option must fall under certain guidelines of income to qualify. An attorney can assist in this determination.
Also, anyone filing bankruptcy must also complete a credit counseling course to ensure they are better able to handle their finances after the bankruptcy. Contact us for more information about this process or to get help filing bankruptcy.
