Paying down your debts may appear to be an impossible task, but you can turn to a hard-working Upper Marlboro, MD, bankruptcy attorney for some help. Joy P. Robinson, PC is a locally based legal practice that offers support for clients as they try to petition the court for relief, negotiate with debt holders, and cope with the terms of any ruling that might come out of the case. If you’re feeling overwhelmed and unsure of what to do next, you can benefit from consulting with a bankruptcy attorney.
SHOULD YOU CONSIDER BANKRUPTCY?
One of the most immediate benefits of filing for bankruptcy is that it instantly stops creditors from coming after you in their efforts to collect debts. If you file for bankruptcy prior to the sale of a home in foreclosure, too, the automatic stay can assist you.
CHAPTER 7 BANKRUPTCY
Chapter 7 is the most popular form of bankruptcy because it allows most people to wipe out all (or most) of their debts within a few months. In return, you must give up your nonexempt property. The bankruptcy trustee (an attorney appointed to administer your case) sells this property and distributes the proceeds among your creditors based on priorities set by law. At the end of the process, the court will “discharge” (wipe out) most types of debts. However, bankruptcy doesn’t wipe out all types of debts. Chapter 7 won’t get rid of child support debt, certain income taxes, most student loans, debts incurred through fraud, and a few other types of debt.
You can file for Chapter 7 bankruptcy once every eight years, and there are other factors that may influence when you are able to file for bankruptcy, too. One of the most important things you can do for yourself if you’re thinking about filing is to set up a meeting with a Maryland bankruptcy lawyer. Having your questions answered and getting clarification may be essential during this challenging time.
CHAPTER 13 BANKRUPTCY
In Chapter 13 bankruptcy, you keep all of your property. In return, you repay creditors (in full or in part, depending on a number of factors) through a court-approved repayment plan that lasts between three and five years. Instead of dealing with individual creditors, you make a single monthly payment to the bankruptcy trustee who then distributes payments to creditors.
You must pay some debts in full over the plan period (for example, back child support, back mortgage payments, and your car loan) and some you pay in part depending on what money is left over after the trustee pays your “priority” debts (for example, credit card debt and medical bills). You must continue to make your mortgage payments throughout your bankruptcy. Chapter 13 allows you keep your property so long as you can keep up with the payment plan. If you have an income and you believe you’ll be able to stick with it, consult with a Maryland bankruptcy attorney over whether filing for Chapter 13 is the right choice for you.
WHAT ABOUT DEBT CONSOLIDATION?
There are many programs out there promising to help you get back on track with your finances by consolidating your debts or getting credit counseling. While these might be good options in particular situations, they are not helpful for people who are already struggling to make minimum payments. Many of the efforts that others use to attempt to drive you away from filing bankruptcy are not as effective as bankruptcy. If you’re in dire straits with your finances, working with debt consolidation is likely to flounder after a short period of time, leaving you even further frustrated and overwhelmed.
JOY P. ROBINSON, PC HELPS YOU FIND RELIEF
The people we represent prefer to work with us because:
- Our practice is based locally.
- We work hard to see that your rights are protected.
- Our firm provides personalized advice for each case.
At Joy P. Robinson, PC, we’re available on a flexible basis to handle appointments, so you can quickly set up a consultation time that’s convenient for you. We also offer payment options in order to make it easier for you to simply focus on their bankruptcy filing. Having a Upper Marlboro, MD, bankruptcy attorney take a look at your situation may be a solid first step to getting relief from debt, so contact us now to start the process.