One of the last things in the world that people want to do is to find themselves in a situation of needing to file bankruptcy. Fortunately, the bankruptcy situation is not viewed as badly as it used to be, and there is plenty of help available to help debtors find a reasonable solution. A bankruptcy attorney in New Market, Maryland helps clients to understand their bankruptcy options and works with them to resolve the matters. Here are some things that need to be understood about the two main types of bankruptcies available.
Getting an Understanding of Chapter 7 Bankruptcy
The most popular bankruptcy option for people to file is chapter 7, which is a complete erasure of all unsecured debts, giving the debtor a chance to start fresh. In this type of bankruptcy, the debtor usually gives up the rights to the home and car but is allowed to keep other property that is exempt. Also, this option cannot be taken by everybody, as there are income requirements that must be met. If the debtor’s financial situation does not meet chapter 7 requirements, the next option is chapter 13.
Getting an Understanding of Chapter 13 Bankruptcy
In the chapter 13 bankruptcy, the debtor has to pay all or most of the debts (as decided by the court) but has a three-to-five year period to pay the debts. This option allows the debtors to keep the property from going into foreclosure and to keep their cars as long as the amount required to catch up is paid. In all of the case, the debtors can expect to be no longer be hassled by the creditors.
An Attorney for Bankruptcy in New Market, Maryland
If a person is going to file bankruptcy, they should select an attorney who is known to be successful with bankruptcy cases. Russell & Heffner is a law firm that helps clients in New Market, Maryland with debt relief issues such as bankruptcy. Anyone interested in consulting with a bankruptcy attorney in New Market, Maryland can contact this law firm.