In Maryland, bankruptcy claims help consumers manage their debts when facing foreclosure or repossession to provide immediate protection against financial losses due to an automatic stay. The consumers choose between two different chapters when filing for bankruptcy. A bankruptcy lawyer in New Market explains each chapter and helps consumers make the correct choice.
Is Bankruptcy the Right Choice?
Consumers with limited debts could settle them through settlement offers. Their attorney assesses their debts and determines where settlements are possible. The attorney negotiates for settlement offers for debts such as smaller loans or credit card accounts. Loan modifications are also a possibility for managing higher-valued debts.
Which Bankruptcy Chapter Is the Appropriate Choice?
Consumers settle debts through bankruptcy via two different chapters. First, chapter 13 offers a new payment plan that requires monthly payments. The second choice is liquidation of the consumer’s assets. The volume of debt and the total value of the consumer’s estate determine the most appropriate choice for the consumer. If they own a high-valued estate, liquidation could prove beneficial in settling their debts.
Who Receives the Highest Exemptions?
Consumers who are married receive the highest exemptions. Married couples double their exemption values when filing for bankruptcy. Claimants who have lower equity values may also receive higher exemptions for their claim, too. The attorney reviews the exemptions available to claimants in Maryland and explains the opportunities thoroughly.
How Long Does Bankruptcy Last?
The chapter 13 claims last up to a maximum of five years, and liquidation is over within six months. The attorney defines how long a chapter 13 case lasts according to the new requirements. Select claims are over within three years. The chapter 7 claims could be finalized within three months if the claimant has limited assets.
In Maryland, bankruptcy claims help consumers settle their debts according to the benefits of each chapter. The opportunities help consumers pay off their debts quickly and without legal repercussions. The court also discharges certain debts for the consumers and offers an automatic stay to stop legal actions against the consumer. Consumers who need more details about bankruptcy chapters can contact a bankruptcy lawyer in New Market to get legal help right now.
