If your spending has gotten out of control, a divorce occurred, or you had an illness or injury that affected the ability to be gainfully employed, chances are you’re under incredible stress and need to consider bankruptcy services in Bowie, MD. Being unable to pay a mortgage, car payment, or obtain credit can be easier when you speak with a bankruptcy attorney who can explain all of the legal options available to gain the financial freedom you need to go on with your life.
The Type of Debt That Can Be Eliminated
The type of bankruptcy an individual is eligible to file for will depend on whether there would be a complete liquidation of assets or if they’d be able to retain them with a reduced payment amount. Child or spousal support, certain taxes and student loans will not be eliminated through bankruptcy. Unsecured loans or mortgages that are in foreclosure can be stopped when bankruptcy is filed.
Chapter 7 Bankruptcy
This type of bankruptcy is for individuals who do not have a regular source of income and have a lot of unsecured debt like credit cards. For these types of bankruptcy services in Bowie, MD, a trustee will be appointed by the court to liquidate assets that are not exempt from the bankruptcy process. Once the sale is complete, the bankruptcy will be discharged and an individual will be free from the debt they previously had.
Chapter 13 Bankruptcy
Bankruptcy services in Bowie, MD offer this type of financial freedom for individuals who have a regular source of income but cannot afford to continue paying creditors on a regular basis. A payment plan is established and will last for three to five years. After completing all of the payments, the balance of the debt will be forgiven and the individual will no longer have to pay the previous creditors.
If you’ve found yourself in a situation that has left you with little or no money because of the debt you’ve accumulated, it’s time to speak to a bankruptcy attorney and learn about the legal options available to you.