Deciding to file for bankruptcy is a difficult decision to begin with. What makes it even harder is all the rules surrounding bankruptcy that only bankruptcy attorneys in Baltimore can answer for you. You need to understand the different types of bankruptcy and some of the terms related to bankruptcy that can help determine whether or not you qualify to file for bankruptcy.
Types Of Bankruptcy
You have likely heard of both Chapter 7 Bankruptcy and Chapter 13 Bankruptcy, as these are the two forms of personal bankruptcy that are filed most often. Chapter 7 Bankruptcy requires that you give up property and assets that are not within certain limits called exemptions. These assets will be sold to repay creditors. Chapter 13 Bankruptcy is when you continue to repay the debt you owe to your creditors within three to five years. However, this does need to be approved in court, and you must follow the order set forth by the bankruptcy judge. Bankruptcy attorneys in Baltimore will help you assess your financial situation and determine if you qualify for filing bankruptcy and which option is best for you.
Understanding Judgment Proof
Even if you own money to a particular creditor, there is a chance that they are not allowed to collect what’s due to them from you. However, as bankruptcy attorneys in Baltimore will tell you, this only applies under certain circumstances. The main reason you would not have to repay is due to your income. If you fall below a certain income and your assets are protected by the exemption laws, then you would not need to pay.
Avoiding Bankruptcy
There are some cases wherein your debt is detrimental to you, but may not be considered enough to file bankruptcy. Essentially, if your income largely outweighs your debts, you would not qualify for bankruptcy. bankruptcy attorneys in Baltimore can help determine whether or not your income is too high in comparison to your debts to qualify your for bankruptcy. They can also help you find different ways to manage your debt if you are not eligible to file for bankruptcy.
Miscellaneous Eligibility Requirements
There are a few other aspects that can determine whether or not you qualify for bankruptcy. However, as bankruptcy is a wide topic and varies depending on each individual’s case, it is recommended that you contact a bankruptcy attorney. He/she will be able to evaluate your financial situation and help you make the decision that is best for you, and guide you along the way through the bankruptcy process.
As you can see, filing for bankruptcy requires being knowledgeable about many different aspects concerning bankruptcy filing and bankruptcy laws. It is definitely one situation where you want to make sure your I’s are dotted and your T’s are crossed, so that you can take care of your debts, but still remain within the standards of the law.
In order to help you determine whether or not you qualify for bankruptcy, the group of bankruptcy attorneys in Baltimore located at the Law Offices of Frank E. Turney, P.A. are waiting to provide you with a free consultation. Contact their office today at .
