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Maryland Bankruptcy Lawyer

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In the state of Maryland, nearly 40,000 bankruptcy filings occur each year as businesses and individuals regularly find themselves in impossible financial situations that they just cannot get out of without some sort of legal help. In the U.S. overall, bankruptcy is a common occurrence and for some, bankruptcy protection may be the answer that individuals or businesses are looking for to get debt relief. Is it the best answer for you?

Bankruptcy can be defined as the legal inability to pay debts or the state of having been legally declared bankrupt. Obtaining bankruptcy protection can be a grueling process. Because bankruptcy laws can be complicated, due to the many different types of bankruptcy, it is highly recommended that you hire a bankruptcy lawyer or attorney to help you with your case especially if you own a business and have valuable assets.

A Maryland bankruptcy lawyer or attorney will be able to navigate through the state's maze of bankruptcy statutes, codes, and exemption laws, and they will discuss the different types of bankruptcy with you. Common types of bankruptcy include Chapter 7, Chapter 11, and Chapter 13.

Chapter 7, which is known as liquidation bankruptcy, is a good choice for those who have no real assets to protect. Under Chapter 7, people are only be required to liquidate assets that are not exempt by law, such as vehicles that are under $2,775. Items that are not exempt will be sold in order to pay off a portion of the debt, and the rest will be permanently discharged.

Chapter 13 is commonly referred to as a wage earner's plan. This allows you to pay off debt over 36-60 months, according to a court-approved repayment plan. This allows you to catch up on your mortgage, and does not require you to sell your home to pay your creditors. If housing foreclosure and overwhelming credit card debt is a daily stress, Chapter 13 could be your solution. This allows you for a repayment plan over 3-5 years all while letting you catch up on your mortgage and keep your home. You can stop harassing phone calls, collection letters and wage garnishments. This is a great option for people who earn a steady income that has been made unsteady due to unforeseen circumstances and who just need a chance to catch up.

There are also less common types of bankruptcy, which may apply in your situation. Your attorney will be able to help you decide which type is most appropriate in your situation. He or she will also explain the risks of all types of bankruptcy, as well as offer other possible alternatives to bankruptcy, since a good bankruptcy lawyer or attorney will also have extensive knowledge about debt management.

Once a Maryland bankruptcy lawyer or attorney has explained your options and decided on the best one for you, they will oversee your case, beginning to end. You may go before a Maryland judge and work out a payment plan. Moreover, you may have a partial or full discharge of most debt. In some cases, all debts are discharged. Yet there is a downside: if you file for bankruptcy in the state of Maryland, your debts will be discharged, but your credit will negatively affected for up to 10 years.

For great resources and information about Maryland bankruptcy lawyers or attorneys and exploring your options for debt relief, visit the American Bar Association (ABA) website. The ABA features a lawyer locator, which allows the user to search bankruptcy lawyer profiles in Maryland. Access to the site and profiles is free.