Sometimes, events happen that make it impossible for people to fulfill their financial obligations. Whether it be from the loss of a job, a serious injury, illness, or from other reasons, many people find themselves in serious financial trouble at some point in their lives. While these situations will often resolve themselves or improve over time, some people are simply in too much debt to recover without help. In these cases, speaking with a bankruptcy lawyer in Bowie, MD may be appropriate. These lawyers help their clients determine if filing for bankruptcy is the best course of action given their individual situation and which type of bankruptcy to file.
A number of factors play into the decision to file for bankruptcy. First, the situation must not show much potential for improvement, as filing for bankruptcy over a temporary setback would be unwise. Bankruptcies affect credit scores and loan availability for a minimum of seven years, and it is a lengthy legal process that should not be entered into lightly. Additionally, some people may be required to sell or give up their possessions as a requirement of their bankruptcy. For help determining which type of bankruptcy should be filed, help from a bankruptcy lawyer in Bowie, MD is crucial.
Most people in the U.S. who file for bankruptcy with us either file for chapter 7 or chapter 13. There are several distinct differences between these types. Chapter 7 is for those in the worst financial situations who have little disposable income each month. Chapter 7 usually involves selling people’s assets in an attempt to recoup part of the overall debt. Chapter 13 bankruptcy, however, allows people to keep their belongings and continue living as they otherwise were. Those who file for chapter 13 have enough money that they are able to make payments on their debt, but they need a less-demanding repayment plan.
Without a lawyer’s help, it is challenging for individuals to handle the bankruptcy process alone, and they may not be successful. Bankruptcy attorneys are available to provide consultations to potential new clients and offer guidance to those in financial distress. As bankruptcy filings have serious consequences on a person’s life and credit, expert guidance from a bankruptcy lawyer in Bowie, MD is best.