When an individual is living from paycheck to paycheck and is unable to pay their bills, they should consider speaking with a bankruptcy lawyer in New Market. There are several types of bankruptcy an individual can choose from, but the two popular ones are Chapter 13 and Chapter 7.
Chapter 13 bankruptcy is ideal for individuals who have assets they want to keep. Chapter 7 is better for individuals who have a lot of unsecured debt like credit cards. An attorney will help an individual determine what type of bankruptcy they are eligible for after they review their income, debts, and assets.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy will discharge the majority of the debts and retain most or all of the assets. A bankruptcy attorney will help an individual determine if all of the debts can be discharged. The bankruptcy law can be very confusing and it’s important to receive answers to all of the questions.
For an individual to qualify for Chapter 7 bankruptcy, an individual is required to take a means test. The family income must be less than the median income. An individual must take credit counseling classes are part of their bankruptcy filing.
Discharges All Debts
Bankruptcy dismisses the majority of an individual’s debts, but there are several debts that cannot be erased. Child support, alimony, taxes, and student loans cannot be discharged during bankruptcy.
Individuals are given exemptions as part of their bankruptcy proceeding. Exemptions can include a homestead of up to $23,675 of equity in an owner-occupied real estate. Disability or health care benefits and motor vehicles. Personal injury, wrongful death, lost future earnings, and awards are some other common Maryland bankruptcy exemptions.
Public benefits, earnings, and support will not be calculated as part of an individual’s income. There are wildcard exemptions including cash or property up to $6,000 in value. Whatever the case may be, an individual should contact a Bankruptcy Lawyer in New Market.
You can easily stop the harassing telephone calls and save your home and other assets by speaking with an experienced bankruptcy attorney today. For more information, please click here.