If you are struggling with overwhelming debt, there are a few solutions. While many people are hesitant to file for bankruptcy, it can give you relief when you are struggling with a mountain of unpaid bills.
However, there are complex bankruptcy laws and requirements. If you plan to take the path to financial recovery, then you might want to consider using a Baltimore bankruptcy lawyer to assist with this process.
At Belsky & Horowitz, LLC, we know that making the choice to pursue bankruptcy to discharge debts can be stressful. If you would like to learn which options may benefit your situation, make sure to contact our office. With help from our dedicated bankruptcy attorney, we can provide invaluable support at every step.
What To Know About This Debt Relief Option
Sometimes, no matter how hard you try to manage your outstanding bills, debt can quickly overwhelm you. Bankruptcy helps individuals and businesses manage or eliminate those debts.
Once you file for this form of debt relief, you can:
- Receive legal protection from creditors
- Stop foreclosure or repossession
- Start rebuilding your financial future
However, if you make these decisions, you will need to learn about the federal bankruptcy laws and specific Maryland regulations to determine your exemptions and qualifications.
Bankruptcy can protect your financial health and help you regain control over unmanageable debts. Think of this as your first step toward a new financial beginning. If you want to learn more about how it can help your situation, contact our Baltimore bankruptcy lawyer.
Common Types of Bankruptcy Our Baltimore Attorneys Handle
Bankruptcy filings fall under specific chapters. Chapter 7 and Chapter 13 are the most common for individuals, while Chapter 11 might be an option for businesses or individuals with high-value assets. Here’s a closer look at these chapters and what they mean for you:
Chapter 7 Bankruptcy
With this liquidation bankruptcy, you can discharge most unsecured debts. This can include credit card balances, medical bills, and personal loans. However, you will need to qualify by passing a means test. With that, your income needs to be equal to Maryland’s median for a household of similar size.
Also, Chapter 7 bankruptcy may require you to sell certain non-exempt assets to pay creditors. But keep in mind that your car or home might be protected. For those with minimal income and unsecured debt, sometimes, this is the better option. It is also a faster option to get out of financial trouble. Most of the time, this process can wrap up within three to six months.
Chapter 13 Bankruptcy
This reorganization bankruptcy is another option. This is designed for individuals with a regular income. However, it allows them to seek debt relief and keep their property. With Chapter 13 bankruptcy, a repayment plan is created to consolidate your debts into manageable payments. Often, you can have them paid off within three to five years. This option protects valuable assets while providing relief from creditor pressure.
This option can help those with secured debts like car loans or mortgages. During this time, you can catch up on payments. Along with that, it can help to prevent repossession or foreclosure. For homeowners and individuals with valuable assets, Chapter 13 is an alternative to liquidation since it offers a structured way to pay down debts over time.
Chapter 11 Bankruptcy
Another option for those with high debt or complicated financial situations is to turn to Chapter 11 to restructure their debts. With this option, businesses can remain operational while trying to reorganize their bills. For individual filers, Chapter 11 may be an option when debts exceed Chapter 13’s eligibility limits.
Choosing the right bankruptcy option can be confusing for many people. If you would like to learn the right one for you, reach out to the legal team at Belsky & Horowitz, LLC.
Other Debt-Related Issues That Our Legal Team Handles
While bankruptcies are a big part of what we do at Belsky & Horowitz, LLC, we also handle other issues that often accompany occur alongside this form of debt relief, including:
Maryland’s Legal Requirements for Pursing This Debt Relief Option
Like any legal process, there are set laws and regulations that you will need to adhere to. Some of these requirements for bankruptcy in Maryland include:
Means Testing
As mentioned above, the means test will determine whether you are eligible for Chapter 7. This test will compare your income to Maryland’s median income. If you exceed that amount, you may need to look at Chapter 13. In some cases, you could qualify for expenses for dependents, medical costs, or other necessary costs of living that could lower your income levels.
State-Wide Exemptions
Maryland has exemptions that dictate what property you can protect. These can include:
- Primary residences
- Personal property
- Retirement accounts
For example, Maryland’s “homestead exemption” helps protect a certain amount of equity in your home. Along with that, there are exemptions for personal property, such as furniture, clothing, and vehicles. All of this can prevent the liquidation of some assets.
Credit Counseling and Debtor Education Courses
All bankruptcy filers must complete two educational courses. You will need to attend a credit counseling session within 180 days before filing and a debtor education course after making the initial filing. Bankruptcy is only one step of the process. These courses help filers better understand budgeting, debt management, and financial planning. With that, filers can remain debt-free after bankruptcy and beyond.
Automatic Protection From Creditors
Once you file, you will have an automatic stay. What does that mean? Filing bankruptcy prevents creditors from taking any collection actions, including:
- Phone calls
- Wage garnishments
- Legal action
- Repossessions
- Foreclosure
During this time, you can get some breathing room to address your debts and stabilize your finances without pressure from the creditors.
The Importance of a Baltimore Bankruptcy Lawyer During This Time
You might want to handle this process on your own, but it can quickly become overwhelming without the right legal help. Filing for bankruptcy on your own can be risky. Even small errors can lead to delays, loss of exemptions, or case dismissal. An experienced Baltimore bankruptcy attorney can make sure every aspect of your case is handled in the right manner, including the following:
Selecting the Right Bankruptcy Chapter
Choosing the right chapter to file is important to achieving the best financial outcome for you. A skilled lawyer will look at your financial circumstances, including the types and amounts of debt, income stability, and assets, to determine the best option. For example, Chapter 7 can offer quick relief, but Chapter 13 could provide better asset protection for your situation.
Completing and Filing Documentation
You need accurate records for these proceedings. That means thorough documentation of all assets, debts, income, and expenses. A bankruptcy lawyer in Baltimore will make sure that every detail is provided and filed on time. With their assistance, you can prevent errors that can cause unnecessary delays or jeopardize exemptions.
Bankruptcy Court and Trustee Meetings Representation
In any bankruptcy case, you will need to attend hearings and mandatory meetings with trustees. You will want to have a lawyer to represent you and make sure your interests are defended. Plus, they can prepare you for questions from trustees or creditors. Also, your attorney will be there to always advocate on your behalf for fair treatment.
Maximizing Asset Protection Using Maryland’s Exemptions
Since there are a few exemptions in Maryland laws, you will want to know all the ones that apply to your case. These knowledgeable lawyers can help you navigate Maryland’s exemption limits.
Developing a Financial Recovery Plan
Bankruptcy is not the end but a new beginning. They can provide resources and advice on reestablishing credit, managing finances, and avoiding debt traps post-bankruptcy. This can help you use bankruptcy as a step toward your long-term financial stability.
Moving Forward with the Help of Belsky & Horowitz, LLC
While filing for bankruptcy can offer a path to financial recovery, you want to make sure to have an experienced Baltimore bankruptcy lawyer on your side. From selecting the right chapter to defending your interests in court, the legal team at Belsky & Horowitz, LLC can make all the difference.
If you’re considering bankruptcy as a solution, learn more about taking the first step toward financial relief. Reach out today to explore your options by scheduling a consultation with one of our attorneys.
