Bankruptcy in Maryland
While filing a bankruptcy in Maryland, it will help with almost any type of creditor problems and erase most forms of debt. There are exceptions and these include the following: Car loans, Child Support, Divorce, and Alimony. First off, it is important to go into greater detail in regard to car loans. If an individual has a car loan and is behind on their payments, he or she will not keep the car unless they keep with the creditor’s payment plan. Bankruptcy is something that helps a lot of people out of debt and gives them the ability to catch up on bills.
Different types of bankruptcy
When an individual has decided to file for bankruptcy, he or she will need to decide what type of bankruptcy they will be filing under. For those individuals filing for bankruptcy in Maryland, they should know that there are two different ways to file for bankruptcy. First there is Chapter 7 bankruptcy, also known as the liquidation bankruptcy. Chapter 7 bankruptcy is based on the individual’s income from the past seven months. If they make the state’s median then they are eligible. If not, then they will have to file under Chapter 13 bankruptcy. This means that the individual can keep their house and car loan while paying a low payment to catch up. The Chapter 13 bankruptcy is something that is for someone wanting to keep his or her house or car.
When attending a creditor meeting, the creditors will want the individual to tell them what their finical problems are. The creditor creates this meeting to help people find a solution to fixing the debt problem. The individual will be under oath and must answer all questions regarding their debt and income. Keep in mind that many times the creditor will try to talk an individual out of filing for bankruptcy.
Process of a bankruptcy
Chapter 7 Bankruptcy in Maryland takes up to 30 to 45 days to complete. Chapter 13 bankruptcy will take about three to five years to complete. During the three to five years, the debtor will have to pay back the debt owed. The chapter 13 is a good way to help make payments to past due bills and keep your house or car. The bankruptcy stays on their credit report for 10 years. The amount of people that file bankruptcy in a year is extremely high in the state of Maryland as well as in other states throughout the country. Consult with a bankruptcy attorney if you would like to get more information.