If you’re dealing with constant debt collection calls, facing foreclosure and facing the repossession of your vehicles, the entire situation can feel hopeless. However, you do have options that can help you get out of debt and keep both your home and your vehicle. When facing these problems, working with one of the bankruptcy lawyers in Baltimore can help you get back on your feet and out of debt. For an individual, there are generally two chapters of bankruptcy that you will want to file under: Chapter 7 and Chapter 13.
Chapter 7
Chapter 7 is for those who have an income lower than the median income for the state they live in. In this chapter, the bankruptcy is completed by giving all of the non-essential assets to a trustee. The trustee will then sell the assets and use the money to pay off the debts. This process usually takes about 6 months, at the end of which you’ll be debt-free. This also allows you to keep your home and vehicle, as they are considered essential assets that you need to have.
Chapter 13
In Chapter 13, anyone over the median income level can apply. Instead of selling assets, the debts are reconsolidated into one large amount. This amount is then split into monthly payments. When you are done making the payments, all of your debts will have been paid off. Generally, this process can be completed in about 3 years, but it usually takes no longer than 5 years. You will be able to keep all of your assets when you file for Chapter 13, as your debts will be repaid with a monthly payment instead of having to be sold to cover your debts.
A bankruptcy lawyer can help you decide which one is better for your particular situation, and they can help you through the entire bankruptcy process. Beyond that, they can even field the debt collector calls for you so you don’t have to deal with them any further. If you’re facing bankruptcy, call one of the bankruptcy lawyers in Baltimore to find out how they can help you.
