Bankruptcy Advisory Center

Is Bankruptcy Right for You?
 

      Bankruptcy is not always the best route to resolve  an individual's  financial problems.  The first issue we need to address is whether  bankruptcy will help you.  While bankruptcy will help the vast majority  of the clients I interview, occasionally that is not the case.  I will  not recommend that you file bankruptcy if that would not truly benefit  you.

     One form of bankruptcy is called a Chapter 7 proceeding, also  referred to as a "liquidating bankruptcy". In a Chapter 7 proceeding,  the Debtor lists all of his or her assets, but then identifies which  assets the Debtor will claim as exempt (not available for liquidation by  the bankruptcy trustee appointed by the Bankruptcy Court to sell any  non-exempt assets).  Asset exemptions are limited by Maryland law, but  more often than not, my clients can exempt all of their  assets.

         Another  form  of  bankruptcy  Chapter  13,  often  referred  to  as  a  “consumer  or  wage  earner  reorganization”.  This  is  most  frequently  used  to  allow  a  Debtor  three  to  five  years  to  cure  mortgage  and  auto  loan  defaults  in  order  to  stop  a  foreclosure  or  repossession by  making  regular  monthly  payments  to  a  bankruptcy  trustee  who  deals  with  your  creditors.

     Not all debts are dischargeable (extinguished), but most are. Taxes  that are less than three years old are not dischargeable.  Student  loans are generally non-dischargeable, but can be discharged if  repayment will cause "undue hardship".  This standard is extremely hard  to meet.

     Please call my office to make an appointment today to review your  financial situation and start you on the road toward financial recovery.