Life can be unpredictable. Even if you do a good job of managing your finances, unexpected events can wind up throwing you for a loop, making it impossible to keep up with your bills. Eventually, you may get so far behind that your only choice is to file for bankruptcy.
Filing for bankruptcy in Maryland is a fairly straightforward process. It does, however, take quite a bit of time to reach the point where your debts are actually discharged. The good news is, the minute that you file for bankruptcy, your creditors can no longer hassle you. This can bring instant relief if you have been dealing with collection agencies or if you have been threatened with lawsuits or foreclosure.
Your first step should be to gather together all of your financial information. This includes detailed information on your income and expenses as well as any assets that you own. Typical assets include your house and vehicles. If you own any other large items such as boats, expensive jewelry, or collectible artwork, you should also include them.
Once you have all of your information put together, you should meet with a bankruptcy lawyer. After looking at your current financial situation, they can recommend a course of action that will help you get out from underneath your debt while still allowing you to hold onto as many of your assets as possible.
There are two basic types of bankruptcy that most people choose. The first is chapter 7 bankruptcy. With this type of bankruptcy, all of your qualifying debts are discharged, meaning that you no longer have to pay them.
The second type is chapter 13 bankruptcy. With this option, the bankruptcy court puts together a payment plan that you must stick to that will allow you to pay off your creditors over time. Your lawyer will be able to tell you which type of bankruptcy is the best choice for your situation.
Once you actually file for bankruptcy, there are still a lot of details that need to be taken care of. For instance, you have to go to a meeting with all of your creditors. Your lawyer will be able to keep you informed throughout the process so that you meet all of your deadlines and attend any necessary court dates.
The best part about filing for bankruptcy in Maryland is that it gives you a fresh start with your finances. It can be a good option for getting out from under overwhelming debt.