Kindlund Legal LLC.

Call Now For A Complimentary Case Evaluation:

(240) 539-9393

Former Chapter 7 Trustee

Kindlund Legal LLC.

When Should I Hire A Bankruptcy Attorney?

Have you considered filing bankruptcy for yourself or even for a business? People file bankruptcy for wide variety of reasons. Below are a few of the most common reasons. Even if your circumstances do not fit neatly into one of the following categories, a Bankruptcy Law Attorney can help you decide if you qualify for bankruptcy.

  1. Medical debts- Due to the high cost of medical treatments, it can seem like one is drowning in debt should they need a costly procedure or expensive medication. Many people find themselves with medical debt that they are unable to pay off.
  2. Loss of employment- If one loses their job and it is unable a new one that pays comparably, then they might need to find a way to get out of debt.
  3. Credit card debts- Often people misuse or overuse credit cards and find that they cannot pay off all the debt.
  4. Separation or divorce from a spouse- Moving from a multiple income home to a single income home can definitely change quality of life, leaving a person unable to pay down their debts.
  5. Unexpected debts- Unfortunate life events can devastate a person’s life, leaving them with insurmountable debt. Loss of property due to weather events, theft, etc. might leave one under circumstances where they cannot pay down their debt.

Do you have questions about whether you should file bankruptcy? An experienced Chapter 7 Bankruptcy Attorney or Small Business Bankruptcy Attorney can answer all your questions and help you make the right decision for your situation. The attorneys at Kindlund Legal LLC are here to answer all your questions and guide you through the appropriate bankruptcy process. If you are located in or near Bethesda, Montgomery County, MD, call (240) 539-9393 for a complimentary consultation.

How Do I Know Which Bankruptcy Is Right For Me And My Circumstances?

Each individual has their own personal journey that leads to filing bankruptcy, so there is no one size fits all method of bankruptcy. If you are an individual who does not fall into the business category and you are considering bankruptcy, most likely you will need to file either Chapter 7 or Chapter 13 bankruptcy, since the other types are filed largely for businesses.

The main difference between Chapter 7 and Chapter 13 is the amount of assets and income level of the person interested in filing. If the means test for Chapter 7 shows that the person makes too much money to file, then they will need to explore a Chapter 13 bankruptcy. An experienced Chapter 7 Bankruptcy Attorney will be able to help you find out if you qualify for Chapter 7 or not.

Chapter 7 bankruptcy is also known as liquidation bankruptcy. This involves the Liquidation Of The Debtor’s Assets, meaning that the person filing bankruptcy sells assets in order to pay down debt. After that, all debt that is not exempted can be discharged.

Chapter 13 bankruptcy for individuals is the reorganization of debt. The person filing bankruptcy will agree to a court-approved repayment plans, in order to settle debts with creditors. The repayment plans usually last between three and five years.

Chapter 11 bankruptcy is usually filed by businesses that would like to remain open for business while undergoing the bankruptcy process. It is also the most complex of the bankruptcies. Under chapter 11 bankruptcy, the business debts are restructured so that the creditors benefit and the business can remain in operation.

If you are considering bankruptcy and have questions about which type might be right for you and your circumstances, you should speak with an experienced Bankruptcy Attorney. If you are located in or near Bethesda, Montgomery County, MD, one of our attorneys at Kindlund Legal LLC will guide you through the process that is best for your situation. Call (240) 539-9393 for a complimentary consultation.

What Is The Chapter 7 Bankruptcy Means Test?

The means test is designed to determine if someone has any disposable income that could be used to pay off debt. The test is usually for those who have consumer debts, such as credit card and medical debt.

The first part of the test looks to see if your household income is below your state’s median income. If your income is under that median income, you automatically pass the means test.

If you are considering bankruptcy and have questions about which type might be right for you and your circumstances, you should speak with an experienced Bankruptcy Attorney. If you are located in or near Bethesda, Montgomery County, MD, one of our attorneys at Kindlund Legal LLC will guide you through the process that is best for your situation. Call (240) 539-9393 for a complimentary consultation.

Jillian Kindlund

Call Now For A Complimentary Case Evaluation
(240) 539-9393
Former Chapter 7 Trustee