Bankruptcy Lawyer Darnestown Montgomery County

Have you considered filing bankruptcy? People file bankruptcy for a variety of different reasons. Here are some of the more common ones:

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.
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.

What are the different types of bankruptcies?

There are multiple types of bankruptcies. Some types are better suited to an individual, while others are more appropriate for businesses.

• Chapter 7: Liquidation- This is the most common bankruptcy for individuals. A court-appointed trustee performs Liquidation of Debtors’ Assets to pay off your debts. If there is debt still left, it is usually erased. In order to qualify for Chapter 7, you must pass the means test, that shows you do not earn enough money to pay off all your debt. A Chapter 7 bankruptcy will remain on your credit for 10 years.
• Chapter 13: Repayment Plan- As the name implies, Chapter 13 bankruptcy is a way to reorganize your debt so that it can be paid off over time. Unlike Chapter 7, you are allowed to keep your assets while slowly paying off your debt in court-approved monthly payments. There certain requirements you must meet to qualify for Chapter 13 bankruptcy.
• Chapter 11: Large Reorganization- Certain individuals and businesses (such as real estate investors) qualify for Chapter 11 bankruptcy. Businesses reorganize how the business operates, in order to keep functioning as a business and pay off debt at the same time. Both courts and creditors must agree to the plan.
• Chapter 12: Family Farmers- While it is similar to Chapter 13 bankruptcy, Chapter 12 is for family farmer and fishermen and has high debt limits.
• Chapter 15: Used in Foreign Cases- This bankruptcy is used by those with foreign creditors.
• Chapter 9: Municipalities- Chapter 9 is a repayment plan that allows towns, school districts, etc. to reorganize their debts in order to keep operating while paying down debt.

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 Law Attorney. If you are located in or near Darnestown, 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) 997-5775 for a complimentary case evaluation today.

Which kind of bankruptcy is right for me and my circumstances?

Each individual has different reasons for filing bankruptcy. There is no one size fits all when it comes to bankruptcy. If you are an individual who does not fall into the business category, most likely you will need to file either Chapter 7 or Chapter 13 bankruptcy, since the other types are mostly for businesses. If you have a small business, a Small Business Bankruptcy Attorney will be able to assist you in determining which bankruptcy might keep your business alive.

This biggest difference between Chapter 7 and Chapter 13 is the amount of assets and income level. If the means test for Chapter 7 says you make too much money to file, then you will need to explore Chapter 13. An experienced Chapter 7 Bankruptcy Attorney will be able to help you find out if you qualify for Chapter 7 or not.

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 Law Attorney. If you are located in or near Darnestown, 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) 997-5775 for a complimentary case evaluation today.