While bankruptcy is not something that an individual or couple should take lightly, there are times where filing for bankruptcy, as difficult as it may be, is the only way out of a particularly difficult financial situation. However, to understand the ramifications of bankruptcy and to find other options in order to avoid filing for bankruptcy, a person may want to first consult with a Bel Air, MD bankruptcy law firm.
Speaking with a bankruptcy attorney can shed a bit of light on the possible options a person has. There are times where a person simply doesn’t have any other option than to file for bankruptcy. Talking to an attorney can help an individual or couple understand the process a better. This can help them to be better prepared for the things that they are going to have to face when going through the bankruptcy process.
Another thing that many people aren’t aware of is that there are restrictions in terms of the types of bankruptcy someone can file for. When a person visits a bankruptcy attorney for the purpose of filing for bankruptcy, the attorney will give their clients a means test. This basically establishes what type of bankruptcy an individual or a couple are legally able to file for.
While the definitions can be rather complicated, to boil it down succinctly, if a person makes too much money, they will be relegated to filing for chapter 13. While this technically is a legal bankruptcy process, it’s also a repayment plan demanded by the courts for a duration of 3 to 5 years. The good thing is, this repayment plan is structured in a way that the individuals filing for bankruptcy can afford the monthly payment required.
For low wage earners, who typically represent most of the people that file for bankruptcy, chapter 7 is the other choice. Chapter 7 either greatly reduces or eliminates most of an individual’s debt. This allows them to hopefully get on a more firm financial footing for the future.
There are simply too many aspects of bankruptcy to discuss in this article, which is why a consultation with a Bel Air, MD bankruptcy law firm is so paramount. If you need to know more about the bankruptcy process, or if you want to set up a consultation appointment, you should go online and visit the website of Christman & Fascetta LLC.