The bankruptcy code is intended to protect debtors from the harsh situations that liquidation of their assets can create. That said, this can also leave a long term mark on your credit score, and you might find it difficult to get a loan or credit card, until your credit score improves. That said; if there is no other way to protect your assets, and you need these assets to improve your financial situation, then filing for relief under the bankruptcy code is a better idea.
Eligibility
One of the most important factors is eligibility. If you are choosing to file for bankruptcy, your lawyer will consider where you stand when it comes to your income and assets. While most individuals apply for relief under code 7, this could be difficult if you fail the means test. This means that your income and assets are above a specified limit. However, you can still choose to find relief under the chapter 13 bankruptcy Maryland.
Protect your home and assets
Your home is one of the most critical needs, which not only forms a shelter for you but also forms a means of wealth generation for you. This is why your first thought would be to protect your home. If you qualify for relief under chapter 13 bankruptcy Maryland, you can protect your home from foreclosure. You can also protect your car, if you are able to prove that your car is important for your work commute, for example, or for conducting income generating activities. There are other assets too that you may be able to protect to ensure that you are not left in a financially dire condition.
Getting your loan modified
One of the major parts of getting relief under chapter 13 bankruptcy Maryland is to have a modified loan, subject to agreement with the creditors and approval of the court. Usually, a debtor files for bankruptcy if their requests for negotiations with the creditors have not been heard or the negotiations have failed. Then, you can ask for court approval for your debt repayment plan. If the creditors agree, a debt repayment plan for the new loan is drawn up. A trustee will overlook the repayment plan where you will make monthly payments to clear your dues.
Whether you have credit card debts, student loan debts, or any other debt, you need to approach a chapter 13 bankruptcy lawyer Maryland to get your debts cleared as soon as possible.