With the uncertainty of economy in the current era and a bleak future ahead as the businesses face an uphill task of managing overdue debts, unpaid salaries and vendor bills, filing for bankruptcy has become a logical choice for entrepreneurs as well as individuals. In such circumstances the first step is to seek support of an established and affordable bankruptcy attorney Maryland.
Bankruptcy- a business enabler
Bankruptcy can enable businesses and individuals start afresh as some of the provisions of this law help avoid closure. An individual or a business owner can thus work hard to gain a strong foothold without losing control over business or assets.
Even though a bankruptcy filing can negatively impact one’s credit score, it is always possible to bounce back and improve the score albeit slowly. Many individuals who lose their monthly income on account of an epidemic or an economy slow down can seek bankruptcy to buy a valuable time to begin again.
Filing for Chapter 7 bankruptcy
Cancellation of debts or repayment of debts by way of liquidating all or part of assets are important highlights of Chapter 7 Bankruptcy. Even if you have hired a reputed and affordable bankruptcy lawyer MD, the process of Chapter 7 Bankruptcy can linger on for five to six months.
Any debtor who is seeking to file for a bankruptcy is required to complete a credit counselling course under an authority by federal government. If you are residing in District of Columbia, Maryland, or Northern Virginia, then an appropriate state agency should be approached for such course.
It would be prudent to hire an experienced and affordable bankruptcy attorney Maryland to get the most reliable legal assistance in terms of arranging documents or fulfilling legal requirements as per the time schedule.
One of the most welcome provisions of Chapter 7 bankruptcy is to have your creditors prevented from harassing you for the outstanding dues.
Securing valuable assets through Chapter 13 Bankruptcy
Unlike Chapter 13 Bankruptcy that is commonly chosen by individuals with low or moderate income, Chapter 13 is ideal for those who want to safeguard their costly possessions. Usually, filers of Chapter 13 bankruptcy have a significant monthly income to settle their dues as per the revised payment plan.
The main advantage of Chapter 13 is individuals can hope to repay the loan over the period of five to six years by leveraging their monthly savings after supporting family expenses. Unlike Chapter 7 bankruptcy, enterprises cannot apply for this type of bankruptcy.
Choosing the right bankruptcy attorney
If you are considering Bankruptcy filing, then you will have to look for an expert and affordable bankruptcy attorney Maryland. The entire process of bankruptcy filing is cumbersome and time consuming. Moreover, there are a number of documents to be arranged for and submitted within the time lines.
Legal assistance is also crucial to decide which type of bankruptcy must be filed for maximum benefits. This underlines the importance of an attorney with a proven experience of successfully handling bankruptcy cases in the past.
Since every type of bankruptcy declaration is unique, one needs to understand key features before selecting either Chapter 7 or Chapter 13 bankruptcy.