Recent changes in the bankruptcy law made it harder for many people to declare a Chapter 7 bankruptcy. Only people who make less than the median income for the state in which they live are automatically granted the right to file for that type of bankruptcy. It’s often called the Fresh Start bankruptcy, because a person’s assets are liquidated and creditors are paid from the proceeds of the sale. Those people who earn too much money are forced into a Montgomery county MD Chapter 13 Bankruptcy process.
Chapter 13 bankruptcy proceedings assume that a person has enough money coming in every week to cover their basic living expenses. A court-appointed trustee looks at all of their income and assets and compares it to their living expenses. The trustee then creates a monthly budget that the debtor has to comply with. Every other cent is used to pay off creditors every month. This process can last between three to five years.
People often wait far too long to talk to a bankruptcy attorney. Some people are embarrassed, while others feel that they don’t have the money to spend on one. Bankruptcy law is extremely complicated. While federal law oversees the general bankruptcy process in each state, states are free to write additional regulations. Many states have added protected property to that listed in the federal law. That means the court can’t use these assets to pay off debt. An attorney is the best professional to explain the nuances of a Montgomery county MD Chapter 13 Bankruptcy filing and what it will mean for each individual.
To prepare for a meting with a lawyer the debtor has to pull together their financial information. For some people, this will be a terrifying experience. They should remember that an attorney has seen it all. They will need to verify their income and debts. They can start with least six months of pay stubs or retirement benefit payments. Hiding any income during a bankruptcy proceeding is a crime. They also have to show all of their bank statements and property deeds. On the liability side they have to show proof of all of their debts. Once the lawyer sees these listings they can recommend the appropriate way to file for Montgomery county MD Chapter 13 Bankruptcy. They will also know how to stop creditors from calling at this point.
An attorney is the best professional to explain the nuances of a Montgomery county MD Chapter 13 Bankruptcy filing and what it will mean for each individual.
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