Things About General Bankruptcy in Greenbelt, Maryland People Should know

No matter how hard people try, there are just some things in life that cannot be avoided. This would include bankruptcy. Although it may seem like it, bankruptcy is not the end of the world. In fact, depending on how a person approaches it, bankruptcy can even be the beginning of a fresh start. It is good if those facing bankruptcy can become aware of the various laws surrounding the process. An attorney who helps clients with general bankruptcy in Greenbelt wants clients to gain general knowledge about bankruptcy. The following is some helpful information.

There are two basic bankruptcies that individuals usually file: chapter 7 and chapter 13. The idea of the former is to completely eliminate all applicable debts to give the individual a fresh financial start. There are some debts that cannot be eliminated, such as child support and taxes. It also means that the secured debt does not fall under the chapter 7 elimination category, and the creditors can take back the property. That includes a foreclosure on a house or repossession of a vehicle.

Chapter 13 bankruptcy is a reorganization of the debts, and it gives the debtor an opportunity to catch up on their bills over a period of time – usually three to five years. Under this bankruptcy, the debtor may be able to keep their secured debt property as long as the courts can come up with a reasonable payment schedule for them. Other things that will have to be addressed include attending an approved credit counseling class within 180 days of the intent to file the bankruptcy. All financial records will need to be gathered to know what must be dealt with.

If an individual needs to consult a lawyer about general bankruptcy in Greenbelt, Laura Margulies & Associates LLC has been of great help to clients before. For over 24 years, this law firm has been giving people legal advice and representation in bankruptcy cases. They also deal with issues specifically related to foreclosures. If an interested party wants to get further information about general bankruptcy in Greenbelt, Maryland, this law firm is available.

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