Maryland Bankruptcy Lawyers
The decision to file for bankruptcy can be a pretty drastic measure to take. Not only can it be embarrassing and time-consuming, but also very expensive. However, if declared at the right time and in the right way, bankruptcy can relieve you of an immense burden on your shoulders and help you start afresh by having your debts erased.
Losing track of your expenses and payments due on car insurance, mortgages, credit card payments, and utility bills is easy. There are measures though that you can take to avoid having to resort to bankruptcy. Here are some important tips to consider when declaring your bankruptcy.
Evaluate Your Debts
First things first – check the types of debts. You have to determine which of these can be erased and which cannot. Although filing for bankruptcy can help you have many debts erased, there are many types that do not fall within the criteria. You need to check to what extent your debts can be erased so you are in a better position to declare yourself bankrupt. The following are the types of debt that cannot be erased in a court of law:
- Child support
- Alimony
- Most types of student loans
- Taxes that are less than 4 years old from the date of filing
- Any taxes that were found to be fraudulently owed
- Any employment withholding taxes
- Loans which you have obtained illegally
- Debts you incur after filing for bankruptcy
- Debts you incur in the six months prior to declaring bankruptcy
- Debts incurred as a result of personal injury while in a state of intoxication
- Intentional acts in which a judgment was entered against you (i.e, battery or assault)
Get Your Taxes in Order
You must also get your taxes in order, as you cannot file for bankruptcy without doing so. This is especially important if all of your debts can be discharged.
Know About Different Types of Bankruptcy
The different kinds of bankruptcy laws are set forth in the U.S. Bankruptcy Code.
Businesses and individuals can file for bankruptcy under Chapter 7, where you can choose to either allow the creditor to repossess your property or pay the creditor an amount equal to your current property value. Businesses can also choose to reorganize their debts under Chapter 11.
Or you may qualify for Chapter 13 Bankruptcy, where, depending upon the amount of income you have, you can choose to pay back your creditor via a repayment plan lasting between three and five years.
Get a Bankruptcy Trustee
You can be assigned a bankruptcy trustee who will act as a mediator between you and your creditors. The trustee will be responsible for overseeing all the details of your documents and will be able to accurately advise you on how much debt you can keep with respect to the differing state and federal laws.
Watch Out for Sharks
Often, the lengthy and tedious process of bankruptcy can be deterred by a number of problems that the plaintiff may not expect, which is why you can ask for help from an authorized professional. Get in touch with Altmark, Rotter & Trock, LLP and let an experienced attorney guide you through the difficult process. Call 410-783-9230 for a free consultation.