To many people, bankruptcy is a scary word and a terrifying scenario. However, it can be a necessary evil for many people as well. In some cases, filing for bankruptcy can also be a relief, and it can give you a fresh start. But if you want to do it correctly, you should understand how to file, and a bankruptcy Maryland lawyer is the perfect person to ask for help.
Determine the Type
You can file for different types of bankruptcy. Chapter 7 is ideal if you don’t have much income and can’t afford to cover all of your debts. This type requires you to sell your assets so that you can pay back your lenders. Chapter 13 bankruptcy involves reorganizing your finances. You don’t have to sell your belongings to pay off your debts, but you will need to set up a plan to pay back your loans.
Consult a Lawyer
While you technically can file for bankruptcy without a lawyer, hiring one can make the process easier and less overwhelming. Your lawyer can walk you through your options. If you’re eligible for Chapter 7 and Chapter 13, your attorney can help you decide which type is better for you. An attorney can also help you negotiate a payment plan with the court and your lenders.
Fill Out Paperwork
Filing for bankruptcy requires the right paperwork stating your financial situation and other details. Whether you work with a lawyer or not, you’ll need to gather all of your information to fill out any forms that you need. Then, you can make sure that you do everything legally and that you can reach a sense of financial relief.
Filing for bankruptcy may or may not be your best option if you have a lot of debt. However, working with a bankruptcy lawyer can help you figure out if it’s worth it for you to do so that you can move on from your debt.