Bankruptcy Attorney Can Assist When No Other Option Makes Sense
There are times—especially now, as COVID-19 outbreaks and their variants continue to ravage the nation—that cause businesses to close, work to slow, cost of living prices to rise, and bills to pile up. Financial problems mount and become so bad is feels as if they might swallow you up.
While many companies are doing their best to work with customers in order to help them stay above water, tanking financial stability can be a difficult situation from which to overcome. Contacting the right bankruptcy attorney, such as the lawyers at Rowena N. Nelson LLC, can help guide you through financial problems, easing your stress and ultimately, eliminating the debt that keeps you awake night after night.
Common Reasons for Bankruptcy
There are many reasons why people may be forced to consider bankruptcy, including unemployment, unexpected medical expenses, unmanageable overextended credit that has led to creditors filing suit to be repaid, and divorce.
Bankruptcy provides filers a second chance to rebuild their finances, and while credit scores will be low following a bankruptcy, it will recover; after a few years of rebuilding your financial health, your credit score will be excellent.
Types of Bankruptcy
For individuals, there are two different types of bankruptcy, Chapter 7 and Chapter 13. Your bankruptcy attorney will assess your situation including assets and income to determine which type of bankruptcy best suits your individual situation.
Chapter 7. Designed for individual who have overwhelming personal debt that they cannot pay back. Also known as liquidation bankruptcy, Chapter 7 is limited to those with certain income thresholds, and if there is any significant property owned—not including a house or one vehicle—it will likely be liquidated to pay back at least some of the debt. Those whose income goes over that threshold are not eligible for Chapter 7.
If there are no assets, the slate is essentially wiped clean.
Chapter 13. This is more of a repayment plan, and instead of asset liquidation, a repayment plan can be set up that can be less than what you owe. Chapter 13 is ideal for homeowners who want to keep their home and continue making mortgage payments without fear of foreclosure.
Both options provide significant financial relief, but not all debts can be erased via bankruptcy, including alimony, child support, some taxes, debts to government agencies, debts for personal injuries that occurred during a DUI, or other court fines and penalties. Lawsuit judgements, however, can be lifted in a bankruptcy case.
Are You in Search of a Bankruptcy Attorney?
Bankruptcy filing can be confusing, and you shouldn’t try doing it alone. The right attorney can help make sure you don’t overlook any suitable debt so you can come out of bankruptcy fresh and free from agonizing financial obligations.
Contact the law office of Rowena Nelson, LLC via email at [email protected] or by calling (301)-358-3271 for a consultation. She and her team of skilled attorneys can help with bankruptcy law needs.
Located in Upper Marlboro, Maryland, Rowena N. Nelson’s offices serve the entire state of Maryland.