For Chapter 7 Bankruptcy Maryland Lawyers Are Eager To Show You The Easiest Way!
The Covid 19 pandemic has brought the entire world to its knees. While a few industries, such as health care and drugs manufacturing, have seen unprecedented profits, the situation is extremely bleak for many others.
There are also start-ups that had just seen the light of the day when the forced shutdowns made them cower in fear and darkness of cash crunches and uncertainties of the market.
Looking for relief
In many cases, businesses go under and find it extremely hard to recover from their losses. When financial burdens break the camel’s back and the accumulated debts form a massive, persistent demon for the debtor, they seek relief in bankruptcy.
Here, let us understand, in simple terms, what Chapter 7 bankruptcy Maryland means for the debtor.
A Chapter 7 bankruptcy is also called as liquidation or straight bankruptcy. If you file for it, it will help clear away most of your unsecured loans.
While this sounds like manna from heaven, the fact is it comes with lots of riders. A Chapter 7 bankruptcy northern Virginia will help you to reset your finances but you may have to part with your assets and obviously it will have a negative effect on your credit rating.
How it works
You file for Chapter 7 bankruptcy.
The court places a temporary stay on your current debts, which stops your creditors in their tracks to harass you for collections.
The bank appoints a trustee for your case and takes possession of your property.
The trustee delves deep into all your financial matters and takes key decisions regarding the payments to be made to different creditors.
To generate money for repayment, some of your assets will be sold off. To ensure smooth communication between you and your creditors, the trustee will arrange for a ‘creditor meeting’ for which you are expected to go to a courthouse and provide details of your filing for bankruptcy.
The list of assets that are exempt from being sold off to meet the debts varies from state to state. While there are many debts that are cancelled by the court, such as credit card, medical bills, etc., there are several payments that you have to make, like alimony, child support, student loans, etc.
The land of laws is a complex one, and for any layperson the navigation of it is not easy at all. On the face of it, you may feel that you will be able to file for bankruptcy on your own. But it is a long and arduous journey and if you want to emerge unscathed, you should definitely get the right legal help.
If you seek assistance of a leading law firm, such as the law office of R N Nelson law MD, you will ensure that you are helped every step of the way. The lawyers understand the intricacies of law and the potential loopholes and they walk the extra mile to obtain relief and justice for you.