In Maryland, bankruptcy is an invaluable option for consumers with excessive debts. The claims provide certain protection and offer easier ways to settle debts. The court provides options for protecting the consumer’s home from their creditors. A bankruptcy lawyer in Frederick helps consumers review details about their claims.
Reviewing Automatic Stays
An automatic stay starts on the date in which the claim is filed. Once initiated, the creditors aren’t allowed to start any legal action against the consumer. Foreclosure, repossession, liens, and lawsuits aren’t allowed once the automatic stay starts. The consumer won’t have to worry about the legal attacks during their bankruptcy claim.
Protecting Your Home
A homestead exemption applies to your primary home. The exemption stops a trustee from selling your home during liquidation. In chapter 13, the property is included in the claim to help the consumer avoid foreclosure and remain in their home. The attorney discusses further measures with the consumer about securing their home.
How Liquidation Works
Liquidation starts with an acquisition of all titles and deeds for assets. The court appoints a trustee to manage the sale of all assets and distribute the funds to creditors. The trustee also provides the consumer with all exempted values generated from each asset. The claims provide a discharge for certain debts, too. The process is completed in under six months, and the consumer has a chance of becoming debt-free.
How Structured Plans Work
Structured plans involve a monthly payment that is submitted to the court or through wage garnishment. The consumer pays additional debts by using their disposable income. The cases last up to five years maximum, and they also offer discharge for debts such as unsecured credit card accounts. The court can discharge the entire case if the consumer doesn’t provide on-time payments.
In Maryland, bankruptcy is an opportunity for consumers to manage debts through the court. Their options include new repayment plans or liquidation. After the consumer chooses their chapter, their attorney helps them negotiate with creditors when possible. The attorneys lower the total value of the debts or obtain settlement offers. Consumers who want to review the chapters can contact a bankruptcy lawyer in Frederick or find more information here now.