You probably don’t know a lot of people in Gaithersburg who want to talk about bankruptcy. For a process that is incredibly common throughout the US, both for businesses and individuals, bankruptcy seems to have a kind of taboo attached to it. Does filing for bankruptcy amount to admitting to failure? Are you going to lose everything and be forced into a lower standard of living? Will your friends and family members scoff at you? The answer to all of those questions is a resounding no – bankruptcy exists so that when times are incredibly tough, you can get out from under debt that is impossible to deal with in any other way.
Filing for Bankruptcy is Not Easy
However, that doesn’t mean that filing for bankruptcy in Gaithersburg is going to be an easy decision or that the process will be quick and simple. In fact, most people who file for bankruptcy work really hard to figure out if there is another way, and then they work hard throughout the process. Just figuring out what type of bankruptcy to file for is a process, as you have to determine whether you qualify for certain types of bankruptcy.
Under Chapter 11 bankruptcy, you are actually allowed to keep assets as you restructure your debt to be more manageable. Some debts may be cancelled and others may be combined to make payments more realistic. Businesses filing Chapter 11 bankruptcy find that they become more solvent and valuable after the bankruptcy proceedings. Of course, it’s not all good news, but it can be a good way to renew your commitment to making things work.
Under Chapter 7 and Chapter 13 bankruptcy, payments are made over a period of time or you may completely walk away from debts that are impossible to pay off. This can include a mortgage, alimony payments, or other debt. However, assets are taken into account and you may have to walk away from the house as well as the mortgage. Chapter 7 bankruptcy is a kind of all-in bankruptcy, for people who want to be completely done with their debt and everything related to their debt.
Depending on your income, the specifics of your financial situation, assets, and debts, you may or may not be eligible for one or more types of bankruptcy. That means you have to understand the system before you can file for bankruptcy successfully in Gaithersburg. Most people in Gaithersburg hire a bankruptcy attorney to help them through the process so that the maximum benefit can be taken from the bankruptcy proceedings.
If you are in a situation with debt that you cannot see your wait out of, contact a bankruptcy lawyer in Gaithersburg at Goren, Wolff & Orenstein, LLC.