The soft economy and weak job market has forced many people into bankruptcy. They have no financial cushion when an illness strikes or a spouse demands a divorce. As the bills start to pile up, they realize that they can’t possibly afford to pay all of their bills each month. Speaking with a Bankruptcy Attorney in Prince Georges County, MD is their best move. An attorney form Laura Margulies & Associates, LLC will review their income, assets and debts. She will then determine the best bankruptcy strategy for them to pursue.
If they are low-income Maryland residents and have incomes below the median for the state, then they qualify to use the Chapter 7 bankruptcy process. This is often the preferred bankruptcy because it often takes less than six months. The person is then free to restart their lives. A judge appoints a trustee to evaluate all of the property and assets that a debtor has. Federal law exempts homes, cars and the equipment a person needs to make a living. Everything else is sold to pay off creditors. Usually there isn’t enough to pay each creditor fully. The remaining debts are forgiven. Some debts can’t be forgiven in a bankruptcy process. Those include alimony, child support and taxes. A Bankruptcy Attorney in Prince Georges County, MD will oversee this process carefully for their client. They’ll make sure that all property that should be exempt from the process is.
To ensure that their client comes out of bankruptcy in the best possible position, the attorney from Laura Margulies & Associates, LLC is also able to negotiate a better divorce settlement. It’s also important that a repayment process be established for back taxes. A person can only declare bankruptcy every seven years. So it’s important that all debt be brought under control. If this isn’t done the person may again fall behind in their bills. Only they won’t have the ability to declare bankruptcy. Their lawyer will have to examine every financial agreement and deal they made. Creditors not part of the bankruptcy process will have to understand that they have to agree to new terms, if they want to receive any money at all. These may include reduced monthly payments or lower interest rates.
