Bankruptcy is the solution for many issues such as foreclosure on a house, wage garnishment, car repossession, and so on. Hence, many find it as the solution for all kinds of their financial issues, as it will offer a second chance in their life for many to start from ground zero. Finding the right time to file for bankruptcy is the first step here.
Understanding everything about bankruptcy is possible with the help of a bankruptcy attorney in Hagerstown, MD and you can find one by visiting Hinkle Law PLLC in Maryland. The attorneys here know very well how to work with bankruptcy claims and can help you through all the steps in life from then on.
Types of Bankruptcy
Here are some of the many kinds of bankruptcy that are available for people in need to claim.
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Chapter 7
This type of bankruptcy is also known as “straight liquidation”. After filing the petition, there will be a validation of 6 months for the petitioner to list their debts including everything for the petition to proceed further.
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Chapter 11
Chapter 11 liquidation option is available for business organizations. Even though this option is available for individual filing, the maximum percentage of petitioners that choose this option are businessmen. The main goal here is to pay the debtors as early as possible so that they can retain their possessions.
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Chapter 13
This type of liquidation is also known as the best plan for the “wage earners”. This is ideal for such people that have nonexempt assets or they have the median average above income. This option is given for such people that can clear debt to their creditors within the next 3 to 5 years.
After Filing Bankruptcy
After filing for bankruptcy of the right kind, the next step here is to submit all kinds of the required documents to your Trustee, in specific time intervals. The case will get dismissed if the right kind of required documentation is submitted at the right time. Hence, it is suggested to prepare all the documents to file for bankruptcy.
Once you have completed all the formalities of filing bankruptcy, the court will handle the work of sending a notice to all your creditors to make them aware of your financial condition and also to retain from asking their money back. However, some of the factors such as the child support hearings or criminal cases will not be made to stay.
