When you can no longer pay your debts, you may want to consider contacting a Silver Spring Bankruptcy Lawyer. Bankruptcy is a procedure that gives people who cannot pay their bills an option to start fresh. Some of your bills could be completely discharged and others reorganized so that you would keep paying them under the supervision of a court trustee.
If you have a lot of unsecured debt such as medical bills, bankruptcy can be a way to stop the harassing phone calls as well as stop any kind of legal action against you by your creditors. As soon as you file for bankruptcy, an automatic stay goes into effect. When that happens creditors can no longer take any action against you.
A Chapter 7 bankruptcy is the most common type of bankruptcy filed. In a Chapter 7 bankruptcy, the unsecured debt is totally eliminated and debt collectors will have to stop their debt collection efforts. All assets are liquidated that are not tax-exempt. A Chapter 11 bankruptcy is used for businesses and can be complex. The assistance of a Silver Spring Bankruptcy Lawyer would be beneficial in a Chapter 11 bankruptcy. A Chapter 12 bankruptcy is for family farmers only. A Chapter 13 bankruptcy is a reorganization of debts, which allows debtors to keep property that they may otherwise lose such as their homes, cars, and pension plans. Reorganization of debt allows debtors to pay creditors back over time. A Chapter 13 bankruptcy can be a fair settlement for creditors and would help the debtor start new without being saddled with debt that he cannot afford.
As of 2005, a new bankruptcy law went into effect. Currently when filing for bankruptcy, clients are required to go through a government-approved credit counseling program within six months before their bankruptcy protection claim is filed. The counseling can take place in person, on the telephone or even online.
When searching for a Silver Spring Bankruptcy Lawyer, give the American Bar Association a call and ask them if they can help with information for bankruptcy lawyers in your area. Getting recommendations from family and friends is also a good way to find trusted bankruptcy lawyers as well.
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