Filing for bankruptcy is a highly unpleasant experience and the initial thought may to be to get it over with as quickly as possible. This is not the right approach. Even though it may seem like no matter what, you lose everything and have your credit ruined, this is not true. Filing Bankruptcy Silver Spring actually presents many options to allow you to set the course for recovery that is right for you. The first choice is whether to file for Chapter 7 bankruptcy or Chapter 13 bankruptcy.
Chapter 13 bankruptcy is seen as a reorganization. Rather than completely eliminating all debts and losing your property in return, it allows for a restructuring of existing debts. It will stop collection actions against you as well as a repayment plan that works for both you and the creditors. It may also prevent you from having to sell off assets that are already paid in full, as there will be no immediate large sum due to creditors.
Chapter 7 bankruptcy is more of a reset button. All debts are wiped out. However, in order to do this, you must have essentially no assets. What this means is outside of bare minimum allowances for housing, transportation to work, and food, you must have already lost everything or sell off everything and use the proceeds to partially pay the debt.
When Filing Bankruptcy in Silver Spring, an experienced attorney can help you choose the option best for you based on your personal situation. In addition to the debt at hand, there are also varying long term consequences on your credit report and in future job searches. A lawyer will help explain these consequences and choose the route that will impact your life the least. Once you have made your choice, the lawyer will help prepare the filing. In doing this, they will use their knowledge of the law to maximize what you are allowed to keep and minimize what you have to give to creditors. Although this is mostly set by statute, there are some gray areas and room for negotiation that only an experienced attorney will be able to best use to your advantage.