When the bills far outweigh the amount of money coming in, it becomes an overwhelming situation. There are plenty of radio and television commercials about credit repair programs that target people in these situations. Don’t be scammed by these types of organizations. Many of the credit repair companies are nothing more than a scam that offers no valuable information. They are filled with false hopes and empty promises, and they take people’s money and give them nothing in return. These types of companies should never ask for money before providing their services. They should only be paid after they’ve completed what they’ve promised someone.
The best way to determine what direction someone’s financial future should take is for them to visit an attorney that’s experienced with chapter 13 bankruptcy in Rockville. This type of bankruptcy offers a three to five year repayment plan to the creditors and can stop a home foreclosure, and missed car or mortgage payments. It can stop interest from accruing on tax debt and keep the valuable non-exempt property. Only a bankruptcy lawyer can determine if this type of bankruptcy is available to someone based on their assets and income.
The amount of money someone has to pay back as the result of a chapter 13 bankruptcy in Rockville is determined as part of the Maryland Means Test. The amount of money someone has to pay over a three to five-year period must be as much as the same creditors would have received if a debtor filed a chapter 7 bankruptcy. When this type of bankruptcy is filed, the debtor usually wants to maintain their current assets. This type of bankruptcy is ideal when a debtor can keep their secured assets through the use of Maryland bankruptcy exemptions and has a regular source of income to apply to their payment plan.
Chapter 13 bankruptcy in Rockville is a great option when there are too many bills to pay and not enough income to pay them. If someone has very few assets and very little income, chapter 7 provides the most attractive choice to eliminate the heavy debt burden someone may have.
