How Chapter 7 Bankruptcy Can Help You Start Over

How Chapter 7 Bankruptcy Can Help You Start Over

Managing your personal finances is an important responsibility. Unfortunately, doing this has continued to become more challenging as the years go by. For the past few decades, costs of living have continued to outpace the increase in average wages. Due to this, many more people today can feel financially strained than ever before. In some cases, the best financial option that you may have is to work with a Baltimore Maryland bankruptcy attorney and file Chapter 7 bankruptcy. This can be a great way to get a fresh start on your financial life.

What is Chapter 7 Bankruptcy?

There are various types of bankruptcy that you can file in the United States. While some will focus on restructuring your personal debts, a Chapter 7 bankruptcy will instead focus on discharging them. In most cases, you will need to liquidate many of your personal assets. However, you are often able to keep a portion of the equity in your home or vehicles, your retirement accounts, some personal assets, and other belongings. Other assets, such as savings and checking accounts, could be liquidated and used to pay down your outstanding debts. Typically, your Baltimore Chapter 7 bankruptcy attorney will help you have many of your personal debts fully discharged, which can include credit cards, medical bills, and other outstanding loans. 

Who Qualifies for Chapter 7?

While a Chapter 7 bankruptcy can be a great way to restart your financial life, not everyone will qualify. When filling a Baltimore County Maryland bankruptcy, you will need to pass a couple of tests to ensure you are able to qualify for this type of bankruptcy filing. In general, you must have a personal income that is less than the median income in the state. This is typically measured based on the past six months. Even if you have a higher income, you could still qualify based on the “means test” that will incorporate certain personal expenses. Ultimately, this is used to determine if you can get out of debt on your own or need the Chapter 7 bankruptcy filling. 

How Bankruptcy Can Give You a Fresh Start

One of the main advantages of filing bankruptcy is that it can give you a fresh start with your personal finances. Chapter 7 can offer a fresh start several ways:

Discharge Many Debts

One of the main advantages of Chapter 7 is that it can help you discharge your debts. Chapter 7 will often help you eliminate many unsecured debts including credit card debt, medical bills, personal plans, and other debts that otherwise will be holding your finances back. Eventually, as your credit repairs, you will qualify for loans again. 

Retain Some Assets

While some of your assets will be liquidated to pay down your debts prior to discharge, you will be able to keep others. Some that you can hold onto include retirement accounts, some equity in your home, and personal assets. 

Quick Process

Finally, a Chapter 7 filing can be quick and efficient. The entire process is often over within a few months, which will allow you to start rebuilding your personal finances sooner than you would otherwise. 

How an Attorney Can Help

There are clearly advantages that come when you are going to file a Chapter 7 bankruptcy. When hiring a Maryland bankruptcy lawyer, you will receive a variety of different services. First, the attorney will provide a full consultation on your case. This can help you determine whether you qualify for Chapter 7 and will give you the insight you need to fully understand the process, benefits, and consequences. Your attorney will then ensure that your Chapter 7 filing is done the right way and that the process goes smoothly. When hiring a Chapter 7 bankruptcy attorney Baltimore Maryland residents will also find that it is helpful as the attorneys can handle all discussions and negotiations with creditors, which will result in the best outcome possible while helping you avoid as much stress as you can. 

When looking for a bankruptcy attorney Baltimore MD area residents should reach out to the team with the Law Offices of Kim Parker. These legal professionals can offer a variety of bankruptcy services that will ensure your filing goes smoothly and that you receive the legal support you need. This can help ensure you are able to get a fresh start on your financial life.