Do You Really Need To File For Bankruptcy?

Any individual interested in filing for Maryland bankruptcy, whether it's chapter 7 or chapter 13 personal bankruptcy, must receive credit counseling at least six months prior to filing. New federal bankruptcy laws mandate this, especially the Bankruptcy Abuse Prevention and Consumer Protection Act.

A filer must receive credit counseling from a U.S. trustee-approved not-for-profit credit counseling agency. In addition to a pre-bankruptcy class, they must also attend a class in or receive budget counseling somehow to receive a bankruptcy discharge. Certificates of completion for both are required.

Credit counseling helps an individual determine whether or not they should file for chapter 7 or chapter 13 Maryland bankruptcy, or if they should even be filing at all. Maryland bankruptcy should always be seen as a last resort when all other options have not worked out. A more modest repayment plan might suffice in some individual cases.

Chapter 7 is straight bankruptcy, meaning an filer liquidates nonexempt property with the help of a court-appointed trustee to pay back debts. Chapter 13, on the other hand, reorganizes an individual's debt into a three to five year repayment plan. Contrary to what some might believe, filing for bankruptcy does not normally mean that someone will lose their house and car.

An individual must take a means test, which determines their monthly income. If higher than average for the state of Maryland, then they are ineligible for chapter 7, but can file for chapter 13. At any time, provided they are eligible, a filer can switch from chapter 7 to chapter 13 or vice versa, as long as they have not already switched once before.

Bankruptcy is meant to give a debtor a fresh start, but it is not always needed or even recommended. Credit counseling and competent bankruptcy lawyers can help you determine if you really need to file.

For experienced, knowledgeable and trustworthy bankruptcy assistance, contact the attorneys from www.legalhelpers.com. Call toll-free 800-260-1402 today for your initial free consultation or come into one of their 100 offices across the country.