Many individuals in Maryland and across the nation may be no stranger to the strain of dealing with high levels of debt. While there are outlets such as bankruptcy that could help provide relief from similar hardships, knowing how to choose the best path for relief can also be a daunting concept. Part of knowing how to tell if it might be time to explore the relief provided through bankruptcy could involve gaining a better understanding of the process.
As filing for bankruptcy may be a major financial decision, being thorough while exploring one’s options could prove imperative. Some topics that may help provide insight on what is involved with bankruptcy could include:
- Knowing the options: Chapter 7 and Chapter 13 bankruptcies both function in different ways and gaining insight on each type of bankruptcy could play an integral role in making an informed decision.
- Assets and debts: It could also prove vital to seek advice on how assets and debts will be handled during bankruptcy, as this may influence the choices a person makes.
- Bankruptcy protections: Understanding some of the possible protections provided by bankruptcy could also be helpful, such as those pertaining to creditor lawsuits or wage garnishment
- Impact on credit: While it is no secret that bankruptcy can affect one’s credit score, continuing to deal with debt may cause similar challenges.
There is also the question of eligibility, as a person must meet certain requirements before being able to file for bankruptcy.
Individuals who wish to pursue relief from the trails of financial strain but remain uncertain if filing for bankruptcy is the best decision could find it helpful to seek legal counsel prior to settling on a path. An attorney can examine a client’s financial situation and provide insight on each of his or her available options. Such guidance could play a vital role in helping a person prepare to safeguard his or her financial future by pursuing relief from the burdens of debt.