You already have begun to feel bankrupt. Now you are thinking of officially declaring yourselves as bankrupt. Yet, a question ruffles your mind: are you in enough debt to file for bankruptcy?

How much should a person be in debt (in monetary figure) to declare bankrupt?

Well, the law, as such, does not fix any minimum debt amount to file a bankruptcy petition. Yet, it is crucial to consider the amount of debt while taking this big decision. You need to seriously evaluate your financial condition, including assessing your total debts, your creditors, your structured and unstructured debts, your income, your assets, and more.

It is wise to hire a local bankruptcy attorney in Maryland and discuss your financial situation with them. Many lawyers offer free initial consultation. So, if you are doubtful whether you must really file for bankruptcy, you can take their advice.

Maximum debt limit

Chapter 13 features a maximum debt limit of $1,184,200 in secured debt and $394,725 in unsecured debt (as of 2018).

When to file for bankruptcy?

Many people go in debts; many are unable to pay; but not all file for bankruptcy. So, whether to file or not to file is an important decision.

You just cannot go bankrupt at the first instance of missing to pay your debts. You must weigh all the other options and then choose bankruptcy as the last resort. This is because becoming bankrupt is not a matter of pride. It hits your credit score hard. In fact, it taints your score, because the record stays for 8-10 years. Moreover, filing for bankruptcy is not free. It comes with a price tag.

So, before you plunge into the bankruptcy water, think hard. Discuss with a lawyer. Then go for it, only if needed.

When bankrupt, call a lawyer

Once you decide to file a bankruptcy petition, hire a local bankruptcy attorney in Maryland. Many people think they can do without a lawyer. It may seem easy initially, but as your case proceeds, you encounter a lot of legal jargons and processes that are complex to understand. Bankruptcy process also features heavy paperwork. In addition, you must undertake two courses, the certificates of which you need to provide in court.

Amidst all the legal proceedings, chances are that you may omit or err in any documentation. Also, by the time you understand each process, a feeling of frustration and hopelessness begins to envelope you, as you have nobody to help you understand the steps.

On the contrary, if you hire a lawyer, he or she handles all the legal proceedings and guides you in each step. You can sail as smoothly as possible. Even if a complication arises, a lawyer knows how to handle it.

So, if you are thinking of declaring yourselves bankrupt, find the best lawyer first. Even before that, make sure whether bankruptcy is the right choice for you. What if you can manage your finances without declaring yourselves bankrupt? However, if your finances are in a mess, bankruptcy could be a savior.

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