Although the term ‘bankruptcy’ has a negative ring to it, it is important to understand that this legal proceeding may offer individuals a gateway to manage their huge debts and save their most precious possessions from being recovered by banks or creditors. If you are struggling to pay off your debts and are facing a hard time with the harassment from creditors, bankruptcy can possibly offer you some breathing space and a better financial future with restructured debts that can be paid off across an extended period of time. For this reason, a bankruptcy attorney will carefully study the extent of your financial crisis and advice you under which chapter you would need to file for bankruptcy.

Benefits of filing for bankruptcy

Filing for bankruptcy will indeed be a great turning point in a person’s life and offer him the confidence to begin anew towards a more stable financial future. Based on the chapter of bankruptcy that you have opted for, you can either pay off the debts in easy installments or eliminate the debts.

According to Largo Maryland bankruptcy lawyers, the most positive aspect of taking this great stride is to rein in aggressive action from the creditors’ side who are desperately attempting to reclaim their payments in methods such as foreclosure of your assets. This is exactly why lawyers come to your rescue in such situations and utilize their expertise and experience to help you deal with the legal formalities related to bankruptcy and assists you to get the court settlement you expect.

Becoming familiar with different chapters of bankruptcy

There are several chapters of bankruptcy that your attorney may consider before finalizing on the right one for your particular situation. Of these, Chapter 7 and Chapter 13 are most commonly used to help individuals deal with mounting debts.

Here is a closer look at both these chapters

Chapter 7, also known as straight bankruptcy, is the right solution if your immediate requirement involves eliminating all debts and starting afresh. This type of bankruptcy works by selling your non-secured properties and using the cash generated from the sale to settle debts of different creditors. If you are willing to let go of a portion of your assets for a better financial future, your Largo MD bankruptcy lawyer will highly recommend filing for Chapter 7 bankruptcy.

Individuals who may not qualify for Chapter 7 bankruptcy are directed towards Chapter 13 bankruptcy. If you earn an average income and do not have assets sufficient to settle your debts, Chapter 13 bankruptcy would be the right choice. This chapter enables your attorney to negotiate with your creditors on your behalf and arrive at mutually agreeable terms of payment. This way, the debtor can comfortably pay off the loan in smaller amounts across an extended time period. The key advantage of this chapter is that the debtor gets to protect his assets from foreclosure by, slowly but surely, settling his dues.

Author's Bio: 

Without the legal expertise of Largo Maryland bankruptcy lawyers, you will struggle to understand the intricacies involved in the bankruptcy process. With years of experience in dealing with innumerable bankruptcy cases, these lawyers have the expertise to present your case in the best of your interests and earn you a favorable outcome.