Consumers who are deep in debt may be afraid to file for bankruptcy. They believe that they will be stigmatized for the rest of their life. These perceptions aren’t accurate. These debtors should make an appointment with bankruptcy attorneys such as those at the Thompson & DeVeny Co LPA Dayton, Ohio law firm to learn the true impact that bankruptcy will have on their lives. They might be surprised to learn that their credit score might actually increase because they aren’t saddled with debt they can’t repay.
Because cars and homes are often exempt property in a Chapter 7 or 13 bankruptcy process, a debtor can emerge from bankruptcy with both. If they make prompt payments on both of these items, they can efficiently rebuild their credit history. In addition to keeping their home and car, they will also be able to keep other assets such as household appliances and furniture, clothing and the tools they need to make a living. They’ll be more relaxed and sleeping better, because there will be no more creditors calling them at work and at home. After a few years of responsible money management, banks and credit unions will even consider lending them money again.
Maryland debtors who make less than the median income for the state, automatically qualify for a Chapter 7 bankruptcy. This type of bankruptcy requires that the court appoint a bankruptcy trustee who will sell all of the non-protected assets the debtor has. The proceeds from these sales will be distributed to the creditors. The entire process only takes three to six months and then the debtor is free to move on with their life.
This sounds like a rosy scenario and debtors may think that they don’t need to pay for an attorney from the Thompson & DeVeny Co LPA Dayton, Ohio law firm. However, they have to remember that the bankruptcy trustee works to get the most money for the creditors. It’s the debtor’s attorney who will work to protect as many assets from the bankruptcy process, as legally possible. If the correct steps aren’t taken in the proper order, then debtor could lose their house and car. Visit us for more information.
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