When people suffer a serious illness, they often face a double dilemma. Their medical bills pile up quickly and they no longer can work. Even if they have medical insurance and a working spouse, they may not be able to keep up with the cost of their recovery. It may embarrass them to admit that they can no longer pay their monthly bills. As soon as this situation occurs, they should contact one of the Bankruptcy Lawyers in Bel Air, MD. He will evaluate their income level, secured debt and outstanding non-secured debt.
A lawyer from the Christman & Fascetta LLC will help the debtor determine if they qualify for a Chapter 7 or Chapter 13 bankruptcy. In most cases federal law limits the option of filing a Chapter 7 bankruptcy application to people who make less than the median income in their state. Those who have more financial resources must use the Chapter 13 process. When Chapter 7 is used, the bankruptcy court appoints a bankruptcy trustee to sell all of the assets of the debtor. The proceeds from these sales are then used to pay off the creditors. Federal and state laws protect many of the debtor’s assets from sale. Usually people can keep their house and car. When debtors contact a lawyer before they start to fall behind on their house and car payments, they have the best chance of keeping those assets. Usually the trustee sells the debtor’s property in a few months. Once the creditors are paid, the bankruptcy process is complete.
A Chapter 13 bankruptcy filing takes a lot longer to complete. Because the debtor has more money coming in each month, the court expects them to make payments to the creditors on a regular basis. A bankruptcy trustee is appointed to oversee the budget and payments to creditors. The trustee reviews the monthly expenses and income of the debtor. Any income above a certain level has to be given to the trustee. He then distributes it to creditors. Depending upon the amount of debt, this process can last up to five years. The debtor must make payments every month, to ensure that all of the remaining debt is forgiven. Missing one payment can void the bankruptcy. A Bankruptcy Lawyers in Bel Air, MD will make sure that the trustee establishes a fair budget.
