If you’re currently struggling with financial problems, then you’re not the only one. Every year, millions of Americans choose to file for bankruptcy due to financial struggles. That being said, you should never choose bankruptcy unless you absolutely have to. Check out the following for more information about bankruptcy and why you may need a bankruptcy lawyer in Baltimore.
Bankruptcy isn’t for everyone. Many people mistakenly believe that they can simply file for bankruptcy and automatically eliminate the mounds of debt that they owe. Although filing for bankruptcy can eliminate some debt, bankruptcy won’t completely relieve you of your financial responsibilities.
There are two types of debt that people can have: secured debt and unsecured debt. Bankruptcy does a better job at eliminating unsecured debt. An example of a kind of unsecured debt is a credit card balance. Your credit card company has no legal right to repossess any property that you have in order to cover the debt that you owe. However, the company can sue you and receive a court ruling demanding that they be paid.
Secured debt cannot be easily erased. Examples of secured debt include a mortgage, student loans, or a car note. With every one of these examples the creditor has a right to either your property or the money they’re owed. For instance, if you fail to pay your mortgage, your lender can foreclose on your home. If you fail to pay your car note, your vehicle can be repossessed.
Before you file for bankruptcy you should seek the help of a bankruptcy lawyer in Baltimore. Your bankruptcy lawyer can walk you through the bankruptcy process step by step. He or she can help you with your claim and can help you plead your case to a judge. If your claim is denied, your lawyer can help you file an appeal.
These are just a few of the things you need to know about bankruptcy. Again, bankruptcy isn’t a financial move that everyone should make. Only certain kinds of debt can be eliminated by bankruptcy. Remember, if you owe secured debt, you’re responsible for paying it no matter what. Work closely with your lawyer in order to make sure the bankruptcy process goes smoothly.
