Frequently Asked Bankruptcy Questions in Maryland
Answers from bankruptcy attorneys in Rockville serving Prince George’s, Montgomery and Frederick County
Many people discuss the most intimate details of their lives, even with near strangers. However, even though millions of people file for bankruptcy every year, personal finance is usually a taboo topic unless discussed in the most generic terms. Therefore, you probably have a lot of questions. At Wolff & Orenstein, LLC, we have the answers to these common questions:
- Will I lose everything I own if I file for bankruptcy?
- What are the kinds of bankruptcy I can file?
- Do I need an attorney to file for bankruptcy?
- What happens to my credit score when I file for bankruptcy?
- How does filing for bankruptcy affect my credit?
For answers to your bankruptcy questions and a complimentary initial consultation on your case, contact our law firm
With more than 60 years of combined experience, our bankruptcy attorneys at Wolff & Orenstein, LLC have the knowledge you need to help you navigate through the bankruptcy process. Our lawyers are well known for their quality work throughout Montgomery, Frederick and Prince George’s County and all of Maryland. For a free initial consultation on your case, contact our Rockville bankruptcy lawyers at 240-670-4991 or online.
You will almost certainly lose all of your nonexempt assets such as vacation homes and boats. Assuming that you can afford to keep them and want to keep them, whether you file Chapter 7 or Chapter 13, you can keep your house, your cars, your clothing and personal effects, your retirement savings and probably even your baseball card collection.
There are basically four different types of bankruptcy according to the United States Bankruptcy Code. Which one you qualify to tile for depends on several factors including whether you are an individual or business.
- Chapter 7 bankruptcy is a liquidation bankruptcy program
- Chapter 11 is for business debt reorganization
- Chapter 12 is a repayment plan for farmers
- Chapter 13 includes a debt repayment plan for individuals
Bankruptcy is the most negative record you can have on your credit report. You will have difficulty gaining approval for loans or new credit, renting an apartment or landing a job in the financial sector because it impacts your perceived ability to pay your debts. A bankruptcy will remain on your credit report for ten years. After a few years of paying your bills responsibly and building up your credit score, you will begin to start qualifying for credit once again.
You do not need an attorney to file bankruptcy, but you certainly do want the most experienced and reputable attorney that you can find. Some consumers are pro se, or represent themselves, while others use a bankruptcy petition preparer who is not a lawyer. Your finances are so important to you and your family. Do not entrust them to just anybody.
If you are seriously behind on your obligations, your credit score is already low. Moreover, a rapid demise can be better than a slow fade. Your credit score drops another few points with every missed payment. A bankruptcy filing demonstrates to future lenders that you took control of your finances and made a very difficult decision.
After filing for bankruptcy — and provided that you pay all future obligations on time — your credit score will increase substantially within 12 months.