Best Foreclosure Lawyers in Bowie, MD

There are generally two types of bankruptcy that help protect people who are experiencing financial situations that do not allow them to pay their creditors: Chapter 7 and Chapter 13 of the Bankruptcy Code, explained later. Then there are the Chapter 11 processes that generally apply to people who have assets above the debt limits established for Chapter 13 and want to protect those assets against collections from their creditors.

Among the main reasons people request Chapter 13 protection are: The person does not qualify for Chapter 7. The person wants to pay his creditors without incurring the payment of more interest and having a fixed monthly amount. The person is behind on their mortgage payment, the creditor wants to auction off the property, and the person wants to stop the auction and catch up on the mortgage payment. The person has two home loans on her residence, the value of her residence is less than what she owed on the second loan, and the person wants to eliminate the second loan. The person is behind with the payment of his vehicle, the creditor intends to regain possession of the vehicle and auction it, and the person wants to stop the repossession and catch up on the payments on the vehicle. The person owes a lot of money to the treasury for non-dischargeable taxes and needs protection against wage or bank account garnishments. The person has assets with high capital gains (what they owe on those assets is less than the asset is worth and can be auctioned off and paid to creditors with the profit), has exhausted their exemptions, and wants to keep those assets. Chapter 13 offers you the same protections as Chapter 7, in addition to protecting assets that could not be exempted and allowing you to make payments that are generally much lower than the payments you would have to make if you did not file for protection under Chapter 13.

Some debts are considered nondischargable and therefore, even if the person receives a discharge, the debt survives the bankruptcy and the creditor can collect the debt once the person has filed for bankruptcy. The following are examples of debts that are not dischargeable and usually survive bankruptcy: Certain debts due to state or federal taxes owed. Debts due to past due alimony. Debts acquired in divorce or separation proceedings in favor of the former spouse or a child. Debts for fines and penalties in favor of a government entity. Student loans.