People who have a great deal of debt often feel trapped. Whatever the reasons behind the accumulation of debt, it is very easy to feel as if there is no way to honor all those obligations. For those who find themselves slipping further behind with each passing month, the time has come to seek one of the bankruptcy attorney in Baltimore and get some professional advice.
Assessing the Financial Condition of the Client
In order to provide help, bankruptcy attorneys in Baltimore must be provided with information about the financial situations of their clients. This will mean providing full disclosure about every debt the client currently carries. It also means providing documents that confirm the amount of monthly income that the client generates. If the client happens to have any assets like stock options, real estate, or money in a checking account, information about those holdings should be included.
The goal is for the attorney to review the situation of the client and decide if there are grounds for seeking some type of bankruptcy protection. Assuming that is the case, the attorney and the client can focus on deciding what should happen next.
Settling on a Course of Action
Depending on the financial situation of the client, filing for a Chapter 7 or a Chapter 13 bankruptcy will be the most practical way to resolve the debt. Each form of bankruptcy comes with some qualifications that the client must meet. For those who qualify for a Chapter 7, the process typically entails committing to completing court-approved financial management classes, allowing the court to sell eligible assets to partially settle the debt and, finally, the dismissal of any balance that remains.
A Chapter 13 bankruptcy places the client under the care of the court while the debt is paid off using a schedule approved by that court. Payments are remitted to the court, which then distributes the proceeds to the creditors. In many cases, this approach makes it easier to pay off the debt at a pace that still allows the debtor to enjoy a reasonable quality of life.
There is no one solution that is right for every situation. The attorney can provide guidance in choosing the most practical approach and help the client get on the road to a brighter financial future.
