Clarksville, MD Bankruptcy Attorneys

Dedicated Attorneys Helping Individuals and Businesses Secure Debt Relief in Clarksville, Maryland

The need to seek debt relief through bankruptcy can happen to anyone. If you are making monthly payments towards your debts, missing just one or two payments can lead to interest charges, followed by demands for higher payments in the coming months. This can cause you to miss other payments, leading to a cycle of debt and increased financial strain. If the amount of the monthly payments you are expected to make exceeds your disposable income, you are unlikely to ever break free without taking legal action. Fortunately, filing for bankruptcy can help you break the cycle of debt and start again with a clean slate.

Law Offices of Marc A. Ominsky, LLC has more than 50 years of combined experience in bankruptcy law. Our hands-on Clarksville, MD bankruptcy attorneys can help you in real time. We are accessible and responsive, so your questions and concerns will always be addressed in a timely manner. From choosing the right type of bankruptcy to file to protecting your assets from liquidation, our attorneys will guide you through the entire process. We are well-prepared to address any concerns you may have, like protecting a security clearance or timing your bankruptcy around a divorce or family law case.

Choosing Between Chapter 7 and Chapter 13 Bankruptcy

One of the first decisions you will need to make is what type of bankruptcy to file. There are benefits and drawbacks to each type of bankruptcy. In a Chapter 7 bankruptcy, some of your assets may be liquidated to help pay back your creditors, but the rest of your debt will be erased. If you choose Chapter 13 bankruptcy, you will have to keep making a single, manageable monthly payment for three to five years before the rest of your debt can be cleared, but this option will allow you to avoid the liquidation of your assets.

Some factors your attorney may discuss with you include:

• The Size of Your Estate: If you have non-exempt assets you want to protect from liquidation, Chapter 13 may be the better choice. People or couples with smaller estates often find that all or nearly all of their assets are exempt from liquidation, making Chapter 7 a more attractive option. However, you must pass a means test in order to file under Chapter 7.
• Your Degree of Financial Stability: Chapter 13 bankruptcy is only effective if you will be able to keep up with a repayment plan. Your monthly payment will be calculated to approximately equal your disposable income. If you work sporadically, have a highly variable income, or lack good job security, it may be better to use Chapter 7 and avoid a repayment plan.
• Whether You Are Facing Foreclosure: If your primary goal in filing for bankruptcy is to save your home from foreclosure, Chapter 13 is likely your best option. Your repayment plan will allow you to catch up on your mortgage. Chapter 7 bankruptcy would stop a foreclosure action while the bankruptcy is pending, but you could still lose your home if you cannot reach an agreement with your mortgage lender to reaffirm the debt.
• The Types of Debts You Have: Some debts cannot be discharged through Chapter 7 bankruptcy, but they could be included in a Chapter 13 repayment plan. If you have certain types of tax debts or student loan debt, your debt may be more effectively addressed in a Chapter 13 bankruptcy.
• Rebuilding Your Credit: It is normally easier to rebuild credit after a Chapter 13 bankruptcy, because it shows that you have made a commitment to debt repayment.
• Whether Your Business Is Closing: If you filing for business bankruptcy because you are closing down your business, you may file for Chapter 7 and eliminate your debts after business assets are liquidated. If you want to avoid closing your business, Chapter 11 bankruptcy can help you address your debts and continue operating.

Contact Our Clarksville, MD Bankruptcy Attorneys

Law Offices of Marc A. Ominsky, LLC is committed to helping businesses and individuals get the relief from debt they need. Our experienced Clarksville bankruptcy lawyers will work with you to discharge as much of your debt as possible. Contact us at 443-539-8712 for a complimentary consultation.