Bankruptcy in the state of Maryland is a complicated process involving many procedures and different types of paperwork. Maryland bankruptcy lawyers are definitely needed to help provide guidance and determine which laws and exemptions apply to your particular bankruptcy case. Though bankruptcy laws passed back in 2005 mean that anyone filing for bankruptcy must receive credit counseling at least six months prior to filing. This does not mean that the filer doesn't need Maryland bankruptcy lawyers to help them on their case. If through credit counseling, an individual had decided they have no other alternatives but to file for bankruptcy, they need Maryland bankruptcy lawyers to help decide what kind of personal bankruptcy they should file for. Chapter 7 bankruptcy, called straight bankruptcy by Maryland bankruptcy lawyers, involves a court-appointed trustee selling your non-exempt property to help repay your debts. Chapter 13 bankruptcy, however, reorganizes your debt into a three to five year repayment plan. A means test determines if you are eligible for chapter 7 bankruptcy. If you are ineligible for chapter 7 bankruptcy, chapter 13 becomes an option, though you do not need to be judged ineligible for chapter 7 to apply for chapter 13. In fact, so long as you are eligible for both, you can switch from chapter 7 to chapter 13 and vice versa at any time if you hadn't already switched once before. There are also bankruptcy exemptions that apply to anyone filing in the state of Maryland. There are federal supplemental bankruptcy exemptions that can be used in conjunction with the state ones. In some states, you can only substitute certain federal exemptions for their state ones. Still, not all exemptions will apply for all bankruptcy cases. A good bankruptcy lawyer will know which to use for your particular case to help get you your fresh start and peace of mind.
