What You Need to Know About Bankruptcy Attorney in Greenbelt, MD
Bankruptcy in Greenbelt, MD is a term that is often used interchangeably with insolvency. Technically, bankruptcy is a legal status of an individual or organization that cannot repay debts to creditors. Insolvency, on the other hand, is a broader term that may include bankruptcy as one of its consequences. To know more, call The Phillips Law Offices in Greenbelt, MD.
A Bankruptcy Attorney Greenbelt, helps individuals and businesses file for bankruptcy. The process can be very confusing and overwhelming, but with the help of a bankruptcy attorney, the process can be much smoother. There are several types of bankruptcies, but the two most common are Chapter 7 and Chapter 13.
Chapter 7 bankruptcy is also known as liquidation bankruptcy. This is the type of bankruptcy that is most often thought of when people think of bankruptcy. In a Chapter 7 bankruptcy, the court appoints a trustee who is responsible for taking control of the debtor's assets and liquidating them. The proceeds from the liquidation are then used to pay off creditors. Chapter 13 bankruptcy is also known as a reorganization bankruptcy. In a Chapter 13 bankruptcy, the debtor is allowed to keep their assets and is put on a repayment plan. The repayment plan lasts for three to five years, and at the end of the repayment plan, any remaining debts are discharged.
The bankruptcy process begins with the filing of a petition. The petition can be filed by the debtor or by the debtor's Greenbelt Bankruptcy Lawyer. Once the petition is filed, the court will issue an automatic stay. The automatic stay prevents creditors from taking any collection action against the debtor. After the petition is filed, the debtor will be required to attend a meeting of creditors. The meeting of creditors is also known as a 341 hearing. At the meeting of creditors, the debtor will be questioned by the trustee and creditors about their assets and liabilities.
After the meeting of creditors, the debtor will be required to attend a debtor education course. The debtor education course is a mandatory class that is designed to educate the debtor about personal finances and money management. Once the debtor has completed the debtor education course, the court will grant the debtor a discharge. A discharge is a court order that releases the debtor from the obligation to repay certain debts. Bankruptcy can be a very complex process, but with the help of a Bankruptcy Lawyer Greenbelt, the process can be much smoother. If you are considering bankruptcy, contact a Greenbelt Bankruptcy Attorney, to discuss your options. Now, contact The Phillips Law Offices for your desire to solve the problem of bankruptcy. Visit our Bankruptcy Law Firm Greenbelt!
The Phillips Law Offices
6301 Ivy Ln #700-A, Greenbelt, MD 20770
(301) 494-4250