A great number of people financially struggle consider bankruptcy, however many worry that chapter 7 or Chapt 13 bankruptcy filing will result in them losing their personal belongings. It is a question which is frequently asked of a Baltimore bankruptcy attorney or lawyer. However, some people are hesitant to even consult professional advice and continue to struggle in severe financial difficulty.
The process of bankruptcy may seem a little overwhelming but it was created to allow people to make a fresh financial start. If the process involved removing people’s personal belongings, it would actually leave them in a greater situation of hardship. This was the main reason behind the development of Chapter 7, which allows the person filing to retain their personal property but experience relief from creditors and stop further legal action such as repossessions and garnishment. This can be essential in allowing a person to financially recover, since many people would be unable to work if they lost their vehicle or tools of their trade. The exemption laws relating to bankruptcy allow the person filing a generous amount of personal property which can assist them to recover their financial footing.
In this type of economic climate, it is rare that an individual will have any belongings confiscated, except in the case of easily liquidated assets. The bankruptcy trustee will usually assess the costs involved in selling an item against the potential amount which could be recovered. Usually used belongings have virtually no resale value, which makes them not worth the time attempting to sell them.
If you imagine assessing your personal belongings, it is unlikely that you could sell them personally to recover what you spent on them. You would consider yourself lucky if you could recover cents on the dollar. This is usually what occurs with a bankruptcy trustee. It can be counterproductive to confiscate these belongings as they hold very little value.
Every financial situation can vary, but it may even be possible to keep your home and car, if you are filing for bankruptcy with a heavy level of unsecured debt such as credit card debt or medical bills. In these cases, eliminating this unsecured debt will allow the individual to honor their house payment commitments and retain ownership of their home.
It is important to not allow financial difficulties to spiral out of control. Problems will usually occur when people have months of missed payments and have no way to catch up. It is far better to consult professional advice and take action to allow you to financially recover. There may be a solution for you, even if Chapter 7 is not applicable. A Maryland bankruptcy lawyer will be able to discuss the details of your particular circumstances and provide advice as to your best course of action. They will also be able to assist you to retain your belongings and allow you the fresh financial start you have been seeking.
If you are struggling with your finances and are considering filing for bankruptcy, contact a Maryland bankruptcy lawyer today.