Why You Must File For Bankruptcy at the Right Time in MD

Filing for bankruptcy is a tough choice. However, there may come a time in the life of a person wherein he/she is unable to pay their debts. In such a situation, you mustn’t wait and watch anymore. You must act.

Bankruptcy is the last resort to bring your dying finances back to life.

Although bankruptcy severely affects your credit score, it can save you from the malicious debt trap. It protects you from hounding creditors. You get a chance to start all over again with lessons learnt.

Time of filing

It’s important to file at the right time. If you file earlier, you might lose a certain property or vehicle, which you could have kept if you had filed later.

So, it’s important to consult Prince George’s County bankruptcy attorney to get sound advice on how and when to file for bankruptcy. The lawyer will also advice you on whether filing for bankruptcy is the right choice for you.

Saving your tax refund

Suppose you are expecting an amount of $5000 as tax refund within a few months. If you file for bankruptcy now, you might have to surrender this amount to the court-appointed trustee. You would lose this money.

In this case, your lawyer may advise you to wait a while. Let the tax refund arrive. You can spend this money on necessities. Once you do this, now you can file for bankruptcy. So, you saved the tax refund money, used it for your own needs, and then filed.

Saving your car

Suppose you have a car worth $7,000. As per your state bankruptcy laws, a car worth $6000 is exempt. If you file for bankruptcy now, you might lose your car. The trustee would sell it and pay your creditors.

If you wait till your car’s value depreciates or drops to the exempt value, you can keep the car.

Anticipating new debts

Suppose you have a forthcoming major medical expense. You must undergo a surgery in the coming months. This might be expensive and put you under debt . If you file for bankruptcy now, the new debt won’t be wiped off. Bankruptcy wipes off only the existing debts till the date of filing, not the future debts.

So, if you wait till the surgery is done and then file for bankruptcy, this new debt will become an existing one and will be wiped off.

These are some of the intelligent ways you can protect your assets and wipe your debts while filing for bankruptcy at the right time. Prince George’s County family law lawyer attorney can help you decide the right time for filing. He/she will also guide you in the choice of Chapters.

Do not file for bankruptcy under a whim and fancy. Decide after considering all the factors. Consult a lawyer specializing in bankruptcy. Then file for it. Remember, bankruptcy goes into your public record. It stays for years in your credit record too.

Bankruptcy is not always the best option. However, for some, it could be the only best option.

Resource Box:

Rnnlawmd.com is a reliable place to find competent Prince George’s County bankruptcy attorney. Visit the site and schedule consultation with Prince George’s County family law lawyer attorney .