The bankruptcy code in the United States gives Maryland residents several different options when they are considering bankruptcy. Depending on a person’s specific financial history and goals, a different form of bankruptcy may be appropriate for that person.
Television actress Nicole Eggert has recently filed for Chapter 13 bankruptcy. According to reports, the former Baywatch star would like to keep her home on the west coast. Reports say that Eggert has $1,070,400 in assets and over $807,000 in debt. According to the actress, after paying child care expenses of $3,000 a month, management fees of $2,000 and other debt she only has $795.76 a month to live on.
In most personal bankruptcies, people will need to choose between two types of bankruptcy – chapter 7 and chapter 13. In a Chapter 7 bankruptcy, assets are liquidated by the bankruptcy court and sold to pay the debt. Any remaining debt is discharged. In a Chapter 13 bankruptcy, a repayment plan is created. The repayment plan will run for three or five years. Any debt left at the end of the plan will likely be forgiven, or discharged. In a Chapter 13 bankruptcy, people are able to keep their personal property.
People who are considering bankruptcy should make sure they understand whether Chapter 13 bankruptcy is a good option for them. In this difficult economy, it is understandable that Maryland residents need debt relief. Financial challenges can easily arise after job loss, a medical crisis or a divorce. By turning to Chapter 13 bankruptcy with the help of a Laurel Maryland Chapter 13 lawyer, people can get a fresh financial start while keeping valuable personal assets including their home. By starting proceedings people can stop creditor harassment and create more manageable payments for their debt.