Salisbury Bankruptcy Attorney

Debt is a heavy burden, especially when struggling to make ends meet. If you’re financially overwhelmed, bankruptcy may be a viable option for relief. At Sanchez Garrison & Associates, our Salisbury bankruptcy attorneys are dedicated to helping individuals and families venture through this process smoothly.

With more than 50 years of combined experience, we have helped thousands of clients in the area successfully file for bankruptcy and gain a fresh start. Let us provide you with the compassionate support and strategic thinking you need to start over the right way.

Contact us today at (410) 406-7372 to book a consultation with our Salisbury bankruptcy lawyer.

When Is Bankruptcy a Good Idea?

Bankruptcy is not right for everyone, but it can be an effective solution for those facing serious debt. Our team can review your financial situation and help you determine if filing for bankruptcy is a good option for you.

Bankruptcy may be a good solution if you’re facing the following:

• Mounting medical bills
• Unpaid credit card debt
• Foreclosure
• Repossession
• Wage garnishment
• Debt collectors calling you regularly

If you’re facing any of these issues, our team can help you understand your options and determine if bankruptcy is your best solution.

Chapter 7 Bankruptcy vs. Chapter 13 Bankruptcy

Individuals typically file two types of bankruptcy: Chapter 7 and Chapter 13. Each has its own criteria and requirements, and our attorneys can assist you in determining the most suitable option for your financial situation.

Chapter 7 bankruptcy is typically the better option for those with little to no income and few assets. The process generally takes about four to six months.

To qualify for Chapter 7, you must first pass the bankruptcy means test. This test compares your average monthly income to the median income for a household of your size in Maryland. If your income is less than the median, you automatically qualify for Chapter 7. If your income is higher, you must complete the test to determine eligibility.

Chapter 7 is called “liquidation” bankruptcy because non-exempt assets are sold to pay off creditors. However, many people who file for Chapter 7 do not have any non-exempt assets, so they can keep all their property. Once the bankruptcy is discharged, most debts, including credit card debt, medical bills, and personal loans, are eliminated. However, certain debts, such as student loans, child support, and back taxes, cannot be discharged.

Chapter 13 bankruptcy is best for those with a steady income who want to keep their property. The process typically takes three to five years.

Under Chapter 13, your debts are reorganized into a more manageable repayment plan. You make one monthly payment to the bankruptcy trustee, who then distributes the funds to your creditors. The amount you pay each month is based on your income and expenses, and the length of the plan will depend on your income as well. Once you complete the repayment plan, the remaining unsecured debts are discharged.

Unlike Chapter 7, you don’t have to worry about losing any of your property in Chapter 13. You can keep your home and vehicle, and the bankruptcy can even stop foreclosure and repossession. If you’re behind on mortgage or car payments, they can be included in the repayment plan.