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Our country is in the grips of a relentless recession. The banks have abused their powers to the detriment of homeowners and credit card users. The housing bubble has burst, and many homes are encumbered with debt that far exceeds the home’s value. Further, banks are holding huge inventories of houses that have been foreclosed, or lay vacant and abandoned by the prior owner. Many homeowners struggle, wondering what to do because they owe tens of thousands of dollars more than the actual worth of their home. Not only is 10% of the population unemployed, but the period to gain reemployment keeps growing.
In economic times like this it is not surprising that many people are filing bankruptcy. More and more frequently people are faced with the choice to lose their home, or file bankruptcy. Others are faced with the choice of paying their electric bill or their credit card. Filing for bankruptcy is nothing to be ashamed of. With exorbitant interest rates, debt has a way of spiraling out of control before you have the opportunity to get it under control. It can happen to anyone, especially in today's economy. At the Germantown and Bethesda, Maryland, Law Offices of Alice Paré, we are dedicated to helping consumers find relief from debt.
When you are faced with the choice between paying for utilities and food or paying your credit card bills, it is time to seek help. Call 301-515-1190 or contact us online to schedule a complimentary telephone consultation to discuss your debt situation.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is also known as a liquidation bankruptcy or “discharge”. Chapter 7 is designed to free the individual of their consumer debt. Consumer debt is often credit card debt or personal loans. The debtor has the choice of maintaining their secured debt or surrendering the underlying asset. Chapter 7 is limited to people who pass the “means test”. The “means test” considers certain variable like income, reasonable and necessary expenses, the area of the country where the individual lives, etc. If the test concludes that the individual has more expenses than income, then it is likely that the debtor will qualify for a Chapter 7.
Chapter 13 Bankruptcy
Chapter 13 is commonly referred to a “reorganization”. The debtor enters into a payment plan that is designed to pay a portion, or all of the individual’s debt. A Chapter 13 may be preferable to a Chapter 7 in instances where the debtor wants to save his home from foreclosure, or strip the second mortgage from the house because the house has severely depreciated. A payment plan usually lasts between 3 to 5 years. At the end of your plan, any pre-petition debt that has not been paid back will be discharged.
Filing for Bankruptcy
Bankruptcy is a paper intensive process, creating a huge managerial and storage problem. We have implemented a "Green Discount" to help reduce this problem. We give clients a 10% discount off their attorney fees if they organize and reduce their bankruptcy documentation to PDF format and allow correspondence through email (rather than U.S. Postal). We will work with you to file for bankruptcy and stop creditors from harassing you. Contact us to discuss your situation and find out how we can help you get relief from debt.