What you need to Know about Bankruptcy Exemption in Maryland
Bankruptcy is a process that allows you to reduce or eliminate some portion of your debts. As
soon as a person files for bankruptcy, he or she gets protection from the federal bankruptcy
laws. This stops creditors from carrying out any further activity designed for collection. After
the bankruptcy procedure is completed, the person filing for bankruptcy is no longer required
to pay any more of the debts that he or she owes to the creditors.
There are a great many misconceptions about bankruptcy. Most people think that only the
poor and the middle class file for bankruptcy. Nothing could be further from the Truth.
Bankruptcy affects people from all walks of life. A lot of wealthy people file for bankruptcy.
As in every state, Maryland allows for some items of property that are exempt from being
seized by creditors and bankruptcy trustees. Under Chapter 7 of the Maryland bankruptcy
law, all or most of the property can be protected from creditors. Under Chapter 13 of the
Bankruptcy Laws as well, a large portion of the property can be saved from being lost to the
creditors. Under Maryland bankruptcy laws, up to $5000 worth of property can be saved,
along with $1000 worth of household goods. This is only a general figure and for more
information, it is best to get in touch with a bankruptcy lawyer to find out exactly which
portions of the property can be saved under the bankruptcy claims. Under bankruptcy laws, it
is important to disclose all debts in the bankruptcy petition, even if the debtor is planning to
pay off most of the debts himself or herself.
However, in order that Bankruptcy Maryland laws are applicable to your claim, you must have
resided in the state for a minimum of two years. If you have not lived in the state for two years
preceding the filing for bankruptcy, you will come under the laws of the state where you were
residing for most of the 6-month period before the two years.
A lot of people worry about whether they can get avail of fresh credit after bankruptcy. Most
lawyers will tell you that getting credit is not impossibility after bankruptcy. In fact, a lot of
people who file for bankruptcy apply for some sort of credit soon after bankruptcy. Initially
interests on loans may be high but later, these will be eased out. Getting loans will rarely be a
problem. The one thing that everyone filing for bankruptcy needs to keep in mind is that one
must rethink financial strategy. The same financial strategy that led to bankruptcy must not
be carried out under any cost.
If this reframing of financial strategy can be done successfully, the problem of getting credit
again should not be a problem. Bankruptcy can become the closing of a chapter that should
not affect the remainder of one’s life in any circumstance. This is the key to a successful
beginning after bankruptcy.
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