Find a Bankruptcy Lawyer in Bethesda, Maryland
In Bethesda, Maryland, bankruptcy is a legal proceeding in which a person or business has some or all of their debts legally excused, when they are unable to pay them. This hopefully allows them to start over with a clean slate and move on, after having learned to better manage their use of credit in the process. However, bankruptcy should not be treated as a way to avoid debt that one simply doesn't feel like paying. It is meant to be a safety net for people or businesses who are truly unable to pay off their debts. Because bankruptcy is not without negative consequences (such as a severely damaged credit rating for many years afterward), it should be viewed as an option of last resort.
Therefore, it is prudent to consult with an experienced Bethesda, Maryland bankruptcy attorney, who can advise you of the costs and benefits of bankruptcy. Because the decision to file for bankruptcy depends very heavily on the facts of each individual case, the advice of a Bethesda bankruptcy attorney cannot be substituted.
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Types of Bankruptcy in Bethesda, Maryland
In Bethesda, Maryland, 3 types of bankruptcy procedures are in common use: Chapter 7, Chapter 11, and Chapter 13. Being governed by federal law, the procedures involved in filing for bankruptcy in Bethesda, Maryland wil be about the same as anywhere else in America. Chapter 7 bankruptcy, or "liquidation," requires the debtor to sell some of his or her property to the highest bidder, and using the proceeds from the sale to pay down as much debt as possible. Once the sale is complete, all dischargeable debt is deemed paid in full, whether or not the sale was able to raise the entire amount owed. You should note that some property (usually the types of property deemed essential) is fully or partially exempt from liquidation, meaning that the debtor gets to keep it. This includes houses, cars, and retirement accounts, among others. Some types of debts, however, cannot be discharged in bankruptcy, including taxes, child support, and student loans.
The other form of bankruptcy most commonly used in Bethesda is Chapter 13. It allows a person to pay off their debt over a longer period of time, often consolidating it into one periodic payment. In this system, the amount of money the debtor owes is not actually reduced, but the payment of the debt is made far more manageable. This gives the debtor some breathing room, allowing him to continue to earn a living while gradually paying down his debts, and gives some security to creditors that they will eventually collect all or most of what they're owed. Chapter 11 bankruptcy is almost exclusively used by businesses, but there is nothing that legally prevents it from being used by individuals, and its use by individuals is very rare. Chapter 11 bankruptcy requires the debtor to come up with a restructuring plan - telling the court how they propose to cut costs, improve their operations, and pay down their debts. The plan has to be approved by a majority vote of participating creditors.
A major advantage of Chapter 11 bankruptcy is that businesses can continue their operations while going through the process. Also, they can continue to buy and sell their stock.
How Can a Bethesda Bankruptcy Lawyer Help?
Filing for bankruptcy in Bethesda is a very important decision, and should not be made lightly. Before filing, one should consult with a good Bethesda bankruptcy attorney for advice.
There are 34 Bankruptcy, Banking and Credit cases posted in Bethesda
Cases Posted to LegalMatch listed by ZIP Code:Bankruptcy Attorneys in the Largest MD Cities
Life in Bethesda
Bethesda is located in Montgomery County, Maryland. It is northwest of Washington D.C. The city was named after a local church--the Bethesda Meeting House. It is known as one of Maryland's most affluent and highly educated communities. In facts, Forbes Magazine listed it first in "America's Most Educated Small Towns."Two popular sites include The National Institute of Health and the National Naval Medical Center Other attractions include Capital Crescent Trail, Burning Tree Club, and Bethesda Avenue.
Large corporations that have a presence in Bethesda include American Capital, AREVA, Inc., Cambridge Information Group, Coventry Health Care, GetWellNetwork, HMSHost, Honest Tea, Host Hotels & Resorts, Iridium Satellite LLC, Lockheed Martin, Marriott International, Ritz Carlton, and the United States Enrichment Corporation. Although not large, the legal industry does have a presence in Bethesda as well because the city is home to attorneys who practice in various fields of law.
