Find a Bankruptcy Lawyer in Aberdeen, Maryland

Find the right Bankruptcy attorney in Aberdeen, MD

In Aberdeen, 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 begin 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 heavily damaged credit rating for many years afterward), it should be viewed as an option of last resort.

Therefore, it is advisable to consult with an experienced Aberdeen, 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 Aberdeen bankruptcy attorney cannot be replaced.

Types of Bankruptcy in Aberdeen, Maryland

In Aberdeen, 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 Aberdeen, Maryland will be roughly the same as everywhere 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 funds 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 full 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 frequent bankruptcy scheme used by consumers in Aberdeen is Chapter 13 bankruptcy. In this system, debt is not discharged. Instead, it is restructured. This allows the debtor to have the terms of the agreements that gave rise to their debts in the first place thrown out, and replaced with new terms that call for a structured repayment plan, designed to allow the debtor to survive on whatever income they have, and allowing the creditors to get paid back eventually. Once a payment plan is authorized, creditors are not allowed to attempt to collect payment under the original agreements. Though Chapter 11 bankruptcy can be used by individuals, it is almost always used by businesses. Similar to Chapter 13, Chapter 11 involves restructuring of debts, rather than complete discharge. The debtor is required to come up with a restructuring plan that lays out how it plans to cut costs, streamline operations, and pay its debts. The plan must then be authorized by a vote of participating creditors.

While going through Chapter 11 bankruptcy, a business can continue operating, and its stock can continue to be traded.

How Can a Aberdeen Bankruptcy Lawyer Help?

One should not make the decision to file for bankruptcy in Aberdeen easily. Before making any such decision, it would be highly advisable to contact an experienced Aberdeen bankruptcy attorney.

Talk to a Bankruptcy & Finances Law Attorney now!

Life in Aberdeen

Aberdeen is a city located in Hartford County, Maryland. It has a population of around 14,000 people.

Aberdeen, Maryland is named after Aberdeen, Scotland.

Aberdeen, Maryland is home to the Aberdeen Proving Ground, which, starting in World War I, was used to by the army as a bomb-testing range. However, its use for that purpose is decreasing. A large portion of the former proving ground is being leased to commercial developers, which is expected to provide a major economic boon for the region.

The Aberdeen Proving Ground is still an active military base, despite the fact that some of it is being leased. An active military base, especially in a smaller community, is going to influence the culture of that community. Because service members from all over the country tend to be stationed on military bases, they bring their own unique character to the area where the base is located.

In addition to the obvious economic benefits that a large, constant consumer base creates, the diversity that such a facility brings in tends to have intangible benefits, as well.

The attorneys of Aberdeen, Maryland are experienced in working with a wide variety of clients, on a large number of different issues.

Whatever legal issue, you might have to deal with, it's probable that an Aberdeen, Maryland lawyer will be able to help.

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