Practical Advice For Bankruptcy Issues

Many people are uncomfortable discussing bankruptcy law. But for many, who have suffered a personal or business calamity, bankruptcy may be their only hope. And by providing a fresh start, bankruptcy can allow you to recover your financial health and move forward toward a brighter future.

At Melehy & Associates LLC, we understand that most people looking to file a bankruptcy have arrived there due to unfortunate circumstance. Their economic crisis are often the result of health care problems, serious accidents, job loss or divorce. Frequently, more than one of these events will combine to create a perfect storm of financial disaster. Our attorneys can explain your legal options and how bankruptcy can help.

Which Chapter Should You File?

Depending on you particular situation, you may file different types of bankruptcies under the code:

Chapter 7

The most numerous type are Chapter 7, which is also known as "liquidation," and may be filed by individuals or businesses. In this bankruptcy, you may be able to eliminate your debts in as little as six months and obtain a fresh start with your finances.

Chapter 13

A Chapter 13, also know as reorganization for individuals or the wage earner plan, allows an individual to restructure their debts, sometimes lowering interest payments or garnishment amounts, obtaining more time to repay a loan and enabling you to pay mortgage arrears during the life of the plan.

The centerpiece of a Chapter 13 is the repayment plan, which functions like a budget plan allocating your income to your debts. The plan typically lasts three to five years and can help homeowners prevent a foreclosure.

While student loans remain difficult to discharge in bankruptcy, a Chapter 13 can reduce garnishment rates and eliminate many unsecured debts, which often frees up additional income to pay toward student loans and make meaningful progress to paying off those loans.

Chapter 11

Chapter 11 is used by businesses, such as corporations and LLCs that cannot file a Chapter 13, and allows them to reorganize their finances and their business structures. These bankruptcies can be very complex and if your business is in dire financial straits, we can help by providing experienced business bankruptcy counsel.

Contact Our Firm

We can provide experienced help for your Chapter 7, 13 and 11 bankruptcy. Call our lawyers at our Silver Spring, Maryland, office at 301-587-6364 or use our online form.