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What Happens After Bankruptcy in Rockville, Maryland

Be on the road to financial freedom with the knowledge of what to do after a bankruptcy

Filing for bankruptcy can be a difficult decision, but it can also be a necessary step toward financial freedom. While it may alleviate you from overwhelming debt, many individuals are left wondering what happens after bankruptcy in Rockville, Maryland.

After bankruptcy, individuals can expect to experience various effects on their credit score, financial situation, and overall well-being. Depending on the type of bankruptcy filed, some debts may be discharged entirely, while others may need to be paid back through a payment plan.

Don’t face the challenges of post-bankruptcy recovery alone – contact our knowledgeable attorneys today at Kurland Law Group and take the first step toward financial stability.


Why Do You Need a Lawyer After Bankruptcy in Rockville, Maryland?

While hiring an attorney after filing for bankruptcy is not legally required, it can be highly beneficial for individuals seeking to navigate the complex legal and financial landscape after bankruptcy. Here are some reasons why hiring an attorney after bankruptcy in Rockland, Maryland, can be helpful:

  • Expert legal guidance: An attorney with experience in bankruptcy law can provide knowledgeable instructions throughout the post-bankruptcy process, including understanding dischargeable and non-dischargeable debts, payment plans, and other financial considerations.
  • Protection against creditors: Creditors may still attempt to collect debts after bankruptcy, and an attorney can guide how to handle these situations and protect your rights.
  • Assistance with credit repair: An attorney can help you understand your credit report, address any errors or inaccuracies, and provide guidance on rebuilding your credit over time.
  • Guidance on long-term financial planning: An attorney can guide you on creating a budget, setting financial goals, and developing a long-term plan for financial stability after bankruptcy.

Hiring an attorney with experience in after-bankruptcy services can provide invaluable guidance and support to individuals seeking to rebuild their financial stability and achieve long-term success.


Selecting the Appropriate Bankruptcy Chapter in Maryland

Many individuals choose between Chapter 7 or Chapter 13 when filing for bankruptcy in Maryland. If you are unfamiliar with the differences between the two, don’t worry because you are not alone. 

Chapter 7 is the quicker and less expensive option suitable for those who only own essential property. However, if you own non-essential luxury items or are behind on mortgage or car payments, you could lose them if you file under Chapter 7. 

On the other hand, Chapter 13 requires repayment of some or all of the debt owed to creditors through a three- to five-year payment plan. While it is more expensive, Chapter 13 provides benefits like keeping all of your property, saving your home from foreclosure or a car from repossession, and forcing creditors into a payment plan. It’s important to note that the principles discussed only apply to consumers and not small businesses.

If you have recently filed for bankruptcy or are considering doing so, it is essential to seek the advice and guidance of a competent bankruptcy attorney. A skilled attorney can help you understand the differences between Chapter 7 and Chapter 13 bankruptcies and determine which option suits your unique financial situation. 

With their help, you can make informed decisions about your financial future and take the necessary steps to achieve a fresh start. If you want to ensure that you have a clear understanding of the bankruptcy process and your options, don’t hesitate to contact an after-bankruptcy attorney today.


What Happens After Bankruptcy?

After filing for bankruptcy, individuals can expect to experience several effects on their financial situation, credit score, and overall well-being. Here are some of the things that can happen after bankruptcy:

  • Discharged debts: Some debts may be discharged entirely, depending on the bankruptcy type filed. That means that the individual is no longer responsible for repaying those debts.
  • Non-discharged debts: Some debts, such as student loans or taxes owed, may not be discharged through bankruptcy and will still need to be repaid through a payment plan or other means.
  • Credit score impact: Bankruptcy can significantly impact an individual’s credit score, and bankruptcy filing can remain on a credit report for up to 10 years. This can make it more difficult to obtain loans, credit cards, or mortgages in the future.
  • Financial planning: After bankruptcy, it’s crucial to create a budget, set financial goals, and develop a long-term plan for financial stability. Seeking the guidance of a financial professional or credit counselor can be helpful in this regard.
  • Credit repair: With careful financial planning and responsible credit use, individuals can begin to rebuild their credit over time. It is valuable to stay on top of credit reports and scores, address any errors or inaccuracies, and work to improve credit over time.


The Effects of Bankruptcy on Credit Scores

Filing for bankruptcy can impact your credit score and remain on your credit report and public records for a certain period. The time it stays on your credit report depends on the type of bankruptcy filed – Chapter 7 for ten years and Chapter 13 for seven years. 

However, the degree to which bankruptcy affects your credit score varies based on your financial situation before filing. There are ways to rebuild your credit score, such as:

  • keeping up with bill payments;
  • obtaining a new or secured credit card; and
  • refraining from taking on more debt than you can manage.

It’s worth considering that bankruptcy may eventually help your credit rather than harm it, particularly if you’re struggling to manage debt and make payments.


Managing Financial Situations After Bankruptcy

After going through bankruptcy, families may have more disposable income but often lack knowledge on managing it properly, leading them to spend it unwisely. It’s essential to learn how to budget and save effectively to prevent this from happening. Taking several steps can make this process more manageable and enjoyable, such as creating a budget and a savings account.

Creating or reassessing your budget after filing for bankruptcy is a great idea, even if you didn’t have one before. Your new budget will no longer include the debt discharged in your bankruptcy, allowing you to plan for your financial future.

You can divide your expenses into fixed, variable, and irregular categories to better understand and manage them. Fixed expenses occur regularly, while variable expenses vary monthly, and irregular expenses are unpredictable. It is helpful to track these expenses on a spreadsheet to stay organized.


Call Our Rockland, Maryland, Attorneys with Advanced Knowledge in Post-Bankruptcy Now!

Are you struggling to rebuild your financial stability after bankruptcy? Are you feeling overwhelmed and unsure of where to turn? The Kurland Law Group is here to help you navigate the complex and often stressful process of post-bankruptcy recovery. 

Our experienced team understands your challenges and is committed to providing you with the personalized guidance and support you need to move forward confidently.

We offer various services to address our clients’ pain points, including credit counseling, debt management, and bankruptcy discharge planning. We aim to help you develop a comprehensive plan that puts you on the path to long-term financial success. We understand that the road ahead may not be easy, but with our help, you can overcome your financial challenges and emerge stronger than ever.

Don’t let the stress of what happens after bankruptcy in Rockville, Maryland, hold you back any longer. Contact the Kurland Law Group today to schedule a free case evaluation and take the first step toward a brighter financial future. Let us help you turn your financial setback into a comeback!

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