In Maryland, consumers have the option to file chapter 7 bankruptcy to eliminate overwhelming debts. The process allows the consumer to sell properties and assets to pay off these debts and prevent legal action by creditors. The following is what consumers need to know about chapter 7 bankruptcy in Greenbelt, MD.
Appraising Assets for the Claim
The court may require an official appraisal for all assets that are included in the claim. This ensures that these assets will generate the right amount of proceeds to pay off the debts. After all, if the consumer doesn’t possess the right amount of assets to achieve the primary objective, the claim isn’t feasible. The appraisals are presented to the court for approval.
Reviewing All Debts to Be Included in the Claim
The court must review all debts that will be included in the claim. This gives them a total valuation for the claim. It also determines who to contact to start the meeting of creditors. The creditors must provide an approval for their account. If they don’t approve the inclusion, the consumer will have to pay the debt off through alternative means.
The Management of the Liquidation Process
A trustee is assigned to the case. The trustee arranges the sale of all assets and collects the proceeds. They are responsible for distributing the funds to the creditors to settle the debts. They also provide the consumer with the exempted value available through chapter 7 bankruptcy in Greenbelt, MD.
Limitations and Benefits
Chapter 7 bankruptcy provides certain benefits and limitations. First, the consumer has the opportunity to become debt free in around six months. They can sell properties instead of submitting monthly payments. However, they cannot open any new lines of credit, and the automatic stay is no longer valid after six months.
In Maryland, consumers file for chapter 7 bankruptcy they can settle debts quickly. They can also prevent creditors from suing them in a short period of time. The consumers won’t face as extensive limitations as those who choose chapter 13.
