No Judgment. Just Help.

What happens when you declare bankruptcy

On Behalf of | Aug 8, 2022 | Bankruptcy |

Filing for bankruptcy in Maryland can be a complex and emotional process. There are many myths about the process that you can safely sidestep. One of them is the prospect of being financially ruined for the rest of your life. This is almost never the case. With a bit of preparation and effort, your bankruptcy can be the start of a whole new beginning.

The true legal meaning of a bankruptcy

Bankruptcy is the process by which you can see some of your existing debts discharged. It gives you the option of starting over with a clean slate. However, the path to getting there can be rocky. Filing for bankruptcy is an act that will stay on your record for several years. This may make applying for new credit very difficult.

The main legal and financial advantage that comes with declaring bankruptcy is the respite you can get from your creditors. Once you have declared, an automatic stay is put in place. This will keep collection attempts and certain kinds of lawsuits at bay. It can also help to protect you from garnishment, except in the case of child support.

Bankruptcy gives you access to certain rights

There are certain very crucial bankruptcy rights that you need to be aware of. The main one is that your creditors are prohibited from contacting you to demand money. They are also barred from getting in touch with members of your family if they fail to reach you.

The main thing that bankruptcy can give you is peace of mind. You can use the process to regain control over your finances. It can also be a learning experience that lets you know exactly what never to do again in the future. You will hopefully learn to be more responsible in the future.