When one has no choice but to file for bankruptcy, it is important to learn a little more about it before diving headfirst into the process. Better yet, it is always a good idea to hire a bankruptcy lawyer, whether you’re in Baltimore or anywhere else, so you don’t feel like a fish out of the water once you do start the filing process. Now, you may have questions about bankruptcy, but the most important one that we are going to answer today is: “Are bankruptcy laws the same in every state?”.
The shortest answer to that question is no, bankruptcy laws do not vary from state to state, however, each state has different median income amounts that you need to meet to qualify for filing bankruptcy, state laws affecting bankruptcy differ and interpretations of the bankruptcy laws may differ dramatically. The type of properties you have will also influence the exemptions you qualify for. In Maryland, for example, you need to pass a “means test” to qualify for a Chapter 7 Bankruptcy. This means your income should be less than the median for Maryland. Maryland’s exemption list includes motor vehicles, personal property, and more. With this, hiring a bankruptcy lawyer in Baltimore, Maryland is all the more important.
So what are the bankruptcy laws?
All debtors seeking to file bankruptcy must go through the “means test” to determine the debtor’s household income. Although this law is the same for every state, the median amount varies from state to state.
Having a higher household income than that of the median amount disqualifies you for Chapter 7, but you may qualify for Chapter 13 instead. This law is also the same for every state. The difference is that each state may have different options in which creditors can pursue debtors who are not in bankruptcy. If you want to prepare for how creditors can go after your debts, consult with a bankruptcy lawyer as they can also advise you on how bankruptcy can stop some of their collection methods.
Hiring a lawyer is a good idea if you are filing for bankruptcy and have other properties in more than one state. Also, if you have recently moved to a different state and you are declaring bankruptcy.
If you are thinking about filing for bankruptcy, hire Attorney Richard Hackerman as your bankruptcy lawyer in Baltimore, Maryland. Not only is he knowledgeable about bankruptcy laws, but he can also help you prepare the right documents so the filing process can proceed smoothly. He can also give you sound advice on which type of bankruptcy you should file. Call us today at 410-243-8800 or 888-243-5500 to schedule an appointment.