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What happens next after filing for bankruptcy?

On Behalf of | Oct 17, 2023 | Bankruptcy Law

If you have made the decision to take decisive steps to deal with your debt once and for all, you will need to know what that could mean for your future. Filing for bankruptcy is a significant legal and financial choice, and while it could bring many benefits to your financial life, it is important to understand whether there could be any drawbacks. Having a reasonable expectation of bankruptcy and knowing what will happen after you file is critical to your success.

Understanding what to expect from the bankruptcy process and what you will need to do after you file is important as this can help you decide if this is the ideal option for you. Bankruptcy is not for every debt-burdened Maryland consumer, but in your situation, it could provide you with what you need to move forward and achieve a better financial future. If you are unsure of what is best, an assessment of your debt, income and other factors can help you make practical and beneficial decisions.

Before, during and after you file

Bankruptcy is an option for individuals who are unable to make their payments and maintain their financial obligations. Debt can accumulate quickly, often the result of unexpected situations such as a medical emergency, job loss and other factors that a consumer cannot control. Before you even file for bankruptcy, you will have to go through credit counseling. Other things you can expect from this process include the following:

  • You will have to provide the bankruptcy court with a list of your debts and whether they are secure or unsecure.
  • You will have to submit a bankruptcy plan to the court for approval, and you will have to meet the terms outlined in it.
  • After the completion of the bankruptcy process, there may be a discharge of some remaining debts, depending on which chapter you filed.

The right chapter of bankruptcy for you depends on the details of your individual financial situation and the types of debt you owe. Before you move forward, you may benefit from seeking a professional assessment of your finances and how to move forward. While bankruptcy may not be the ideal choice for you, it could be the most effective way to regain your financial security and lay the foundation for a strong future.