Today, many major auto companies are filing or will be filing bankruptcy. Chrysler tried to avoid bankruptcy but even the auto giant could not avoid the inevitable. They had $6.9 billion in secured debt and they needed to clear those debts in order to restructure and possibly avoid having to file. However, it was clear that Chrysler would file Chapter 11 bankruptcy protection.
While they are in bankruptcy protection, Chrysler will be able to build a partnership with the Italian car maker Fiat Group SpA, which may help out their economic stability. In addition, the government will provide Chrysler with $8 billion to get the company through the bankruptcy in addition to the $4 billion in loans that Chrysler already received from the government. In exchange, the government will help appoint a new board of directors for the company. As a result, everyone is optimistic that Chrysler will come out of the bankruptcy more profitable and more competitive.
Just like Chrysler, individuals are filing chapter 7 and chapter 13 bankruptcy in order to restart their lives and turn a positive corner. A consultation with a Maryland or Washington DC bankruptcy attorney will give you the control in your life that you had before any economic issues started taking place.
When bankruptcy may be an option for you:
- You’re only paying minimum amounts on your bills
- In five years, you will still be in debt
- You are getting foreclosure notices on your mortgage or loans
- You have lost your job, gotten a divorce or gone through a costly illness and it is weighing heavily on your financial health
- Eliminate some of your debt
While filing bankruptcy will not eliminate all of your debt, a Washington DC or Maryland bankruptcy attorney can help you with some of the debt that is will make way for you to pay off the debt that a bankruptcy does not eliminate. For example, a bankruptcy will not eliminate alimony, child support, most recent back taxes, most student loans, government fines or penalties and many of the debts acquired very recently for luxury goods or cash advances. Yet, a bankruptcy will eliminate most if not all old credit card debt and medical bills to make way for you to make a fresh start in your life.
Types of bankruptcy:
- Chapter 7: Eliminates all debts except those that are not applicable as listed above. A Washington DC or Maryland Chapter 7 lawyer can help you start your way to financial freedom.
- Chapter 13: Sets up a repayment plan to pay back either all or a percentage of your debts over several years. A Maryland or Washington DC Chapter 13 lawyer can help you be debt free within several years.