Bankruptcy lawyers practice a specific type of law.  In 2005, United States Congress amended the prior bankruptcy code set forth in 1978.  The amendment decided that bankruptcy lawyers would be considered debt relief agencies. 

Debt relief agencies and filing bankruptcy:

So, what does a debt relief agency do and what can they do for people living in PG County, Maryland?  A Bankruptcy attorney title can be misleading because bankruptcy attorneys do not just file a petition to get rid of debt, or stop foreclosures on Maryland homes.  Bankruptcy attorneys also negotiate consumer or business debts with creditors.   

Types of Debt that can be resolved

The type of debts that are often negotiated by a debt relief agency are both secured by collateral and also unsecured, like credit card debts.  Sometimes people only have 1 or 2 cards that became too large to deal with.  A person can call a debt relief agency/ bankruptcy attorney and have that debt workout with the creditor or either a lessor amount owed or workout a payment plan that a person can afford without the need to file a bankruptcy case. 

Mortgage payments past due is another type of debt a debt relief agency can help with.  A person can call a bankruptcy lawyer and have them help negotiate a loan modification or other types of relief offered by the mortgage company.  Again, this relief of the debt issue is without the need to file a bankruptcy case. 

Debt Relief is more than filing for bankruptcy

A debt relief agency is designed to help get relief from the pursuit of debts owed by collection agencies, debts that are burdensome as they are and need to be reduced to help a person deal with the debt or debts that simply need to be discharged.  Bankruptcy lawyers do all of those items noted. 

Bankruptcy lawyers can provide debt relief also through the actual filing of a bankruptcy case.  Most common filings are Chapter 7 and Chapter 13 cases.  Both types of cases relieve debt to allow people to clean up their finances, clean up their credit reports and begin a new credit health. 

A common misstatement made by debt relief agencies or bankruptcy is that it just a way to get “rid of debts without consequences.”  That statement is clearly not true.  A debt relief agency/ bankruptcy lawyer’s main purpose is to help a consumer resolve debts so to get the relief that each individual needs, whether it is a reduced payment; a different payment installment or a complete discharge of debt.  Each person is different and each person needs different type of relief.  A debt relief agency is designed to help every situation.

For more information or to speak to a debt relief attorney in Greenbelt Maryland, contact, Attorney Jill Phillips of the Phillips Law Offices at (301) 494-4250.