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Tax debt can be one of the most challenging types of debt to manage. For those struggling financially, filing for Chapter 13 bankruptcy may provide some relief.  Understanding whether Chapter 13 can discharge tax debts is necessary for making informed decisions under Maryland law. Types of tax debts eligible for discharge Not all tax debts are eligible for discharge under Chapter 13 bankruptcy. To qualify, the tax debt must be income tax owed to the federal or state government. You typically cannot discharge property taxes,

Chapter 7 bankruptcy can be a viable option for small business owners who face overwhelming debt. However, it’s important to understand the long-term consequences before proceeding. Impact on personal credit Chapter 7 bankruptcy remains on personal credit reports for up to 10 years. This can make it difficult for small business owners to secure personal loans, lines of credit, or even credit cards, which are often crucial for both personal and business needs. Loss of business assets For small business owners operating as sole proprietors,

Chapter 11 bankruptcy offers business owners the chance to reorganize their debts and continue operating. However, it can raise genuine questions about the future of commercial leases.  For entrepreneurs in Maryland, understanding how Chapter 11 bankruptcy impacts commercial leases is important for making informed decisions during the restructuring process. What happens when you file for Chapter 11 bankruptcy? When a business files for Chapter 11 bankruptcy, an automatic stay immediately goes into effect. This stay prevents creditors, including landlords, from taking any action to collect

Chapter 13 bankruptcy can provide a way for individuals to reorganize their debts and create a plan to repay them over three to five years. While this can be a lifeline for those struggling with debt, it can also lead to higher interest rates on future loans.  Several reasons contribute to this increase in interest rates. Understanding these key factors can help you navigate your financial recovery. Lower credit scores Chapter 13 bankruptcy affects credit scores significantly. When someone files for bankruptcy, it gets recorded

When debt becomes overwhelming, individuals and businesses can wonder which path to take to regain financial stability. Common options include filing for Chapter 7 bankruptcy and seeking debt settlement. While both promise debt relief, they differ in process, benefits and consequences. If you are seeking a way out of debt, how can knowing about Chapter 7 bankruptcy and debt settlement help you manage your financial situation? Chapter 7 bankruptcy Also called liquidation bankruptcy, Chapter 7 bankruptcy is a legal process that wipes out most unsecured