Burtonsville Chapter 7 Bankruptcy Lawyer

Bankruptcy Attorney for Chapter 7 Debt Relief in Burtonsville, MD

Financial struggles can often feel overwhelming for a family, especially when debts continue to pile up without any clear path to relief. If you are in this situation, Chapter 7 bankruptcy can provide you with the opportunity for a fresh start. By filing for bankruptcy and eliminating your debts, you can regain financial independence. The Law Office of Donald L. Bell is here to guide you through the process of filing for bankruptcy. We will work with you to help you achieve a debt-free future.

How Chapter 7 Bankruptcy Can Provide a Fresh Start

If you are facing significant debts that you cannot repay, Chapter 7 bankruptcy can eliminate some or all of your debts and help you maintain financial stability. Unlike Chapter 13 bankruptcy, which will establish a repayment plan to pay back some debts over time, Chapter 7 can eliminate most debts quickly. This will give you the chance to rebuild your financial life without the pressure of mounting bills.

When to Choose Chapter 7 Bankruptcy

Bankruptcy is a major decision, and it is important to understand when this option may be appropriate. Some key factors to consider include:

• Income Limitations: Chapter 7 bankruptcy is available to people who pass a means test that considers their income, expenses, and ability to repay debts. If your income is below the median income for your household size in Maryland, you will automatically be eligible to file for Chapter 7. If your income is above this threshold, you may qualify for Chapter 7 if you have limited disposable income that could be put toward repaying your debts.
• Unmanageable Debt: If you have significant unsecured debts and are unable to make minimum payments, Chapter 7 bankruptcy may be the best option to eliminate these financial burdens.
• No Ability to Repay: Chapter 7 is typically chosen by people who do not have sufficient income or assets to repay their debts. If you have little or no disposable income after covering your family's basic living expenses, you will most likely benefit from seeking debt relief.
• Threat of Collection Actions: If you are facing harassment or other aggressive actions by creditors, filing for bankruptcy can put an immediate stop to these actions. The automatic stay that will take effect after you file your bankruptcy petition will prevent creditors from continuing their collection efforts while your case is pending.

The Law Office of Donald L. Bell will help you understand your options and guide you through the bankruptcy process, ensuring that your rights are protected and that you can take the proper steps to receive relief and embark on a fresh start.

Debts That Can Be Eliminated Through Chapter 7 Bankruptcy

When you file for Chapter 7, you will be able to discharge or eliminate many types of debts, providing your family with a clean slate. The debts that you may be able to address include:

• Credit Card Debt: Purchases made using credit cards can lead to mounting debt due to high interest rates. If you have significant credit card debt that you cannot repay, filing for bankruptcy can eliminate this financial burden.
• Medical Bills: Unexpected expenses related to healthcare, medical treatment, or emergencies can add up quickly, even if you have health insurance coverage. You can use bankruptcy to eliminate unpaid medical bills, allowing you to focus on your health and well-being without the stress of ongoing medical costs.
• Personal Loans: Unsecured loans from banks or other providers, including payday loans and other types of high-interest loans, can be discharged through bankruptcy. This can provide substantial relief when you have had to take out loans to cover living expenses or other needs but are unable to repay these obligations.
• Utility Bills: If you have fallen behind on bills for services such as electricity, gas, or water, bankruptcy can discharge these debts, preventing disconnections and helping you get back on track with your household expenses.
• Lease and Rental Obligations: If you owe money on a residential lease or other rental agreement, Chapter 7 bankruptcy can discharge these obligations, giving you the opportunity to move forward without owing back rent or penalties.

Debts That Cannot Be Discharged

• Child Support and Spousal Support: If you have been ordered to pay support to your ex-spouse or your child's other parent, these obligations cannot be eliminated through bankruptcy. You must continue making these payments after your bankruptcy case is completed, and you will be required to pay any past-due amounts, but eliminating other debts can help ensure that you will be able to meet your ongoing obligations.
• Tax Debts: In general, tax obligations related to tax returns filed within the past three years cannot be discharged through bankruptcy. However, you may be able to eliminate older tax debts in some situations.
• Student Loans: In most cases, student loans cannot be discharged in bankruptcy unless you can prove that the requirement to repay these loans would cause you to suffer undue hardship.
• Court-Ordered Fines and Restitution: Debts resulting from criminal activity, including fines, restitution, or penalties for offenses such as DUI, generally cannot be discharged through bankruptcy.

You may also need to address secured debts, such as a home mortgage or auto loans. While you can include secured debts in a Chapter 7 bankruptcy case and take steps to discharge your obligation to repay these debts, this will most likely result in the loss of the collateral used to secure a debt. You could face the repossession of your vehicle or foreclosure on your home.

Benefits You Can Receive by Filing for Chapter 7 Bankruptcy

• Fast Debt Relief: The Chapter 7 bankruptcy process typically takes six months or less, and once it is complete, your unsecured debts will be eliminated, giving you a clean financial slate.
• Protecting Essential Assets: While some Chapter 7 cases may require the liquidation of assets, most people are able to complete the bankruptcy process while minimizing the loss of money or property. Bankruptcy exemptions allow you to keep essential property, such as personal belongings, tools of your trade, medical equipment and products, and retirement accounts.

Contact Our Burtonsville, Maryland Chapter 7 Bankruptcy Attorney

The Law Office of Donald L. Bell can help you achieve relief from debts and make sure your family will be able to move into a secure future. Contact our firm today at 301-614-0535 to arrange a free consultation.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.