College Park Chapter 7 Bankruptcy Attorney

Lawyer for Bankruptcy and Debt Relief in College Park, MD

Chapter 7 bankruptcy is a legal solution that can provide debt relief for people who are struggling with unmanageable financial burdens. This type of bankruptcy can offer a fresh start by eliminating qualifying debts and allowing debtors to regain financial stability. For many, Chapter 7 is an ideal option, but it is important to understand the specific rules that apply in Maryland. At The Law Office of Donald L. Bell, we help people in College Park, Maryland navigate the bankruptcy process, helping them understand the debts that can be discharged and the exemptions that are available to protect their assets.

Legal Help With Chapter 7 Bankruptcy in College Park, Maryland

Filing for Chapter 7 bankruptcy can be a complex process, since there are both state and federal laws that can affect these cases. We can guide you through this process, ensuring that your case is handled efficiently and ensuring that you will be able to receive relief from your debts. We will provide personalized advice based on your unique circumstances, and we will ensure that you file all of the necessary paperwork, provide representation in bankruptcy court, and negotiate with creditors if necessary. Our goal is to reduce your stress and uncertainty and make sure you receive the fresh financial start you need.

Why Choose Chapter 7 Over Chapter 13 Bankruptcy?

In many cases, the primary reason for using Chapter 7 bankruptcy is that is provides a quick resolution to debt-related issues. While Chapter 7 is often referred to as "liquidation bankruptcy," because it may involve selling non-exempt assets to pay off creditors, most people who file for Chapter 7 can keep most, if not all, of their property due to the available exemptions, which are discussed further below.

Chapter 7 cases are typically faster than Chapter 13 cases, taking about three to six months to complete. Chapter 13 bankruptcy involves a repayment plan that can last from three to five years. Chapter 7 will eliminate qualifying debts entirely, while Chapter 13 will reorganize certain debts into a repayment plan. For those who qualify, Chapter 7 can provide immediate relief from creditors and debt collection efforts, making it an attractive option for people seeking a fresh start.

However, not everyone qualifies for Chapter 7. To file for Chapter 7 bankruptcy, you must pass the means test, which assesses your income relative to the median income in Maryland. If your income is too high, you may be required to file for Chapter 13 instead.

Debts That Can Be Discharged in Chapter 7 Bankruptcy

Chapter 7 bankruptcy allows for the elimination of many types of unsecured debts. These debts are not secured by collateral, and creditors will not have the right to seize specific property if debts are not paid. The most common types of debts that can be discharged through Chapter 7 include:

• Credit card debt: The elimination of these debts can free you from high interest rates and collection efforts.
• Medical bills: Unpaid medical expenses can be overwhelming, and by eliminating these debts, you can focus on your health and recovery.
• Personal loans: Certain types of unsecured loans, including payday loans or lines of credit, can be eliminated, providing relief from predatory lenders.
• Utility bills: Past-due bills for services like gas and electricity that have not been paid before filing for bankruptcy can be discharged.
• Certain tax debts: Some older tax debts may qualify for discharge, but this is subject to specific rules and conditions.

It is important to note that not all debts are dischargeable in Chapter 7 bankruptcy. Obligations like child support, alimony, and student loans are typically not eligible for discharge. Secured debts can be discharged, but in these cases, the lender will most likely take possession of the collateral. We can help you explore all available options to address these obligations.

How Liquidation and Exemptions Work in Chapter 7 Bankruptcy Cases

A critical aspect of Chapter 7 bankruptcy is the liquidation process. After you file for bankruptcy, a trustee will be appointed to review your assets and determine if any of your property can be seized and sold to pay off creditors. Once the liquidation process begins, the trustee will evaluate your assets, such as real estate property, vehicles, and personal belongings. If any non-exempt property is identified, it may be liquidated. After this process is completed, the court will issue a discharge order, wiping out the remaining eligible debts.

The liquidation aspect of Chapter 7 can sound daunting, but it is important to remember that the vast majority of Chapter 7 cases are considered "no-asset cases," and the debtor will not lose any property. Our experienced College Park bankruptcy attorney can help you understand what to expect in your specific case and guide you through this process with confidence.

Maryland provides several exemptions that allow debtors to protect certain assets from liquidation. These exemptions apply to property that is necessary for living and working, and they are designed to help you maintain a basic standard of living after bankruptcy. These exemptions include:

• Homestead exemption: You can exempt up to $25,150 of equity in your home under the Maryland homestead exemption, which protects your primary residence from liquidation.
• Personal property exemption: Up to $1,000 in household goods may be exempted under Maryland law, covering furniture, clothing, and other necessities.
• Tools of the trade: If you have certain tools or equipment used in your occupation, you may exempt property valued up to $5,000.
• Wildcard exemptions: Maryland provides a miscellaneous $5,000 exemption for other personal property, which can be applied to vehicles or any other items not covered by other exemptions. An additional $6,000 may be used for other types of property, and if necessary, this exemption may be added to the homestead exemption.

These exemptions help ensure that you can retain essential assets, allowing you to rebuild your financial life without losing everything during the bankruptcy process.

Contact Our College Park, MD Chapter 7 Bankruptcy Lawyer

Filing for Chapter 7 bankruptcy can provide you with the fresh financial start you are looking for. However, navigating the legal system can be challenging without the right guidance. At The Law Office of Donald L. Bell, we can help you understand your options, protect your rights, and make informed decisions about your financial future. Contact us at 301-614-0535 today to set up your free consultation. Let us help you take control of your financial future.

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