Hyattsville Chapter 7 Bankruptcy Lawyer

Debt Relief Attorney for Chapter 7 Bankruptcy in Hyattsville, MD

For many people, Chapter 7 bankruptcy can provide a powerful solution to overwhelming debt. When financial hardships have led to large amounts of debt and other difficulties that may affect a person and their family, Chapter 7 can eliminate unsecured debts and provide a new start. At The Law Office of Donald L. Bell, we work to help our clients understand their options for debt relief, ensuring that they can complete the bankruptcy process successfully.

Why People May Consider Chapter 7 Bankruptcy

Financial difficulties can arise for many reasons, and bankruptcy may be an option for those who are unable to keep up with their debt payments while also addressing their day-to-day expenses. Some common reasons people may choose to file for Chapter 7 bankruptcy include:

• Job Loss: A sudden loss of income can make it impossible to cover monthly expenses, leading to missed payments, increased debt, and financial strain.
• Medical Bills: Unexpected medical emergencies or diagnoses of chronic illnesses can lead to extensive expenses related to different types of treatment. Even people who have health insurance may find themselves facing insurmountable medical debt.
• Credit Card Debt: Financial difficulties that affect a person's ability to make credit card payments can cause balances to increase significantly. When a person needs to use credit to cover daily living expenses or emergencies, they may quickly encounter situations where they cannot repay the amounts owed.
• Payday loans: In emergency situations, people may feel that they have no choice but to take out short-term high-interest loans. This can lead to a cycle of increasing debt that may be impossible to get out of.
• Divorce or Separation: The end of a long-term relationship can lead to financial instability. Legal fees, the loss of assets when dividing property, and the challenge of maintaining a household on one income can lead to high amounts of debt that may be difficult or impossible to pay off.
• Unexpected Expenses: Major expenses such as home repairs, vehicle breakdowns, or legal judgments, can put significant strain on personal finances. While personal loans may be available in some situations, paying off these balances can prove difficult.

At The Law Office of Donald L. Bell, we can help clients determine whether Chapter 7 bankruptcy is the right solution to address these or other financial challenges.

Benefits of Chapter 7 Bankruptcy

Bankruptcy offers several key benefits for people facing overwhelming debt. Some of the most important advantages of Chapter 7 bankruptcy include:

• Relief From Creditors: When a person files a petition for Chapter 7 bankruptcy, the court will implement an automatic stay. This will immediately stop all actions that creditors may take to collect debts, including phone calls, letters, repossessions, or legal judgments The automatic stay can provide time to address financial concerns during the bankruptcy process.
• Debt Discharge: Chapter 7 bankruptcy allows most types of unsecured debts to be eliminated. Once the bankruptcy process is complete, a person will be freed from the obligation to make ongoing payments to their former creditors.
• Quick Resolution: Unlike Chapter 13 bankruptcy, which requires a multi-year repayment plan, a Chapter 7 bankruptcy case can typically be resolved in a few months. This often provides the fastest and easiest pathway to a fresh start.
• Protection of Assets: While Chapter 7 bankruptcy may require the liquidation of some of a person's assets, most people are able to complete the process without turning over any of their property thanks to bankruptcy exemptions.

It is important to note that while many unsecured debts can be eliminated through Chapter 7 bankruptcy, there are some types of debts, such as past-due child support payments, student loans, and tax debts, that are not dischargeable in most cases.

At The Law Office of Donald L. Bell, we help clients take full advantage of the benefits of bankruptcy while also providing guidance on how different debts may be addressed during the process. We work to ensure that our clients can eliminate their debts and move forward into a better future.

Why Chapter 7 May Be Preferred Over Chapter 13 Bankruptcy

For many people, Chapter 7 bankruptcy is the preferred option for addressing debt. Some of the reasons people choose Chapter 7 over Chapter 13 include:

• No Repayment Plan: Chapter 7 allows unsecured debts to be discharged without the need to make payments to creditors. In contrast, Chapter 13 requires a person to make monthly payments to a bankruptcy trustee over a period of three to five years.
• Faster Resolution: Chapter 7 bankruptcy typically takes only a few months to complete, allowing for debt relief to be achieved more quickly than the multi-year process of Chapter 13.
• Eligibility: Chapter 7 is available to people who pass a means test, which compares a person's income to the state median income. A person who qualifies for Chapter 7 can take steps to eliminate their unsecured debts quickly.
• No Risk of Dismissal for Missed Payments: In a Chapter 13 case, missing a payment on a repayment plan could result in the dismissal of the bankruptcy case. Chapter 7 does not require ongoing payments, eliminating the risk of this type of dismissal.

While Chapter 7 offers many advantages, it may not be ideal for everyone. If you have significant secured debts, such as a mortgage or car loans, Chapter 13 may provide a way to keep your property and regain financial stability. At The Law Office of Donald L. Bell, we will assess your financial situation and help you determine which type of bankruptcy is the right choice for you.

Contact Our Hyattsville, MD Chapter 7 Bankruptcy Attorney

To learn more about how Chapter 7 bankruptcy may help you achieve a fresh financial start, get in touch with The Law Office of Donald L. Bell today. Contact our office at 301-614-0535 and arrange a free consultation where you can discuss your situation and embark on the path to a positive financial future.

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