Rockville Chapter 7 Bankruptcy Attorney

Lawyer for Bankruptcy and Debt Discharge in Rockville, Maryland

Financial struggles can be overwhelming for many people and families, and when debts go unpaid, this can lead to issues such as foreclosure, repossessions, legal judgments, and wage garnishment. Chapter 7 bankruptcy provides a powerful solution for people who need relief from unmanageable debt. By filing for Chapter 7, people in Rockville, Maryland, can discharge unsecured debts and move forward with a clean financial slate. At The Law Office of Donald L. Bell, we provide legal help for people and families in bankruptcy cases, ensuring that they understand their options and can take the proper steps to protect their assets and complete the bankruptcy process successfully.

Determining Eligibility for Chapter 7 Bankruptcy

While Chapter 7 bankruptcy may provide the fastest and most efficient form of debt relief, not everyone will qualify. The process of determining eligibility involves a means test that will provide an evaluation of a person's financial circumstances. At The Law Office of Donald L. Bell, we help clients understand their eligibility by guiding them through the means test and reviewing their financial situations in detail.

Issues to address when determining eligibility for Chapter 7 bankruptcy include:

1. Means Test

The means test is used to determine whether a person's income is low enough to qualify for Chapter 7 bankruptcy. A debtor's household income will be compared to the median income in Maryland for that size household. A person with an income below the state median will automatically qualify for Chapter 7.

In cases where a person's income is above the median, the means test will consider their disposable income after accounting for necessary living expenses like housing, utilities, and healthcare. If their disposable income is low enough that they would not be able to repay a significant portion of their debts, they will qualify for Chapter 7 bankruptcy.

Our attorney will help you complete the means test accurately, ensuring that all relevant information about income and expenses is considered correctly.

2. Review of Financial Situation

In addition to the means test, we will conduct a comprehensive review of your finances, looking at all the debts you owe, the income you earn, and the assets you own. This helps us determine whether Chapter 7 is the right option for you, and it will also ensure that we can prepare and submit all forms and paperwork during your case.

3. Credit Counseling

Before you can file for bankruptcy, you must first take a course that will review your options regarding debts and bankruptcy. This course is a mandatory step in the bankruptcy process. Our attorney can help you find an approved provider and ensure that you meet this requirement.

Maryland Bankruptcy Exemptions: Protecting Your Property

One of the most common concerns people have when filing for Chapter 7 bankruptcy is whether they will lose their property. Fortunately, Maryland provides bankruptcy exemptions that allow you to protect essential assets from liquidation. These exemptions are meant to ensure that you can keep the property necessary for maintaining your life and livelihood.

At The Law Office of Donald L. Bell, we will help you take full advantage of Maryland's bankruptcy exemptions, ensuring that you retain as much of your property as possible. Some of the key exemptions available in Maryland include:

1. Homestead Exemption

You can protect up to $25,120 of the equity in your home. This exemption can help ensure that you will not lose this important investment.

2. Exemptions for Personal Property

You will generally be allowed to keep household goods worth up to $1,000, tools of a trade valued at $5,000 or less, and other personal property with a total value of $5,000.

3. Wildcard

Maryland offers an additional exemption of up to $6,000 for other items you own. If necessary, this exemption can be applied to your home equity, allowing you to receive a total homestead exemption of 31,120.

4. Retirement Accounts

Most retirement savings accounts, including IRAs and 401(k) accounts, are protected during bankruptcy, ensuring that your retirement savings will remain intact.

The Chapter 7 Bankruptcy Process

At The Law Office of Donald L. Bell, we can provide guidance to ensure that you can complete your bankruptcy case successfully. We can assist with:

1. Filing the Bankruptcy Petition

We will prepare all required paperwork and submit a petition to the appropriate bankruptcy court. By ensuring that all documents are complete and accurate, you can make sure you will be protected by an automatic stay, which will prevent creditors from proceeding with collection actions.

2. Creditors' Meeting

After filing your petition, you will attend a meeting with the bankruptcy trustee and creditors involved in your case. This meeting will usually allow the trustee to verify the information in your bankruptcy petition, and creditors may object to the discharge of debts, although this is rare. Our lawyer will make sure you are prepared for the creditors' meeting, and we will provide representation to ensure that the right information is provided when requested.

3. Liquidation

If you own any assets that are non-exempt, the bankruptcy trustee may take possession of them and liquidate them to repay some of your debts. However, you will most likely be able to use the available exemptions to keep all of your essential property.

4. Discharge

At the conclusion of your case, the court will issue a discharge order that will eliminate your eligible debts. Unsecured debts that may be forgiven at this time may include credit cards, payday loans, and medical bills. Your bankruptcy case will then be closed.

Contact Our Rockville, MD Chapter 7 Bankruptcy Lawyer

The Law Office of Donald L. Bell is here to provide the guidance and support you need as you address debts through bankruptcy. To arrange a free consultation and begin the Chapter 7 bankruptcy process, contact us at 301-614-0535. We are ready to help you achieve a fresh financial start.

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