Chapter 7 bankruptcy is what most people think of when they think of bankruptcy. Expenses are eating up all your income, and there's nothing left at the end of the month to pay your bills. Maybe you are facing a wage garnishment that is devastating your finances. The benefits of chapter 7 are substantial; in less than four months most people who file chapter 7 are relieved of the majority of their debt. It is relatively cheap and painless if done with competent Maryland bankruptcy attorney. The following are examples of debts that can be discharged in chapter 7: credit cards, unsecured lines of credit, personal liabilities on mortgages, certain types of tax debt, repossession deficiencies and medical bills.
Although chapter 7 offers many benefits it is not without risk and it is not always the right choice. That's why it's so important to consult with a Maryland bankruptcy attorney. Consumers who have fallen behind on their mortgages, for example, would not be able to treat mortgage arrears in a chapter 7 to cure the deficiency and keep their property. So, if you are behind on your home but want to keep it through the bankruptcy process you would need to consider filing for chapter 13. Generally if you owe tax debts they should be paid in a chapter 13 - most taxes are not dischargeable in chapter 7.
A common concern people have is that they may lose their personal belongings. Debtors are entitled to keep certain assets free from the claim of creditors, thanks to exemption laws. Typical exemptions are the homestead exemption (equity in a personal residence), household goods and furnishings, clothing and tools used in debtor's job. Exemption amounts vary.
During your free consultation with a Maryland bankruptcy attorney we will work with you to develop mutual goals and determine the best route to get you out of debt and on your way to a fresh start.