Chapter 7 of the Bankruptcy Code provides relief for individuals with an income below the state median, enabling them to eliminate debts and stop collections efforts. Filing for Chapter 7 bankruptcy can help you:
- Safeguard your assets
- Discharge most debts
- Rebuild your credit score
- End collections actions
- Stop wage garnishment
MARYLAND CHAPTER 7 BANKRUPTCY OVERVIEW
Who Can Qualify For A Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is designed for individuals who pass the “means test,” meaning their income falls below Maryland’s median income level. The attorneys at Sirody Bankruptcy Center can assist you in determining your eligibility and understanding what qualifies as income. If your income exceeds the state’s median, our team will explore other financial strategies tailored to your situation.
Benefits of Chapter 7 Bankruptcy in Maryland
- Medical expenses
- Credit card debt
- Unsecured personal loans
Another advantage is the ability to claim exemptions for your home and personal property under Maryland law. Depending on your home’s equity and your mortgage status, you might not need to sell your residence.
First Steps in Filing for Chapter 7 Bankruptcy
Bankruptcy laws vary by state, making it essential to work with a knowledgeable attorney familiar with both Maryland and federal regulations. A trusted attorney can streamline the process, reducing stress and ensuring your petition is accurate and timely. The initial step involves a comprehensive review of your financial profile, including income, debts, and assets. Once this analysis is complete, your attorney will prepare and submit the required paperwork to file your Chapter 7 petition. If the court discharges your debts, you will receive official notification that your case is finalized.
What to Expect During the Chapter 7 Process
Automatic Stay
When your attorney files your bankruptcy petition, an “automatic stay” takes effect, halting all debt collection efforts. This includes stopping wage garnishments and preventing creditors from contacting you.
Meeting of Creditors
About 40 days after filing, you will receive a case number and a date for your “341 meeting,” also known as the meeting of creditors. During this meeting, a trustee will review your case and ask questions about your debts and financial situation. After the meeting, the court will decide whether to discharge your debts, typically within six to eight weeks.
Non-Dischargeable Debts
While Chapter 7 can eliminate most debts, some obligations cannot be discharged, including:
- Alimony
- Child support
- Recent income tax debt
- Student loans
- Debts incurred through fraud
- Criminal restitution
A Fresh Start
Dealing with overwhelming debt can cause significant stress for you and your family. The experienced attorneys at Sirody Bankruptcy Center have helped countless Maryland residents achieve financial relief through Chapter 7 bankruptcy. This process allows you to wipe away debts and redirect your income toward essential expenses, such as mortgage or car payments. Contact Sirody Bankruptcy Center at (410) 415-0445 to learn more about your options for a brighter financial future.
UNSURE IF CHAPTER 7 BANKRUPTCY IS RIGHT FOR YOU?
Our experienced bankruptcy attorneys will take the time to review your individual case and help you evaluate options to make a fresh start. Schedule a free consultation today.