Chapter 7 Bankruptcy

The term bankruptcy may evoke negative connotations, but bankruptcy laws can be a savior for those reeling under severe financial distress in Prince George’s County. It is designed to ease the financial burden of debtors and give them the opportunity to start life afresh.

We are the leading Chapter 7 bankruptcy lawyers in Prince George’s County and Charles County. With our years of experience and deep understanding of the specific areas of the law and how they apply to the state, we can help you get quick and sustained relief from your debt issues. 

What Is Chapter 7 Bankruptcy?

In Chapter 7 bankruptcy in Charles County, debtors must follow a liquidation process where they sell off their non-exempt assets to settle their debts. In return, they receive a ‘discharge’ from most forms of debt. It relieves them from the obligation to repay.

We handle two main types of consumer bankruptcy: Chapter 7 and Chapter 13. Let’s share more details about the various aspects of Chapter 7 bankruptcy. 

In Chapter 7 bankruptcy in Prince George’s County, most clients keep everything they own because we use exemptions in the bankruptcy code. We strive to exempt as much of your property as possible so you can retain it without any legal implications. 

We have helped many clients file for bankruptcy in Largo and wipe out all their debts while keeping all their assets by using the various clauses of Chapter 7 bankruptcy in Charles County.

Why Choose Chapter 7? 

If you qualify based on income and expenses, Chapter 7 bankruptcy is usually the better option. It's faster as the process can be completed in a few months in most cases compared to Chapter 13, which can take up to five years. In Chapter 7 bankruptcy Waldorf, we can help you wipe away all your qualifying debts with little damage to your assets and reputation.

Who Can Qualify?

If your debt seems unmanageable and you cannot afford to raise any loans, Chapter 7 Bankruptcy may be the right choice for you.

If you earn less than the median income in Prince George’s County and if your debts are primarily non-consumer., you can automatically qualify for Chapter 7 bankruptcy.

If you have consumer debts and earn above the median income, you will have to pass a means test to determine if you have disposable income. You won’t qualify for Chapter 7 relief Suitland if you have disposable income.

Once the court approves the case, all eligible unsecured debts, including medical bills and credit card payments, will be discharged. Creditors are barred by law to collect a discharged debt.

Chapter 7 Filing: Pros & Cons

There are pros and cons of filing for Chapter 7 bankruptcy in Charles County. That’s why it is vital to consider all aspects before making a decision.

Pros:

• Quick Debt Discharge: Most debts can be discharged in as little as three to six months.
• End to Financial Stress: Once the case concludes, you get freedom from overwhelming monthly payments and creditor calls.
• Fast Process: The process is relatively quick, typically involving one brief meeting with a trustee to review documents.
• Cost-Effective: Filing costs are reasonable compared to other options.
• Immediate Financial Recovery: You can rebuild your financial stability right after the case is finalized.

Cons:

• Not All Debts Discharged: While many debts are eliminated, not all debts qualify for discharge.
• Long-Term Credit Impact: The bankruptcy record stays on your credit report for ten years, making it harder to qualify for some loans initially.
• Limited Qualification for Loans: Certain loans may be harder to get in the short term due to the Chapter 7 bankruptcy filing.

Exemptions And Asset Protection

In Chapter 7 Bankruptcy White Plains, exemptions are crucial for protecting your property from being used to pay off debts. Here's what you need to know:

Types of Exemptions:

Federal Exemptions: These include assets like Social Security benefits, unemployment compensation, public assistance payments, and retirement accounts.

State Exemptions: Each state has its own set of exemptions for different types of assets and property. Some states even allow you to choose between federal and state exemptions, while others require you to use one or the other.

Protecting Your Assets:

Know Your State's Exemptions: Since exemptions vary by state, it's essential to understand which exemptions apply to Prince George's County and Charles County and are specific to your case. This helps ensure you don't lose any assets during the Chapter 7 bankruptcy process.

Debts Not Discharged Under Chapter 7 Bankruptcy Laws

Chapter 7 bankruptcy provides substantial relief by discharging many debts, but it's crucial to understand which debts may not be discharged.

• Taxes: Some types of taxes may not be discharged.
• Domestic Support Obligations: This includes alimony and spousal support payments.
• Child Support Arrears: Past due child support payments are not discharged.
• Student Loans: Generally, student loans are not discharged in Chapter 7 bankruptcy.
• Fines, Penalties, Criminal Restitution: Most fines, penalties, and criminal restitution obligations are not discharged.
• Debts from DUI/DWI: Debts resulting from personal injuries or death caused by DUI/DWI are not discharged.
• Debts Ruled Non-Dischargeable: Any debts specifically ruled as non-dischargeable by the bankruptcy court Prince George’s County will not be discharged.

Chapter 7 discharge does not protect cosigners or those who guarantee your debt. Creditors can still pursue them for repayment.

Understanding these exceptions and limitations to Chapter 7 discharge is essential for making informed decisions about filing for Chapter 7 bankruptcy Fort Washington. 

The best way of filing for Chapter 7 Bankruptcy Charles County is to seek guidance from a reputed bankruptcy attorney.

At the law office of Erica R.S. Hunt, we can help you comprehend how Chapter 7 will impact your specific debts. Our experienced bankruptcy attorney can guide you on all aspects of Chapter 7 bankruptcy. They can help you make informed decisions to protect your assets while navigating bankruptcy.

Contact us now to schedule an appointment.