Baltimore Chapter 7 Bankruptcy Attorney

Baltimore Chapter 7 Bankruptcy Lawyer

Medical expenses, divorce, sudden loss of employment, business closure, unexpected costs, and overspending can put you in a financial crisis. In these cases, you have options, including filing for Chapter 7.

At Belsky & Horowitz, LLC, we can help you make the right decision during this time. Bankruptcy can serve as a tool to help people rebuild credit and secure their family’s financial future.

If you are ready to see how this debt relief operates in Maryland, contact our Baltimore Chapter 7 bankruptcy lawyer today.

Is Chapter 7 Bankruptcy Right for You?

Bankruptcy is a federal action governed by Title 11 of the U.S. Code; you can get relief from your debts. With that, you have the option to file a Chapter 7 bankruptcy for liquidation or a Chapter 13 bankruptcy for reorganization.

According to the United States Courts, Chapter 7 bankruptcy is also known as liquidation bankruptcy. With this process, you can get help if you are unable to repay your debts. Chapter 7 is often the right option for individuals and married couples with high unsecured debt and earning below the state’s median income levels.

Before you can file, you will have to pass a mean test to determine whether you qualify for Chapter 7 or would be better suited for Chapter 13 bankruptcy.

The means test calculates whether an individual’s income is low enough to qualify for Chapter 7 bankruptcy by deducting allowed expenses and comparing the result to the median income in Maryland. If your income is below the median, you will likely be a qualified candidate for Chapter 7 bankruptcy.

Chapter 7 bankruptcy allows you to discharge most unsecured debts, such as:

  • Credit card bills
  • Medical debt
  • Wage garnishment
  • Judgments
  • Certain tax debt

Remember that some debts cannot be discharged through this process. Often, these include student loans, child support, alimony debts, and income tax debt. For that reason, you will want to speak with a qualified Baltimore Chapter 7 bankruptcy attorney to learn about your options.

How Can Pursuing This Debt Relief Option Benefit Me?

When you file for Chapter 7, it puts an immediate halt to debt collectors’ actions. They cannot call, write, file lawsuits, or attempt to collect your money. This relief can take a weight off your shoulders. During this time, you have space to reorganize and plan your financial future without constant harassment from creditors.

Also, Chapter 7 can stop repossession attempts by creditors. If you’re at risk of losing your car or other secured property, filing for bankruptcy can often prevent these actions.

Plus, it can halt foreclosure attempts on your home, allowing you to reevaluate your financial situation and possibly keep your property. However, you need to work out a plan with your mortgage lender.

One of the biggest benefits of filing for Chapter 7 bankruptcy is the discharge of debts. As a result, you can have a fresh start and the opportunity to rebuild your financial stability without the burden of overwhelming debt.

Keep in mind that this is a generalized list of benefits, and yours may differ depending on your circumstances. When you reach out to a Chapter 7 bankruptcy lawyer, you can expect them to provide personalized guidance for your particular situation.

What Is the Process for Filing Chapter 7?

While Chapter 7 is a fresh start for many people, you will have to follow a strict process to properly discharge these debts. First, you must undergo credit counseling from an approved agency within 180 days before filing the paperwork. With that, you can learn about your options and understand the impact of proceeding through bankruptcy.

Next, you will need to gather documentation for income records, assets, debt, and expenses. With that information, you can fill out your bankruptcy forms. During this time, it is recommended that you work with an experienced Baltimore Chapter 7 bankruptcy lawyer. They will ensure that everything is accurate and filed with the right Baltimore, Greenbelt, and Salisbury court. With the bankruptcy petition, you have officially started the process.

Once you have filed, an automatic stay goes into effect. This legal order prevents creditors from pursuing debt collection activities during the bankruptcy process. After 20-40 days after filing, you must attend a 341 meeting with the bankruptcy trustee and any creditors who choose to participate. All your creditors can ask questions about your financial situation at this meeting.

The courts assign your case to a trustee, who is responsible for collecting your assets and selling them. Remember that you have the right to keep certain property, such as a house, vehicle, or furniture. But before you can list those assets, you will need to sign an affirmative agreement. With that, you will return to paying those debts and agree to make payments.

Any net proceeds from the liquidation sale will be distributed to your creditors, along with a commission for the trustee. After the 341 meeting and any other necessary steps, the court issues an Order of Discharge. With that, you have fully eliminated your eligible debts and have a fresh start.

While filing a bankruptcy petition with the Maryland Bankruptcy Court is relatively quick, it can take a few months, usually three to four months, to fully discharge your debt.

Chapter 7 bankruptcy is a powerful tool for debt relief, but you still need to consult with a bankruptcy attorney before filing. Debt relief often has many caveats that can be tricky to navigate without legal help.

Contact Belsky & Horowitz, LLC today to learn more about your options.

What Fees Are Associated with Chapter 7 Bankruptcy?

Currently, the Chapter 7 filing fee is $338, which includes a filing fee, administrative fee, and trustee surcharge, per the United States Bankruptcy Court Division of Maryland. In some cases, you may be able to file a waiver if you are unable to pay the expense. With that, you may be able to pay in installments to have the fee completely waived.

The Role of a Lawyer in Your Chapter 7 Bankruptcy Case

While hiring an attorney for filing Chapter 7 bankruptcy is not legally mandatory, professional guidance can be beneficial.

Bankruptcy law is complex. A Chapter 7 lawyer knows the current bankruptcy code while staying updated on changing regulations and court rulings. They can help clearly explain your legal rights, obligations, and options.

They can also recommend the most suitable bankruptcy chapter for your specific case based on their assessment of your income, debts, and assets. This personalized approach lets you find the right filing that aligns with your financial goals and circumstances.

An attorney will help you gather the necessary documents, including income records, debts, and asset details. Additionally, they will ensure that all forms are properly completed and filed.

Filing errors can lead to delays, dismissal, or even loss of assets. With assistance from a lawyer, you avoid common mistakes. They will also make sure that you adhere to deadlines and comply with court procedures throughout the process.

A bankruptcy lawyer may also help you understand exemptions and protect your assets. You will know which property you can keep and what may be subject to liquidation.

If you want to keep secured assets, like a car or home) an attorney can negotiate reaffirmation agreements with creditors.

Most importantly, a lawyer ensures that eligible debts are discharged. In turn, you can have a fresh start to rebuild your financial life.

Remember that hiring a bankruptcy attorney is an investment in your financial future. With their help, an attorney will provide personalized advice, reduce stress, and increase your chances of a successful bankruptcy outcome.

Baltimore Legal Representation You Can Trust

Facing the prospect of filing for bankruptcy can be overwhelming. However, you don’t have to go through this difficult process alone.

When you choose to work with Belsky & Horowitz, LLC, we are here to support you every step of the way.

If you’re in Maryland and need to learn more about your legal rights and options, make sure to schedule a consultation with our Baltimore Chapter 7 bankruptcy lawyer today.



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