Chapter 7

Chapter 7 BankruptcyD.C. and Maryland Chapter 7 Bankruptcy Attorney

In the event you have insufficient income to pay your past-due bills, you may be able to consider filing Chapter 7 bankruptcy. Since Chapter 7 is considered a “clean slate” this is often the preferred method of saving your home from foreclosure because filing allows you to put a hold on the foreclosure. It is important to note that Chapter 7 will not eliminate student loans, child support payments or taxes in most cases, however some taxes may be forgiven in bankruptcy.

Why Chapter 7 may be preferred:

  • Case is opened and closed between 3-6 months
  • Debtor is left debt-free (except student loans, child support, certain taxes etc)
  • Most filers do not lose property
  • Does not require you to repay back your debt
  • Debtor may keep future income
  • No maximum debt limitations

How does Chapter 7 work?

  1. Checking your eligibility
  2. Filing a petition with the bankruptcy court

Must also include:

  • Schedules of assets and liabilities
  • A schedule of current income and payments
  • Schedule of leases and contracts
  • Statement including financial issues and history
  • Tax return
  1. Meeting with trustee and creditors
  • Debtor is under oath
  • Debtor must answer questions from trustee and creditors regarding debtor’s finances
  • Trustee reviews case, eligibility to file chapter 7 is determined
  • Attend hearing with your Attorney Frank Morris

 

  1. Dispute claims by creditors
  2. Act on your plan to handle secured debt, (i.e. if you plan to keep house or car you must pay the note)
  3. Discharge (Court enters order forgiving your debt)

Not every person who applies in Maryland and DC will qualify for Chapter 7. To determine that you are eligible, a means test must be taken to qualify. In the event that the debtor does not meet chapter 7 prerequisites, the bankruptcy court may convert the case into a chapter 13(repayment plan). In essence, this form of bankruptcy wipes out all of your unsecured debt (credit cards, medical bills, etc.). However, once you file you must be able to pay your secured debt (mortgages, car payments) assuming you plan to keep your house or car. As a bankruptcy law firm, Morris LLP has helped numerous clients with the necessary filings and required counseling classes. Call the Maryland and D.C. bankruptcy attorneys at Morris LLP today at (301) 731-1000 if you are a Maryland or D.C. resident facing overwhelming debts.

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