Maryland Chapter 7 Bankruptcy
Montgomery County & Chapter 7 Bankruptcy
Chapter 7 bankruptcy is the most common form of personal bankruptcy under the Federal Bankruptcy Code. This type of bankruptcy is generally the simplest and quickest form.
Chapter 7 in Maryland discharges debts and is also known as liquidation bankruptcy or straight bankruptcy. In certain circumstances, under Chapter 7 bankruptcy parties can discharge unsecured debts, walk away from liability on homes and avoid foreclosure, and eliminate large debts from a divorce or from an uninsured medical crisis. As part of filing a Chapter 7 bankruptcy in Montgomery County, a trustee appointed by the bankruptcy court may sell off or liquidate some of the property of a debtor for the benefit of creditors.
Most Chapter 7 bankruptcy filings are no-asset cases. If the income of the debtor is below the median income for families in Maryland based on U.S. Census Bureau statistics, the debtor is eligible to file for Maryland Chapter 7 bankruptcy.
There are clear criteria that determine who can file for Maryland Chapter 7 bankruptcy and who is forced to file under Chapter 13. You must also obtain approved credit counseling before you can file Chapter 7 bankruptcy and file any overdue tax returns within weeks of filing a Chapter 7 even in Montgomery County.
Chapter 7 bankruptcy Maryland
Maryland bankruptcy lawyers can tell you that Chapter 7 bankruptcy is often the choice of debtors. Chapter 7 wipes out many of the debts of the filing party. Under Chapter 7 bankruptcy, an appointed trustee may take your nonexempt assets and liquidate or sell them to pay your creditors. While your slate is cleaner, some debt still may remain including the following:
After bankruptcy is filed, laws dictate that you must appear at the meeting of creditors where the trustee can ask you questions about your property and debts.
An attorney skilled in Chapter 7 bankruptcy laws at the Maryland law firm of Goren, Wolff & Orenstein, L.L.C. can answer all your questions about Chapter 7, Chapter 11, and Chapter 13 . The firm has 75 years of experience in all types of Maryland bankruptcy proceedings and litigation. Our lawyers can help. To schedule a free consultation to discuss your bankruptcy case with a lawyer, contact us today.