Bankruptcy Attorney Chapter 7 Maryland
Chapter 7 (Liquidation)
Before hiring bankruptcy chapter 7 lawyers, you should be familiar with what the process is and what the results may be, and learn if it’s the right match for your circumstances. Read our guide to Maryland chapter 7 bankruptcy here.
In a bankruptcy case under chapter 7, you file a petition asking the court to discharge your debts. The basic idea in a chapter 7 bankruptcy is to wipe out (discharge) your debts in exchange for your giving up property, except for “exempt” property which the law allows you to keep. In most cases, all of your property will be exempt. But property which is not exempt is sold, with the money distributed to creditors.
If you want to keep property like a home or a car and are behind on the mortgage or car loan payments, a chapter 7 case probably will not be the right choice for you. That is because chapter 7 bankruptcy does not eliminate the right of mortgage holders or car loan creditors to take your property to cover your debt.
If your income is above the median family income in your state, you may consider filing a chapter 13 case. Median family income is different in each state. Higher-income consumers who are above the state median must fill out “means test” forms requiring detailed information about their income and expenses. If the forms show, based on standards in the law, that they have a certain amount left over that could be paid to unsecured creditors, the bankruptcy court may decide that they cannot file a chapter 7 case, unless there are special extenuating circumstances.
If you’re looking for more information or are ready to receive a free consultation, then call bankruptcy chapter 7 attorney Goren & Tucci at 301-977-4300 today.