Chapter 7 bankruptcy is a common form of debt relief tool aimed at providing relief to those individuals who have huge accumulated debts and there is no immediate way of paying back the debtors. Chapter 7 can help wipe out most of the debts but there are some exceptions.
Why Chapter 7
The individual filing for Chapter 7 bankruptcy may be required to let go of a few valuable assets such as jewelry, an expensive car, or costly gadgets. However, if you use the services of an experienced and qualified Chapter 7 bankruptcy Maryland attorney, you may be able to save some of these assets.
Chapter 7 bankruptcy Maryland laws free the filers of most of their unsecured debts that are without collateral. These may include financial instruments like personal loans, medical bills, and credit card debts. Taxes, alimony, child support, and other payments arising out of a court judgment are not eligible for relief under Chapter 7.
Do You Qualify
Before you contact an attorney to file for Chapter 7 bankruptcy Maryland, it is important to find out if you qualify for the same.
• You have to pass the state means test that takes into consideration your income, assets, and expenses.
• You must have not completed a similar bankruptcy over the past eight years
• You must not have filed a Chapter 7 or Chapter 13 bankruptcy Maryland petition during the past 180 days that was rejected for some reason or you voluntarily withdrew
The Process
Filing for Chapter 7 is a complex task and involves multi-stage procedures and submission of numerous documents and files. There are several stages that can stretch over six months in most cases. These include:
• Credit counseling
• Finding a bankruptcy attorney
• Completing the paperwork accurately
• Takeover by the trustee
• Meeting with your creditors
It is mandatory to complete a pre-file bankruptcy counseling course from a qualified nonprofit credit counseling agency. It must be done 180 days before filing. Next, you must find a qualified bankruptcy attorney to be able to file all the forms for Chapter 7 bankruptcy.
The forms must be filed without any errors or your application might be rejected which can add to your woes. Of course, paying the stiff legal fees is something you would prefer avoiding given a chance but it is better to work with a lawyer than risking a rejected Chapter 7 application.
Once you have found a reputed and experienced bankruptcy attorney, filing the paperwork will be a relatively easy job. This is also the point when you get protection from your creditors. They cannot call or contact you or garnish your wages.
On the successful filing of the Chapter 7 bankruptcy Maryland petition, a trustee appointed by the local court will be in charge of the future processes. The first step is a meeting with the creditors in the presence of your lawyer to provide answers to any questions they might have about your finances.
Discharge can happen when every stage of the bankruptcy procedure is complied with. It can take anywhere from three to six months from filing your petition. A discharge effectively means that you are debt-free.