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Chapter 7 Bankruptcy in Maryland
Looking to File A Chapter 7 in Maryland, Towson?
Chapter 7 of the Bankruptcy Code is used to liquidate the personal property of individuals and corporations. It provides for the orderly distribution of assets and liabilities that aren’t under an exemption to creditors in an equitable manner and the proper priorities as defined by bankruptcy laws. A reliable bankruptcy law firm can help with more information on bankruptcy law.
Let’s find out how to file a bankruptcy claim when in Maryland, Towson. Read on to know more about bankruptcy basics below:
- Maryland’s Bankruptcy Process
- When Should You File a Chapter 7 Bankruptcy?
- Filing Bankruptcy in Maryland
- Steps to Take After Bankruptcy
Maryland’s Bankruptcy Process
A bankruptcy lawyer can help you determine whether bankruptcy is suitable for you if your credit card debt, medical bills, or mortgage payment is overwhelming. According to your scenario, you may file Chapter 7 or 13. Chapter 7 entails selling assets to pay back debts while Chapter 13 will involve three to five years of repaying your creditors without getting phone calls or losing property.
Getting Bankruptcy Papers
Before filing for bankruptcy, compile a list of all your debts. This information is likely on your credit report. Any debt collection notifications or other communications from the last three months should be in your file. You’ll also need six months’ worth of pay stubs and your most recent federal tax return. This information will be sent to your trustee when the case is filed, so having it available ahead of time will save time.
Maryland’s Means Test
The means test is required to qualify for Chapter 7 bankruptcy. This signifies your family’s income is below the state’s median income. With a higher income, you may need to file Chapter 13 and set up a repayment plan.
Getting Credit Advice
Maryland requires credit counseling to file for bankruptcy. A single class makes up the course. It takes about two hours to complete online, in person, or by phone. The lesson does not have to be completed before declaring bankruptcy, and the certificate is valid for 180 days.
Filling out Bankruptcy Forms
Once you’ve confirmed your bankruptcy eligibility, you may begin submitting papers to the bankruptcy court and outlining your financial problems to the trustee. So pay your filing cost and print your bankruptcy paperwork. However, a lawyer may file your petition online.
Up next is the 341 meeting. About 20-40 days after filing, you meet with your trustee and creditors. That meeting will decide the outcome of the bankruptcy.
After filing, you must finish a second financial management course to be discharged from your obligations. The second session teaches you how to develop and adhere to a budget and handle your funds wisely in the future.
When Should You File a Chapter 7 Bankruptcy?
There are a few indicators that you should consider filing for Chapter 7 bankruptcy. The following are five strong indicators that filing for Chapter 7 may be the best option:
- Your debts account for more than half of your annual earnings.
- Even if you took drastic measures, it would take five years (or more) to pay off your debt problems.
- Your debt causes stress in important areas of your life, such as your relationships and health.
- You don’t have a lot of money to spare.
- Your monthly income is less than the state’s median.
Filing Bankruptcy in Maryland
The Process of Filing for Bankruptcy in Maryland
We all know that looking at the forest helps us see the trees, so now is a good time to think about the major stages you’ll take throughout your bankruptcy process.
- Meet with a Maryland Bankruptcy Lawyer at the Grafton Firm to discuss your bankruptcy eligibility and what debts are dischargeable.
- The Grafton Firm will draft a Bankruptcy Petition for you to review
- When ready, we will file the Petition on your behalf
- An “automatic stay” is placed, preventing creditors from contacting you for payments except in extremely restricted situations.
- One of the bankruptcy trustees appointed by the Bankruptcy Court will question you about your property, responsibilities, and finances.
- The Grafton Firm will represent you at the Trustee meeting. The Bankruptcy Trustee will seize any exemption-free property you own and use it to pay off your obligations; any leftover debts will be dismissed.
- Approximately 60 days after meeting with the Bankruptcy Trustee, your bankruptcy petition is completed and all eligible debts will have been paid or discharged.
Steps to Take After Bankruptcy
When you file bankruptcy, there are actions you and your bankruptcy attorney may do to finish your case and move ahead.
First, gather and save all case paperwork. A typical petition for bankruptcy involves 40-50 pages of financial details. Keep copies of the notice of filing and discharge. Keep note of the information since some lenders want copies of bankruptcy filings before granting new loans. This is particularly true for mortgages.
Keep an eye on your credit report. While it’s probable your credit was wiped when you filed for bankruptcy, you can slowly recover it. The better your credit score, the more likely you are to get a loan. Start and stick to a budget to rebuild progressively. A financial counselor can help you live within your means.
Consider setting up an emergency fund. Putting money away from each paycheck can help if you have unexpected medical costs or auto maintenance. So your debt problem doesn’t spiral out of control again.
File For A Chapter 7 Bankruptcy in Maryland Now!
Our bankruptcy law firm has extensive experience in resolving Chapter 7 bankruptcy matters. As your Chapter 7 bankruptcy attorney, we will work tirelessly to assist you in eliminating your unsecured debts via the use of the legal process of bankruptcy. When you need the services of a Chapter 7 bankruptcy lawyer who is committed to assisting you in your efforts to rebuild your financial life, you may turn to our bankruptcy attorneys for sympathetic and caring support.