Baltimore Chapter 7 Bankruptcy Lawyers

Financial struggles can quickly become overwhelming, leaving individuals and families unsure of where to turn. If you are dealing with mounting debt, creditor harassment, or the threat of foreclosure, you may be considering bankruptcy as a way to regain financial stability. Chapter 7 bankruptcy is one of the most common forms of debt relief, offering eligible individuals a fresh start by eliminating unsecured debts.

At LeViness, Tolzman & Hamilton, our Baltimore Chapter 7 bankruptcy lawyers understand the stress and uncertainty of financial hardship. We are here to guide you through bankruptcy, explain your legal options, and help you take the first steps toward a debt-free future.

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, also known as liquidation bankruptcy, is a legal process that allows individuals to discharge most of their unsecured debts, such as:

  • Credit card balances
  • Medical bills
  • Personal loans
  • Utility bills
  • Certain tax debts

When you file for Chapter 7 bankruptcy, a court-appointed trustee may sell non-exempt assets to pay off creditors. However, Maryland’s exemption laws allow many individuals to keep most, if not all, of their property. Once the bankruptcy is finalized, you will no longer be legally responsible for the discharged debts, giving you a fresh financial start.

Who Qualifies for Chapter 7 Bankruptcy?

To file for Chapter 7 bankruptcy in Maryland, you must meet certain eligibility requirements, including passing the means test. The means test evaluates your income and expenses to determine if you qualify.

The Chapter 7 Means Test

The means test compares your household income to the median income in Maryland for a household of your size:

  • If your income is below the median, you automatically qualify for Chapter 7.
  • If your income is above the median, further calculations will assess whether you have enough disposable income to repay your debts through a Chapter 13 repayment plan instead.

Even if you do not qualify under the initial means test, our experienced bankruptcy lawyers can help determine whether you may still be eligible based on your expenses and financial obligations.

Benefits of Filing for Chapter 7 Bankruptcy

Filing for Chapter 7 bankruptcy offers several key benefits, including:

  • Immediate Debt Relief: An automatic stay goes into effect once you file. This gives you immediate relief from financial pressure and allows you time to work through the bankruptcy process.
  • Debt Discharge: Most unsecured debts are discharged in a Chapter 7 case, meaning you are no longer legally responsible for paying them. This allows you to move forward without the burden of overwhelming debt.
  • A Fresh Financial Start: Chapter 7 gives you a clean slate by eliminating debt and allowing you to rebuild your finances. While bankruptcy stays on your credit report for up to 10 years, many people see an improvement in their credit score within 1-2 years after filing.

The Chapter 7 Bankruptcy Process in Maryland

Filing for Chapter 7 bankruptcy in Baltimore involves several important steps:

  1. Credit Counseling

Before filing, you must complete a credit counseling course from an approved provider. This course helps you explore alternatives to bankruptcy and ensure that Chapter 7 is the best option for you.

  1. Filing the Bankruptcy Petition

You must file a bankruptcy petition with the Maryland U.S. Bankruptcy Court. This petition includes detailed information about your:

  • Income and expenses
  • Assets and liabilities
  • Debts and creditors

Once filed, the automatic stay takes effect, stopping creditor actions immediately.

  1. Appointment of a Bankruptcy Trustee

A bankruptcy trustee is assigned to your case to review your finances and oversee the process. The trustee may sell non-exempt assets to repay creditors, though most individuals keep their property under Maryland’s bankruptcy exemptions.

  1. 341 Meeting of Creditors

Approximately 20-40 days after filing, you must attend a Meeting of Creditors (341 meeting). The trustee and any creditors who choose to attend will ask you questions about your financial situation. Our attorneys will be there to represent you and ensure the process goes smoothly.

  1. Debtor Education Course

Before your debts are discharged, you must complete a debtor education course, which provides financial management tips to help you rebuild your credit.

  1. Discharge of Debts

If there are no complications, your eligible debts will be discharged within 60-90 days after the 341 meeting. This officially eliminates your legal obligation to repay those debts.

Maryland Bankruptcy Exemptions: What Property Can You Keep?

Many people worry that filing for Chapter 7 bankruptcy means losing everything. However, Maryland’s bankruptcy exemption laws protect many essential assets, including:

  • Home equity (up to a certain amount)
  • Personal property (clothing, household goods, furniture, etc.)
  • Wages and pensions
  • Tools of the trade (for work-related items)
  • Wildcard exemption (for any property of your choice, up to a set value)

Our attorneys can help you maximize your exemptions to protect as much of your property as possible.

Life After Chapter 7 Bankruptcy: Rebuilding Your Finances

While Chapter 7 bankruptcy provides a fresh start, it’s important to take steps to rebuild your credit and financial health after your debts are discharged.

How to Rebuild Credit After Bankruptcy

  • Pay Bills on Time: On-time payments are the most significant factor in your credit score.
  • Open a Secured Credit Card: This type of card requires a deposit and can help rebuild your credit.
  • Monitor Your Credit Report: Check your report for errors and ensure discharged debts are reported correctly.
  • Create a Budget: Carefully managing your income and expenses can help prevent future financial struggles.

Why Choose LeViness, Tolzman & Hamilton

At LeViness, Tolzman & Hamilton, we understand that filing for bankruptcy is a significant decision. Our experienced Baltimore Chapter 7 bankruptcy lawyers are here to provide the following:

  • Personalized legal guidance tailored to your financial situation
  • Comprehensive support throughout the bankruptcy process
  • Strong representation to protect your rights and assets
  • Compassionate service to help you move forward with confidence

With decades of experience helping Maryland residents achieve debt relief, we are committed to finding the best solution for your needs.

Contact the Baltimore Chapter 7 Bankruptcy Lawyers at LeViness, Tolzman & Hamilton

If you are considering Chapter 7 bankruptcy in Baltimore, do not face the process alone. The Baltimore Chapter 7 bankruptcy lawyers at LeViness, Tolzman & Hamilton can help. Take control of your financial future and start fresh with trusted legal support by your side. Call 800-547-4LAW (4529) or complete our online form for a free consultation.

We have offices in Baltimore and Owings Mills, allowing us to represent clients in Maryland, including those in Anne Arundel County, Baltimore County, Carroll County, Harford County, Howard County, Montgomery County, Maryland’s Western Counties, Prince George’s County, Queen Anne’s County, Southern Maryland, and the Eastern Shore, as well as the communities of Catonsville, Essex, Halethorpe, Middle River, Rosedale, Gwynn Oak, Brooklandville, Dundalk, Pikesville, Nottingham, Windsor Mill, Lutherville, Timonium, Sparrows Point, Ridgewood, and Elkridge.