Frederick County Bankruptcy Lawyers

Do not make any assumptions that you are doomed to a lifetime of creditor calls and catching up on past due debts. Bankruptcy law allows you to avail yourself of certain protections that can both make these calls stop now and put you on a sounder financial footing in the future. While declaring for bankruptcy can be a difficult step that comes with its own trade-offs, it may be a necessary measure based on your own financial situation. Speak to an experienced Frederick County bankruptcy lawyer to learn more about whether you should seek protection under federal law. 

Why Should I Consider Bankruptcy in Frederick County?

People certainly do not want to file for bankruptcy. They may be worried about the stigma of having gone through bankruptcy, or they may feel like they have failed. You should put those thoughts aside and focus on what may work best for you financially. Regardless of how you ended up in financial distress, bankruptcy offers you valuable relief and the ability to get a fresh financial start in life.

When you complete the bankruptcy process, you may have your unsecured debts discharged permanently. This means that you no longer have to pay them. Of course, there is something that you must surrender in exchange for bankruptcy protection. However, it may be in your best financial interest to consider bankruptcy as a solution to your problems. 

What Is the Tradeoff Involved in Filing for Bankruptcy?

A Chapter 7 bankruptcy is known as a “liquidation.” The price that you must pay for the fresh financial start that you gain through bankruptcy is that you must surrender certain “non-exempt” assets to the bankruptcy trustee. They would then use proceeds from the sale of these assets to pay what they can to your creditors. Although it may be difficult to surrender your personal property, it may be a small price to pay for increased financial freedom going forward.

What Property Can I Keep After a Frederick County Bankruptcy?

Note that not every single thing that you own is subject to surrender. Maryland law allows for certain “exemptions” that permit you to keep some of your property. For example, the following exemptions apply in Maryland bankruptcies:

  • Up to $25,150 can be applied to any property, including a residence, car, cash, or personal items.
  • Up to $6,000 equity in one motor vehicle.
  • Up to $1,000 in household goods, clothing, appliances, and furnishings.
  • Up to $6,000 in cash or any other property (in addition to the general $25,150 wildcard).
  • Up to 75% of earned but unpaid wages (or 30 times the federal minimum hourly wage, whichever is greater).

Your retirement accounts are also protected in a bankruptcy proceeding, meaning that you would not have to surrender your 401 (k). Further, your Social Security benefits are also out of reach of the bankruptcy trustee, as are any pension payments that you are due to receive. 

Are All My Debts Dischargeable in Bankruptcy?

Not every debt that you owe is subject to discharge in bankruptcy. Certain debts will survive the bankruptcy process, and you will continue to owe money. Chapter 7 bankruptcy protection could lead to the discharge of your “non-secured” debts, such as medical and credit card bills. There may be other exceptions that apply to the following debts:

  • Student loans are very difficult to discharge in bankruptcy. 
  • You would continue to owe money on a mortgage or car loan at the conclusion of bankruptcy, provided that you reaffirm the debt, and your property is not subject to surrender.
  • Recent tax debts and those penalties that result from fraud survive the bankruptcy process.
  • Domestic obligations, such as child support and alimony, are never dischargeable in bankruptcy.

Your Frederick County bankruptcy lawyer could review your financial situation and advise you which debts you can expect to have discharged at the conclusion of the process.

Can My Creditors Keep Trying to Collect After I Have Filed for Bankruptcy?

One of the main protections that you receive when you declare bankruptcy is that of the “automatic stay.” This protection means that all efforts to collect on debts that you owe must come to a stop as soon as you declare bankruptcy. Creditors cannot call you, they cannot try to garnish your wages, nor can they make any other attempts to collect on the debt. Everything goes through the bankruptcy trustee. If anyone violates the automatic stay that is associated with bankruptcy, they can face serious consequences. 

What Are the Steps in the Bankruptcy Process?

In general, it will take three to six months to complete the bankruptcy process before you can get a fresh financial start. Before that happens, you would go through the following steps:

  • You must prepare for bankruptcy by completing a credit counseling course and obtaining a certificate.
  • Your lawyer prepares the necessary paperwork, which includes information about your financial situation, including debts and assets.
  • Your bankruptcy lawyer files the petition with the federal district court in Maryland.
  • The automatic stay goes into effect immediately once you have filed for bankruptcy.
  • The court will appoint a trustee whose job it is to oversee your case. 
  • Roughly three to five weeks after you file for bankruptcy, the trustee will hold a meeting of the creditors, where you may be asked to answer certain questions about your case and financial situation. 
  • You would surrender certain non-exempt property to the trustee for liquidation.
  • Before the bankruptcy process is complete, you must complete another debt or education course.
  • At the conclusion of the process, the court would grant the bankruptcy petition, and your non-secured debts would be discharged, provided that they are not subject to an exception.

Why Do I Need a Bankruptcy Lawyer for My Case?

Every bankruptcy petitioner has the choice whether to hire a lawyer for their case. The reality is that getting legal help from an experienced bankruptcy lawyer should not be a difficult decision. Bankruptcy is a legal process, and you must comply with all of the steps to successfully complete it. Further, you are making filings with the court, and you may be subject to serious penalties if you are found to have made intentional errors or fail to disclose assets. Not only can a bankruptcy lawyer help keep you out of trouble, their legal assistance could increase the chances that you could successfully emerge from the process with the fresh financial start you need.

Contact the Frederick County Bankruptcy Lawyers at LeViness, Tolzman & Hamilton if You’re Thinking About Filing for Bankruptcy

If you are in the midst of financial distress, speak to the Frederick County bankruptcy lawyers at LeViness, Tolzman & Hamilton. To schedule a free consultation, submit our online contact form or call today at 800-547-4LAW (4529). 

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.