Harford County Chapter 7 Bankruptcy Lawyers

If phone calls and communications from your creditors have become a part of your daily life, you should not assume that your life will be that way forever. Federal law provides you with options that may even help you get out of debt and obtain a fresh financial start in life. The Chapter 7 bankruptcy process may mean that some of your debts can be discharged entirely. You should consider hiring an experienced attorney at the outset of the process to give you the strongest chance of the best possible outcome. 

Does Everyone Qualify for Chapter 7 Bankruptcy in Maryland?

Chapter 7 provides you with valuable protection because it means that you can have many of your debts discharged. Accordingly, the policy behind the law wants to limit this extraordinary relief to a certain class of individuals. When it comes to an individual household, you must meet the means test to be able to file for Chapter 7 bankruptcy.

The means test looks at your overall income and your household size to determine whether you fall under the threshold. There is a sliding scale of the maximum allowable income amount depending on how many people are in your household. Even if you do not qualify under the means test, there are other ways that you can seek bankruptcy protection in Maryland.

What Is the Process for Chapter 7 Bankruptcy in Maryland?

There are multiple steps in the Chapter 7 bankruptcy process that you will need to successfully complete before your debts can be discharged. Here is what you can generally expect during a Chapter 7 bankruptcy in Maryland: 

  • You must first determine whether you are eligible to file for Chapter 7 bankruptcy or if you must seek protection using other means.
  • Maryland law requires that you take a credit counseling course before you file for bankruptcy.
  • You should gather all necessary financial documentation and provide it to your Chapter 7 bankruptcy attorney.
  • Prepare the bankruptcy filing and all of the necessary supporting schedules.
  • File the bankruptcy petition with the federal court and pay all necessary fees.
  • The bankruptcy court appoints a trustee who is responsible for your case.
  • The Section 341 meeting with your creditors is a key event in the bankruptcy process, and they may be able to lodge objections to your filing.
  • You must take another credit class during the bankruptcy process before everything can be finalized.
  • At the conclusion of the bankruptcy process, your non-secured debts may be discharged.

In all, you can expect the Chapter 7 bankruptcy process to take between 3 and 6 months. More complex cases could take longer, especially if there are legal issues. Hiring an experienced Harford County Chapter 7 bankruptcy attorney for your case may minimize potential issues that could slow down the bankruptcy process. 

What Happens After I File for Bankruptcy in Harford County?

One of the most important reasons why you may file for bankruptcy is to get breathing room from your creditors. As soon as you file for bankruptcy, something called the automatic stay goes into effect. This is an important feature of federal law that prohibits any of your creditors from taking any type of action to collect from you. For example, if you have a mortgage, and the lender is taking steps to foreclose, they must stop this immediately. There are serious consequences if a creditor is found to have violated the automatic stay. In other words, phone calls and other communications from your creditors will literally stop overnight. 

Does Chapter 7 Mean That I Must Give Up My Property?

If you declare Chapter 7 bankruptcy, there are trade-offs that you must make. The law does allow you a fresh financial start, but it may come with a potential cost. Specifically, those who seek protection under Chapter 7 must surrender assets to the bankruptcy trustee in the case, who will then sell them to pay off your creditors. This may be a sacrifice that you need to make to get out from under the mountain of debt that seemingly traps you.

Maryland law does allow you to keep some of your property through exemptions. In other words, the law recognizes that you cannot end up with nothing. Chapter 7 property exemptions in Maryland include the following:

  • The homestead exemption allows you to keep $25,150 in equity in your home, and this could be doubled for a married couple.
  • There is a motor vehicle exception that allows you to keep up to $5,000 of equity in one vehicle.
  • You can keep up to $1,000 per item for household furnishings, clothing, appliances, books, pets, and similar items.
  • There is a wildcard exemption of $6,000 for any type of property, and you may be able to apply unused homestead exemption amounts to increase this. 

Do All of My Debts Get Discharged Under Chapter 7?

Chapter 7 bankruptcy discharges certain unsecured debts entirely. Not all of the money that you owe may be considered an unsecured debt. For example, if you have taken out a mortgage or a car loan, this is a loan that is secured by the property itself. Accordingly, these debts do not get discharged in the Chapter 7 process. Unsecured debts cover things such as credit card bills and medical expenses. Even if not all of your debt is discharged, Chapter 7 can still present you with a valuable opportunity to clear some of the debt that you cannot pay.

You will not be able to have the following types of debts discharged in a Chapter 7 bankruptcy:

  • Secured debts, as described above.
  • Child support arrears that you may owe.
  • Student loan debts are extremely difficult, but not impossible, to have discharged in bankruptcy.
  • Tax debts that you owe, although you may be able to have older debts discharged under certain circumstances.
  • HOA fees, if you continue to retain ownership of the property. 

How Does a Chapter 7 Bankruptcy Lawyer Help Me?

A Chapter 7 bankruptcy lawyer provides essential guidance throughout the liquidation bankruptcy process. Attorneys evaluate your financial situation, determining whether Chapter 7 is appropriate or if Chapter 13 bankruptcy better serves your needs. They prepare and file all required paperwork, including petitions, schedules, and statements of financial affairs, ensuring accuracy and compliance with complex federal bankruptcy laws.

Lawyers protect exempt property from liquidation, maximizing assets you can keep under state or federal exemptions. They represent you at the 341 meeting of creditors, handle trustee communications, and address objections or complications. Experienced bankruptcy attorneys stop creditor harassment immediately through automatic stays, defend against creditor challenges, and guide you toward successful discharge of qualifying debts and financial fresh starts.

Harford County Bankruptcy Lawyers at LeViness, Tolzman & Hamilton Can Help Improve Your Future

If you are in financial distress, and you are running out of hope for improving your situation, speak to the Harford County bankruptcy lawyers at LeViness, Tolzman & Hamilton.  We can explain how Chapter 7 bankruptcy can provide you with a valuable lifeline that can improve your future. Schedule a free initial consultation with a Harford County bankruptcy attorney by visiting our website or by calling us today at 800-547-4LAW (4529). We have offices in Baltimore and Owings Mills, and we serve clients in the surrounding areas.