Prince George’s County Chapter 7 Bankruptcy Lawyers

If you’re feeling overwhelmed by mounting bills, collection calls, or the threat of losing your home, you’re not alone. Many individuals and families in Prince George’s County face financial challenges due to unexpected life events like job loss, illness, or divorce. The good news is that Chapter 7 bankruptcy may offer a path to financial relief and a fresh start.

At LeViness, Tolzman & Hamilton, our experienced Chapter 7 bankruptcy lawyers are here to guide you through the process and help you determine whether bankruptcy is the right solution for your situation.

What Is Chapter 7 Bankruptcy, and Who Is Eligible?

Chapter 7 bankruptcy—often referred to as liquidation bankruptcy—is a legal process that allows qualified individuals to discharge most unsecured debts, such as credit card balances, medical bills, and personal loans. Despite the term “liquidation,” most people who file for Chapter 7 in Maryland do not lose their personal property, thanks to the state’s generous exemption laws.

To qualify for Chapter 7, you must either:

  • Have income below the Maryland median for your household size, or
  • Pass a means test, which evaluates your income and necessary expenses.

Additionally, you must complete a credit counseling course from an approved agency before filing. If you’ve filed for Chapter 7 in the past, you must wait eight years from the date of your previous filing to seek another discharge.

How the Chapter 7 Bankruptcy Process Works in Maryland

Filing for Chapter 7 involves several steps, but with the right legal guidance, the process can be efficient and stress-free. Here’s a general overview of what to expect:

  1. Preparation and Counseling

You’ll gather your financial documents and complete a brief credit counseling session, which is required before you file.

  1. Filing the Petition

Once your paperwork is ready, your attorney will file your Chapter 7 bankruptcy petition in the Maryland federal bankruptcy court. This filing immediately activates an “automatic stay,” which halts most collection actions, including lawsuits, wage garnishments, and harassing calls from creditors.

  1. Meeting of Creditors (341 Meeting)

Approximately 30 days after filing, you’ll attend a brief meeting with a bankruptcy trustee. Creditors may attend, but often do not. The trustee will ask basic questions about your finances and verify the information in your petition.

  1. Debt Discharge

If everything is in order, you’ll receive a discharge of your eligible debts typically within 3 to 4 months of filing. This means you are no longer legally required to repay those debts.

What Debts Can Be Discharged Through Chapter 7?

Chapter 7 can eliminate many types of unsecured debts, including:

  • Credit card debt
  • Medical bills
  • Personal loans
  • Utility bills
  • Certain court judgments

However, some debts cannot be discharged, such as:

  • Child support and alimony
  • Most student loans
  • Recent tax obligations
  • Court-ordered fines and penalties

Will I Lose My Property If I File for Chapter 7 Bankruptcy?

This is one of the most common concerns, but in most cases, you will be able to keep your essential property.

Maryland’s exemption laws protect:

  • A portion of equity in your home.
  • Personal vehicles up to a certain value.
  • Retirement accounts and pensions.
  • Household goods, furniture, clothing, and appliances.
  • A wildcard exemption that can be applied to other property.

Your attorney will help you apply the right exemptions to maximize protection of your assets.

What Are the Pros and Cons of Chapter 7 Bankruptcy?

Filing for Chapter 7 bankruptcy is a significant decision, and it’s important to understand both the benefits and limitations.

Advantages of Chapter 7

  • Immediate relief from creditor harassment and wage garnishment.
  • Discharge of most unsecured debts within months.
  • A fresh financial start with no repayment plan.
  • Most filers keep their home, car, and personal belongings.

Potential Drawbacks

  • Your credit score will drop, though many people see improvement within 12–24 months.
  • Not all debts are dischargeable.
  • Any non-exempt valuable assets could be sold to repay creditors.
  • Bankruptcy remains on your credit report for up to 10 years.

Why Work With a Prince George’s County Chapter 7 Bankruptcy Lawyer?

Bankruptcy laws can be complex, and every case is unique. Working with a local bankruptcy attorney ensures that:

  • Your case is filed correctly and efficiently.
  • You take full advantage of Maryland-specific exemptions.
  • All creditor communications are handled on your behalf.
  • You are fully informed about your rights and responsibilities.
  • You have an advocate to guide you through each step of the process.

At LeViness, Tolzman & Hamilton, we take the time to listen to your concerns, explain your options in plain language, and develop a strategy tailored to your financial goals.

Common Myths About Chapter 7 Bankruptcy

Many people hesitate to file for bankruptcy due to outdated or misleading information. Let’s clear up a few common myths:

  • “I’ll lose everything I own.” Most Chapter 7 filers keep all or most of their property thanks to Maryland’s exemptions.
  • “Bankruptcy will destroy my credit forever.” While your credit will be affected, many people begin rebuilding their credit soon after discharge and see improvement within a year.
  • “Only irresponsible people file.” Bankruptcy exists to help good people recover from financial hardship due to unforeseen circumstances.
  • “I’ll never qualify for credit again.” Many individuals receive new credit card or car loan offers within months of filing, though interest rates may be higher initially.

How Chapter 7 Bankruptcy Can Help You Move Forward

Declaring Chapter 7 bankruptcy may be a difficult decision, but it can also be a turning point. Once your eligible debts are discharged, you’ll have the opportunity to rebuild your finances, restore your credit, and regain control over your future.

The bankruptcy process also provides immediate protection from wage garnishments, lawsuits, and creditor harassment, giving you the space to focus on what matters most—your recovery and your future.

Begin Your Path to Debt Relief With the Prince George’s County Chapter 7 Bankruptcy Lawyers at LeViness, Tolzman & Hamilton

Deciding to file for bankruptcy is never easy, but you do not have to go through it alone. The Prince George’s County Chapter 7 bankruptcy lawyers at LeViness, Tolzman & Hamilton stand ready to help you take the first step toward a brighter, debt-free future. Call 800-547-4LAW (4529) or contact us online 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.