Queen Anne’s County Bankruptcy Lawyers
Just because you are deep in debt today does not mean that this will define your financial future. Federal bankruptcy law offers protections that can provide relief from overwhelming debt, including the potential to have certain unsecured debts discharged. While bankruptcy may require surrendering some personal property, it can give you the opportunity to start fresh and regain control of your financial life.
At LeViness, Tolzman & Hamilton, our Queen Anne’s County bankruptcy lawyers help clients evaluate their financial situation and determine whether bankruptcy is the right option for relief.
Why Should I Consider Bankruptcy?
Many individuals hesitate to file for bankruptcy due to concerns about social stigma or personal embarrassment. While bankruptcy is a matter of public record, it exists to protect individuals from debt they cannot realistically repay.
Without bankruptcy, creditors may continue collection efforts, including phone calls, letters, lawsuits, or wage garnishments. Bankruptcy provides legal protection from these actions and offers a path to regain financial stability.
Do My Creditors Stop Contacting Me When I File Bankruptcy?
Yes. Once you file for bankruptcy, an automatic stay goes into effect under federal law. This stay stops creditors from contacting you, filing lawsuits, or attempting to collect on your debts. Violating the automatic stay can result in serious penalties for creditors, giving you immediate relief from collection efforts.
Will I Lose My Property in Bankruptcy?
Bankruptcy may require surrendering some assets, but federal and Maryland law provide exemptions to protect certain property:
- Homestead exemption: Protects up to $25,150 in equity in your primary residence per debtor in most Maryland counties
- Personal property and jewelry: Up to $5,000 in personal property and $1,500 in jewelry
- Tools of the trade: Up to $5,000 for items necessary for your profession
- Vehicle exemption: Up to $5,000 in equity for one vehicle
- Wildcard exemption: $5,000 that can apply to any type of property
Certain assets, such as pensions and retirement accounts, are fully protected in bankruptcy. An experienced attorney can advise you on which property is exempt and which may need to be surrendered.
Are All Debts Dischargeable in Bankruptcy?
Many debts are eligible for discharge, particularly unsecured debts, which are debts not tied to property. Examples include:
- Credit card balances
- Medical bills
- Personal loans
- Past-due utility bills
- Certain older federal or state income taxes that meet specific criteria
Some debts are not dischargeable, including:
- Secured debts, such as mortgages or car loans (unless property is surrendered)
- Child support and alimony obligations
- Recent tax debts that do not meet specific criteria
- Most student loans
A bankruptcy attorney can help you understand which debts can be discharged in your case.
What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is the most common type of personal bankruptcy. It allows eligible individuals to have qualifying debts discharged relatively quickly, providing a fresh financial start. While some non-exempt property may need to be surrendered, Chapter 7 can relieve overwhelming unsecured debts and stop creditor collection efforts.
What Are the Practical Effects of Bankruptcy?
Bankruptcy will appear on your credit report for up to seven years and will initially impact your credit score. While it may be more difficult to obtain new credit immediately, these effects are often outweighed by relief from persistent creditor actions, such as lawsuits or wage garnishments. Over time, it is possible to rebuild your credit and achieve financial stability.
Do I Need a Lawyer for Bankruptcy?
Yes. Bankruptcy is a complex legal process involving court filings and interactions with a bankruptcy trustee. Errors or omissions on your filing can delay or even jeopardize your case. A qualified bankruptcy attorney can:
- Advise you on your eligibility for bankruptcy
- Prepare and file all necessary paperwork accurately
- Represent you in meetings with the trustee
- Ensure your rights are protected throughout the process
Contact Our Queen Anne’s County Bankruptcy Lawyers at LeViness, Tolzman & Hamilton
If you are struggling with overwhelming debt, speak with our Queen Anne’s County bankruptcy lawyers at LeViness, Tolzman & Hamilton. We can evaluate your situation and provide guidance on bankruptcy options during a free initial consultation. Schedule an appointment by filling out our online contact form or calling 800-547-4LAW (4529). Our offices are located in Baltimore and Owings Mills, Maryland, and we serve clients throughout the state.