Owings Mills Chapter 7 Bankruptcy Lawyers
If you feel overwhelmed by debt, Chapter 7 bankruptcy may provide the fresh financial start you need. Known as “liquidation bankruptcy,” Chapter 7 allows many unsecured debts to be discharged, offering meaningful relief for individuals in financial distress. An experienced Owings Mills Chapter 7 bankruptcy lawyer can guide you through the process, protect your rights, and help you make the most of the legal protections available.
What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is a legal process that allows individuals to eliminate certain types of debt. In exchange, the bankruptcy trustee may liquidate non-exempt assets to repay creditors. Fortunately, most people who file for Chapter 7 in Owings Mills can retain many — if not all — of their assets through exemptions allowed by Maryland or federal law.
Do I Qualify for Chapter 7 Bankruptcy in Owings Mills?
To qualify for Chapter 7, you must pass the means test, which compares your income and allowable expenses to determine if you are eligible. The test considers:
- Your household income
- Family size
- Average median income in Maryland
- Necessary living expenses
- Prior bankruptcy filings
If your income is below the state median for your household size, you typically qualify. Even if your income is higher, you may still be eligible depending on your expenses.
What Property Can I Keep in a Chapter 7 Bankruptcy?
Chapter 7 doesn’t mean losing everything. Maryland law allows for a variety of bankruptcy exemptions, and federal exemptions are also available in some cases. Exemptions help protect specific types and amounts of property from being sold in bankruptcy.
Common exemptions in a Maryland Chapter 7 bankruptcy include:
- Up to $25,150 in equity in your primary residence (homestead exemption)
- Up to $1,000 in household furnishings, clothing, appliances, and other essentials
- Qualified retirement accounts
- Public benefits such as Social Security, veterans’ benefits, Workers’ Compensation, and unemployment
- Insurance proceeds (in limited situations)
- A “wildcard” exemption of up to $6,000 for other personal property
These protections often allow Owings Mills residents to retain most — if not all — of their assets while discharging qualifying debts.
What Debts Are Forgiven in Chapter 7?
Most unsecured debts can be discharged, including:
- Credit card balances
- Medical bills
- Personal loans
- Some utility bills
However, some debts typically cannot be discharged through Chapter 7, such as:
- Student loans (except in very limited hardship cases)
- Child support and spousal support
- Most tax debts
- Court-ordered fines or restitution
An Owings Mills Chapter 7 bankruptcy lawyer can review your debt profile and explain which obligations can be discharged.
What Happens During the Bankruptcy Process?
Here’s what to expect during a typical Chapter 7 case in Owings Mills:
- Filing the Petition: Your attorney will prepare and file the bankruptcy petition with the federal court.
- Automatic Stay: Upon filing, an “automatic stay” halts creditor actions like collections, wage garnishments, and foreclosures.
- Assignment of Trustee: A court-appointed trustee will oversee your case and evaluate non-exempt assets.
- 341 Meeting of Creditors: You’ll attend a brief meeting with the trustee (and possibly creditors) to verify the accuracy of your petition.
- Financial Education: You must complete a certified financial management course.
- Debt Discharge: If approved, most of your qualifying debts will be officially wiped out, typically within 4–6 months.
How Long Does Chapter 7 Bankruptcy Take?
Most Chapter 7 cases in Owings Mills take about 4 to 6 months from filing to discharge. The exact timeline may vary depending on court scheduling, the completeness of your documentation, and whether any issues arise during the case. With proper preparation, the process can move quickly, providing prompt relief.
Why You Should Hire an Owings Mills Bankruptcy Lawyer
Bankruptcy law is complex, and mistakes—even honest ones—can result in delays, denial of discharge, or even allegations of fraud. An experienced Owings Mills bankruptcy lawyer can:
- Determine if you qualify for Chapter 7.
- Prepare and file your bankruptcy petition.
- Maximize your exemptions to protect your property.
- Communicate with the trustee on your behalf.
- Represent you during hearings.
- Avoid pitfalls that could harm your case.
Having legal guidance can significantly improve the outcome of your case and give you peace of mind throughout the process.
Contact the Owings Mills Chapter 7 Bankruptcy Lawyers at LeViness, Tolzman & Hamilton Today
The Owings Mills Chapter 7 bankruptcy lawyers at LeViness, Tolzman & Hamilton are ready to help you pursue a fresh start. We offer personalized guidance and committed representation through every step of the bankruptcy process. To schedule a free consultation, call us at 800-547-4LAW (4529) or contact us online.
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.