BANKRUPTCY
Filing bankruptcy can enables you to get back on your feet. If your debts are unmanageable, bankruptcy might be the right choice for you. Our goal is to help you through this process in your time of financial distress. We recommend you hire a lawyer in this situation because it is in your best interest. The bankruptcy process requires you to fill out paperwork, file documents, adhere to court-mandated deadlines, respond to court orders and perform other duties that can be challenging to without legal expertise.
We file bankruptcy petitions in Virginia and Maryland. Our expertise includes Chapter 7 and Chapter 13 bankruptcies.
Chapter 7 | Bankruptcy Attorney in VA | MD
In tough economic times or in times of personal difficulty, finances tend to suffer.
House prices fall, you are late on mortgage payments or bills simply pile up. In such
circumstances, Bankruptcy may be an option to relieve the financial strain.
The most common type of Bankruptcy provision is chapter 7 filing.
Chapter 7 Bankruptcy
This is beneficial for people who have high unsecured debts
like medical bills,credit card debt and unsecured personal loans.
Usually an automatic stay goes into effect immediately, stopping creditors
and debt collectors. It protects filers from all forms of collection including
repossession, foreclosure, garnishment and lawsuits. A Chapter 7 bankruptcy case
is relatively quick; typically, a case will be completed and the debtor will receive
a discharge within three months of the filing of the bankruptcy petition. Most unsecured
debts are discharged and you won't ever have to repay them.
Chapter 7 bankruptcy is often referred to as a "liquidation" bankruptcy
because a bankruptcy trustee can liquidate (sell) a filer's non-exempt assets
to cover part of the outstanding bills they owe.
Who can file for Chapter 7?
Chapter 7 bankruptcy is intended to provide relief for people who have a lot of
unsecured debt (debt like credit card debt, medical bills, past due utility bills,
unsecured personal loans) and don't have a sufficient income or assets to make good on that debt.
What Debts are not discharged in Bankruptcy?
Not all debts are discharged in bankruptcy. Debts such as child support, spousal maintenance,
and most tax debts are not discharged. Also, Student loans are not discharged unless you can prove
that repaying the debt would be an undue burden.
What's the Difference Between Secured and Unsecured Debt?
Secured debts are secured by a lien of some type on your property, either by an agreement
or involuntarily with a court judgment or taxes. Unsecured debts are not connected to any type
of property. A car loan and mortgages are examples of secured debts, while credit cards and signature
loans are unsecured debts.
How Long Does a Bankruptcy Stay on My Credit Report?
A bankruptcy can stay on your credit report for up to 10 years. Keep in mind: In many cases,
filing bankruptcy winds up improving a person's credit.
When Can I Apply for New Credit?
You can apply for credit any time after filing bankruptcy, but the decision of whether to grant you credit or not varies from creditor to creditor.
Why is hiring a lawyer vital?
Sometimes, bankruptcy petitioners are hesitant to hire a lawyer to help them with their cases, seeing legal guidance as an unnecessary expense. But working with a bankruptcy lawyer is in your best interest. The bankruptcy process requires you to fill out paperwork, file documents, adhere to court-mandated deadlines, respond to court orders and perform other duties that can be daunting to someone without a legal degree.