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.