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Chapter 7 Bankruptcy • Chapter 13 Bankruptcy
The Law Office of David M. Grossman, LLC
201 N Charles St, Suite 1504
Baltimore, MD 21201
Phone: (410) 752-6088
Personal Bankruptcy • Same-day filing • Counseling certification referral • Chapter 7 • Chapter 13 • One-stop bankruptcy shop Same-day bankruptcy filing stops creditors’ collections immediately
Chapter 7: Chapter 7 bankruptcy is personal bankruptcy that eliminates your consumer debt, but allows you to reaffirm debts you may want to keep – typically a mortgage and one car. Some debts may be exempt from bankruptcy protection. Frequently people find themselves under pressure and struggling with debt. In these situations, you may want to completely eliminate the debt and start fresh. Chapter 7 can eliminate or "discharge" most of your debts. In many instances, you will be able to keep your home and car as long as you are current on your loan and you continue to make your payments. Immediately upon filing a bankruptcy petition, an "automatic stay" goes into effect. This "automatic stay" stops all collection activity including telephone calls, letters, collection agencies, lawsuits, wage garnishments, and bank account attachments. However, in some cases this protection may not be permanent.
The entire Chapter 7 process lasts approximately 8-10 months. In order to file for Chapter 7 Bankruptcy you need to file a petition along with numerous other forms and "schedules" which describe your property, income, living expenses, debts and property claimed as -exempt- (property you will be allowed to keep). During the bankruptcy process, the Court obtains legal control of your property (except your exempt property, which is yours to keep). The Court appoints a person called a "trustee" for each bankruptcy case filed. The trustee will be concerned with what property you own. The trustee can take your property that is not exempt and sell it in order to pay creditors. However, in most cases people do not lose property. You will be required to attend one hearing called a "meeting of creditors" during which the trustee will ask you questions. Creditors are allowed to attend and can also ask you questions. At the conclusion of the case, you are granted a "discharge" and you no longer owe on your bills. Certain types of debts are "nondischargeable" and will not be eliminated by filing chapter 7. You cannot file for Chapter 7 bankruptcy again for another eight years from the date of your filing.
Chapter 13: Chapter 13 is frequently used to stop the foreclosure of a house and catch up on missed mortgage payments. It can also be used to stop repossessions. In addition, Chapter 13 can pay past due state and federal income taxes and stop interest from accruing. Chapter 13 bankruptcy enables a person to consolidate his or her bills into a three to five year monthly payment plan. The amount of the monthly payment and the length of the repayment plan are based upon the monthly income of the person, the monthly expenses of the person, and the amount and nature of the debt. Upon completion of a Chapter 13 repayment plan, you are granted a "discharge," which can eliminate certain unsecured debts that were discussed in your plan.
The Law Office of David M. Grossman, LLC
201 N Charles St, Suite 1504
Baltimore, MD 21201
Phone: (410) 752-6088
Contact Us
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Serving Baltimore City and the greater Baltimore metropolitan area, including Baltimore County and the cities of Rosedale, Garrison, Randallstown, Parkville, Overlea, Kenwood, Fullerton, Essex, Riviera Beach, Dundalk, Arbutus, and Ellicott City, Pikesville, Owings Mills, Maryland
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