Information On Bankruptcy
Chapter 7 And 13 Bankruptcy
Dealing with overwhelming debt can be a challenging and emotionally draining task. Fortunately, you have options for eliminating your debt and securing a fresh financial future. Through either Chapter 7 or Chapter 13, I am able to offer immediate relief from debt such as credit cards, personal loans, judgments or unpaid medical bills. If necessary, I offer same-day filings that help you stop repossessions and foreclosures and put an immediate end to the harassment of creditors and bill collectors, allowing you to focus on getting back on a solid financial track.
Starting Over With A Fresh Start
Dealing with overwhelming debt can be a challenging and emotionally draining endeavor. Fortunately, with the guidance of an experienced lawyer, you may be able to find relief from your debt in as little as three months. I am attorney David Grossman at the Law Office of David M. Grossman, LLC, and I work diligently to provide Baltimore, Maryland, area clients with effective and affordable bankruptcy advice in an effort to stop creditor harassment, end foreclosure proceedings and offer you a fresh financial future.
Bankruptcy – An Overview
Bankruptcy is a legal vehicle that provides relief to individuals in serious financial trouble. Generally, the bankruptcy process assesses the debtor’s assets and liabilities and provides a structure within which the debtor is allowed to keep exempt property while discharging as many eligible debts as possible. Certain debts, like domestic support orders, debt obtained by fraud and most tax debt, are generally ineligible for a discharge in a bankruptcy case.
The traditional stigma of bankruptcy has faded for the most part, and it has been replaced by the view that bankruptcy is a fresh start after a time of financial trouble. Many bankruptcy debtors have experienced unexpected and extreme financial shock that is out of their control, caused by sudden events such as job loss, business failure, death, divorce or illness.
In such cases, filing bankruptcy may be the right answer. If you are facing serious financial challenges, contact the Law Office of David M. Grossman, LLC in Baltimore, Maryland, to schedule a consultation with an experienced bankruptcy attorney who can help you assess your legal options.
Bankruptcy laws are primarily federal, and bankruptcies are administered by the federal courts. However, the various states’ consumer and commercial laws do play important roles in certain bankruptcy issues. In addition, each state has its own list of property exemptions.
Bankruptcy is an available option for individual consumers, businesses, farmers/fishermen and municipalities. There are two major bankruptcy types: liquidation and reorganization. For practical purposes, many individual debtors have so-called no-asset cases where all (or nearly all) of the debtors’ property is exempt from the liquidation requirement and eligible debt is discharged without losing any property.
The Chapter 7 or liquidation bankruptcy allows for the individual debtor to discharge certain debts. Such dischargeable debts include:
- Medical bills
- Credit card debt
- Wage garnishments
- Certain tax debt
Filing for Chapter 7 bankruptcy can also help by stopping:
- Phone calls from collection agencies
- Harassing emails throughout the day
- Mailed bills
- Collectors showing up at your door
- Wage garnishments
- Bank account attachments
- IRS levies and collections
Through my years of experience, I understand the complexities of bankruptcy law. I am able to address the bankruptcy process during an initial consultation. I can explain how bankruptcy can help stop creditors from harassing you. You do not deserve to be threatened and harassed by credit companies.
Chapter 7 of the Bankruptcy Code governs liquidation bankruptcy. Chapter 7 filings are available to both individuals and businesses. Upon the filing of a Chapter 7 bankruptcy petition, the bankruptcy court issues an “automatic stay” that stops most collection proceedings against the debtor. A bankruptcy trustee is responsible for gathering the debtor’s nonexempt property, if any, liquidating it and distributing the proceeds to the creditors in order of legal preference. If there are not enough assets to cover all the debtor’s liabilities, then the creditors of lowest legal priority may only be partially paid, or may be unpaid altogether.
For an individual consumer debtor, these remaining debts are discharged and no longer the responsibility of the debtor. That being said, there are certain types of debt that will survive a bankruptcy proceeding. These include domestic support obligations like child support and alimony, most tax debts and many student loans.
Chapter 13 Reorganization
- Consolidating and reducing your debts into an affordable payment plan
- Stopping foreclosures
- Stopping wage garnishments and removing bank account attachments
- Reducing interest rates and balances owed on car loans
- Eliminating second mortgages and equity lines
Depending on the specifics of your financial situation, consolidating your debt and planning out a payment plan under Chapter 13 bankruptcy may be a better option than a Chapter 7 bankruptcy. The Chapter 13 bankruptcy process allows for the retention of your home and vehicles, offering you the chance to recover without losing important possessions or assets.
The monthly payment amount and the length of time for the repayment plan are based on your monthly income, your monthly expenses, and the amount and nature of the debt you owe. Upon completion of the Chapter 13 repayment plan, you are granted a discharge for your remaining unsecured debts.
Chapter 13 will stop a foreclosure on your home and allow you to get caught up on your mortgage. If you have fallen behind on your mortgage, call me! I may be able to save your home. If you are unsuccessful with a loan modification, I may be able to help. Many of my clients have been approved for loan modifications while in Chapter 13.
Chapter 13 will also allow you stop collection actions on student loan debt. Student loans can be paid in whole or in part under a Chapter 13 plan. However, student loans are not discharged, except in rare cases of undue financial hardship.
A Chapter 13 begins with the filing of a petition, schedules, statement of financial affairs and means test calculation. The filing of a Chapter 13 stops most collection efforts immediately due to the automatic stay. It will also stay all collection actions against a co-debtor on consumer debts. About five weeks after the case is filed, you will have to attend a meeting of creditors administered by a Chapter 13 trustee. I will personally represent you at this meeting of creditors.
Approximately one month later, you will have to attend a confirmation hearing. Again, I will personally represent you at this hearing. Once your plan is confirmed, you will have to make monthly payments to the trustee for the remainder of your plan. The trustee will make monthly payments to your creditors. After you successfully complete your plan, you will be granted a discharge.
A Chapter 13 reorganization bankruptcy is more appropriate where there is sufficient income that can be used to pay creditors, at least in part. Reorganizations are governed by several chapters of the Bankruptcy Code. Chapter 11 generally controls reorganizations for individual debtors with extremely high debts or for business entities. Chapter 13, on the other hand, generally covers most individual consumer debtors.
As in a liquidation bankruptcy, filing for reorganization generates an automatic stay of most collection activity. The debtor then develops a plan to partially repay debts over a three-year to five-year period through a bankruptcy trustee. At the successful conclusion of the payment plan, if certain conditions are met, remaining balances on dischargeable debts are cancelled. If the debtor fails to make payments under the plan, the court may dismiss the case.
Speak To A Bankruptcy Lawyer
Bankruptcy law can benefit debtors and creditors alike, depending on the circumstances. If you feel that bankruptcy may be appropriate for your financial situation, contact Law Office of David M. Grossman, LLC in Baltimore, Maryland, to schedule a consultation with a skilled bankruptcy attorney.
DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.