CHOOSING CHAPTER 7 BANKRUPTCY

Chapter 7 bankruptcy (also called a "straight bankruptcy" or a "liquidation") is the simplest and most common way to a fresh start. One of the more desirable benefits of a Chapter Severn petition is the Affects of Bankruptcy are not prolonged over a repayment plan.

Technically a Chapter 7 bankruptcy requires the debtor's assets to be taken and sold so that the proceeds can be distributed to the debtor's creditors. One of the biggest Bankruptcy Myths is you'll lose everything you own should you file bankruptcy. In practice many debtors who file Chapter 7 do not lose any of their property, or lose very little. The are primary two reasons for this:

• 1) If you have no equity in a property, it has no value. If it has no value, it will not be taken from you
• 2) Many important exemptions exist to protect consumers. The most important exemptions for most Maryland consumers are the following:
  • homes (many married people may keep their homes even if they have substantial equity)
  • retirement and pension funds
  • $5,000 of tools of the trade
  • personal injury awards, payable to the extent for pain and suffering
  • $1,000 in household goods
  • $11,000 of any other property
  • Note: Exemptions are different in D.C. & Virginia

While there are limitations to these exemptions, many consumers are able to keep all of their belongings while reducing or eliminating their debt. An attorney with our Law Firm can assist you in properly Preparing for Bankruptcy in addition to helping you understand what you can and cannot accomplish using the Chapter 7 code. You should be aware that certain debts such as tax bills less than three years old (from the due date), child support, or alimony cannot be eliminated by filing Chapter 7 bankruptcy. Also, in most cases, student loans are not dischargeable. Inquire now to schedule a no-obligation consultation, or just give our office a call at (301) 816-9550 for more information.

PLEASE NOTE: BOTH A CHAPTER 7 AND CHAPTER 13 BANKRUPTCY WILL PUT A STOP TO ANY CREDITOR HARASSMENT, LAWSUIT, WAGE GARNISHMENT, OR FORECLOSURE.

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The Law Office of Timothy J. Sessing is experienced in helping you eliminate your debt.  Contact us now for a free initial consultation at 301-816-9550 in Rockville and Frederick, Maryland.

If you would like help in deciding whether filing for Bankruptcy is the right course for you, visit the Bankruptcy Info Sheet.

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