What is a Chapter 7 Bankruptcy?

A Chapter 7 Bankruptcy is simply a means of erasing debt for everyday people like you and I. People will often choose to file a Maryland bankruptcy under this section of the Bankruptcy Code when the majority of their debt consists of unsecured debt like bank credit cards, medical bills, store charge cards, etc.

The pandemic has made life more difficult for most of us, but it has caused a serious financial hardship for many of us. If anyone was having a hard time before the pandemic, things are only worse now. A Chapter 7 Maryland bankruptcy can help.  

If your income and/or your monthly expenses indicate that you are a candidate for a chapter 7 Maryland bankruptcy, you can usually expect a discharge of your debt within three to four months of filing. You are also able to stop garnishments once you file.

You may even be able to recover some of the money that was taken from you! if you have questions, call us. We can walk you through the whole process from beginning to end. It’s an intimidating subject but once you come in for a consultation, you will understand that it’s not as scary as you may have thought.

Maryland Bankruptcy

Chapter 7 vs Chapter 13

A chapter 7 bankruptcy can help you liquidate your debt and once the case is filed, is typically open for three to four months on average. It does not give you the time you might need if you have to catch up on debt like car loans or a mortgage. If you are behind on your mortgage or other secured loans, a chapter 13 Maryland bankruptcy can help you recover. Under a chapter 13 bankruptcy you will have up to five years to catch up on past-due loans like your mortgage or car note.

If you have debt that would otherwise take a decade to get rid of, why not file? It’s nothing to be ashamed of. See some of the most common myths about Maryland bankruptcy.