Chapter 7 Bankruptcy: A Fresh Start
Chapter 7 is what most people think of when they hear about bankruptcy. I like to call it fresh start bankruptcy! Basically, Chapter 7 is for individuals who don’t earn enough money to make ends meet. Sound like you?
To qualify for a Chapter 7 Bankruptcy, you must be able to show that you can barely afford your living expenses and there is no money left over each month to pay your other bills (credit cards, loans, medical bills, etc). Your gross household income must also be below Maryland’s medium income level for a household of the same size. This is called passing the means test. The value of your assets/personal belongings must not exceed a certain number i.e. you have no non-exempt assets. Lastly, if you filed a chapter 7 before, you can’t file another chapter 7 until a full 8 years has passed from the first chapter 7 filing date.
Chapter 7 Bankruptcy process takes approximately 90 to 100 days (from case filing date to the entry of a discharge of debts).
Benefits of a Chapter 7 Bankruptcy
- Stops creditor calls and harassment
- Stops law suits
- Stops wage garnishments (you may even get some money refunded!)
- Stops repossessions
- Clears past due utility bills
- Lifts a license suspension
- Helps to rebuild your credit
- Gives you the fresh start that you deserve
Debts that are NOT discharged in a Chapter 7 Bankruptcy
- Child support
- Most taxes
- Criminal fines, MVA fees
- Student loans
- Personal injury awards as a result of your drunk driving
- HOA/Condo fees and dues incurred after case filing
- Debts procured by fraud
Filing for Bankruptcy is a complicated process. It involves federal and state law. That is why you should NOT attempt to file a case on your own, nor should you engage the services of a bankruptcy petition preparer. Call the Law Office of Starla J. Hudachek (410) 560-7455 for a free consultation. I will help you determine if Chapter 7 Bankruptcy is the right solution for your financial problems.