Declaring Bankruptcy: Chapter 7 Bankruptcy Basics

If you plan to file for bankruptcy in Maryland, the process will require that you pay some fees to the court. These fees will cover the filing and administrative charges associated with your having declared bankruptcy. 

In addition, many people find that they benefit from paying for the services of a Maryland bankruptcy attorney. By hiring an attorney, you can avoid making costly mistakes that are common with filing for bankruptcy. Your attorney can also use their familiarity with bankruptcy in Maryland to advocate that you get to keep your personal property. 

The Chapter 7 bankruptcy process takes about 6 months, during which you will be required to attend credit counseling. To file for Chapter 7 bankruptcy in Maryland, you must submit a petition to a bankruptcy court, as well as fill out several forms. In these forms, you must tell the court about: 

• The property that you own;
• Your monthly and annual income;
• Your current monthly expenses;
• Your outstanding debts; and
• The property which you plan to keep. 

Once Chapter 7 is complete, many of your debts will be discharged. Depending on your payment history, you may be able to keep your home and your car. To find out how bankruptcy in Maryland will affect your personal property, you can get the advice of an experienced Maryland bankruptcy attorney. 

If you are considering filing for bankruptcy in Maryland, visit our article library to learn more about the basics of Chapter 7 bankruptcy.  

If you are facing a personal financial crisis such as the need to declare bankruptcy in Maryland, don’t exacerbate the problem by seeking the services of a so-called bankruptcy “sweatshop” or bankruptcy mill. The Maryland bankruptcy attorney team at Vijayan Law Group isn’t interested in churning out as many cases in a month as possible. Instead, we focus on providing personalized bankruptcy help that is unique to your situation and needs. Contact us today for a free 30 minute consultation – 410-449-0893.

What Happens to My Debts in Chapter 7 Bankruptcy?

When you complete Chapter 7 bankruptcy in Maryland, many of your debts will be discharged, which means that you will no longer have to pay them. However, certain debts cannot be discharged (unless the court rules otherwise). Debts that cannot typically be discharged in a bankruptcy include: 

• child support (in Maryland, Washington, D.C. and elsewhere);
• alimony/spousal support;
• most of your tax debts; and
• student loans. 

Your other debts, such as the loans on your home and car, will be discharged if you are current on your payments. These are secured debts, for which you have pledged collateral, and if you are not current on them, your creditors may repossess them. To find out what property is at risk in bankruptcy, you can get the advice of a Maryland bankruptcy attorney. 

To file for Chapter 7 bankruptcy in Maryland, you must submit a petition to a bankruptcy court. You will need to inform the court about your financial situation, including your income, your current monthly expenses, and the outstanding debts you have. Later, at the meeting of creditors, the court will determine which property you are allowed to keep, and which will go to your creditors. 

Generally, in a bankruptcy in Maryland, you will be allowed to keep most of your possessions. If you are considering filing for bankruptcy in Maryland, visit our article library to learn more about the basics of Chapter 7 bankruptcy.  

Contacting a Maryland Bankruptcy Attorney 

If you are facing a personal financial crisis such as the need to declare bankruptcy in Maryland, don’t exacerbate the problem by seeking the services of a so-called bankruptcy “sweatshop” or bankruptcy mill. The Maryland bankruptcy attorney team at Vijayan Law Group isn’t interested in churning out as many cases in a month as possible. Instead, we focus on providing personalized bankruptcy help that is unique to your situation and needs. Contact us today for a free 30 minute consultation – 410-449-0893.

Does declaring bankruptcy absolve credit card debt?

If you plan to file for bankruptcy in Maryland, know that it may or may not absolve you of your credit card debt. In a bankruptcy proceeding, credit card issuers can challenge the discharge of debts that you owe. In such a challenge, there are two legal issues that a credit card issuer can raise. 

The first issue is if the application to obtain the credit card was submitted with fraudulent information. The second issue is if the card was used without the intention to repay outstanding debts. This second issue is far more commonly raised, and it may affect the discharge of your debts in a bankruptcy in Maryland. 

In deciding whether you intended to repay your credit card debt, a bankruptcy judge will consider things such as: 

• The amount of time between your charges and your filing for bankruptcy in Maryland;
• The number of charges that you made;
• The amount of the charges that you made;
• Your financial situation at the time you made the charges;
• The number of charges you made in a single day; and
• Whether the purchases were luxuries or necessities. 

If you purchased luxury goods valued more than $600 within 90 days of filing, you cannot discharge these debts in a bankruptcy in Maryland. For advice on whether your credit card debts may be discharged in your filing, you can get the professional advice of a Maryland bankruptcy attorney.         

Contacting a Maryland Bankruptcy Attorney 

If you are facing a personal financial crisis such as the need to declare bankruptcy in Maryland, don’t exacerbate the problem by seeking the services of a so-called bankruptcy “sweatshop” or bankruptcy mill. The Maryland bankruptcy attorney team at Vijayan Law Group isn’t interested in churning out as many cases in a month as possible. Instead, we focus on providing personalized bankruptcy help that is unique to your situation and needs. Contact us today for a free 30 minute consultation – 410-449-0893.

Overview of Chapter 7 Bankruptcy (Part A)

If you need to file for personal bankruptcy in Maryland, you will have the option of filing for Chapter 7 bankruptcy. In Chapter 7 bankruptcy, many of your debts may be cancelled. However, you may also have to liquidate property to repay your creditors. For this reason, Chapter 7 is sometimes referred to as liquidation bankruptcy. 

If you are debating whether to file for bankruptcy in Maryland, you can get the professional advice of a Maryland bankruptcy attorney. 

What will Chapter 7 bankruptcy cost me? 

Chapter 7 bankruptcy in Maryland will require you to spend some money in filing and administrative fees. Generally, in Chapter 7 proceedings, you will only appear in court once. The process takes about 6 months, during which you must attend credit counseling. 

Negotiations on the liquidation of your property will involve your creditors. During these negotiations, you may choose to seek the help of a Maryland bankruptcy attorney. While the services of a bankruptcy attorney will require an additional financial output on your end, your attorney’s job is to prevent you from making the common mistakes that end up costing a person more money in the short- and long-term. 

Who is eligible to file Chapter 7 bankruptcy? 

Relatively new bankruptcy laws have made it more difficult for people to file Chapter 7 bankruptcy in Maryland. The new “preferred” method these days is Chapter 13, in which you will restructure your debts, and continue to make payments to a bankruptcy trustee. 

Chapter 7 is available to most US citizens, except to someone that has received a bankruptcy discharge within the past 6 to 8 years. A Maryland bankruptcy attorney can help you determine if you are eligible. 

How do I file Chapter 7 bankruptcy? 

When you choose to file Chapter 7 bankruptcy with the help of a Maryland bankruptcy attorney, they will take the reigns and guide you through the process every step of the way. The first step is to submit a petition to the bankruptcy court. There will be other forms as well, which will ask you to describe your: 

• property;
• income;
• current monthly expenses;
• debts; and
• property which you plan to keep. 

Your Maryland bankruptcy attorney can help you to complete all of the forms to ensure that you do not make any mistakes or leave out any pertinent information. 

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Overview of Chapter 7 Bankruptcy (Part B)

What happens after I file Chapter 7? 

After you file for Chapter 7 bankruptcy in Maryland, an “automatic stay” will stop your creditors from taking further actions against you. This means that, temporarily, your creditors will not be able to foreclose on your home, repossess your car, garnish your wages, or put liens on your property. This often gives people who have been experiencing financial difficulties and stress—not to mention months of harassing phone calls from creditors—a much-needed sense of relief.  

However, you are technically handing your property over to the bankruptcy court. During the Chapter 7 proceedings, you cannot sell or give away any property that you owned when you filed, unless you have the court’s consent. 

At the meeting of creditors, the court will decide what to do with your property. Most of your property is exempt from any action, or may not be worth much to your creditors, and so you will be able to keep it. However, secured debts, in which you have pledged collateral for a loan (such as a home or car), may be in danger. 

If you are behind on your payments for these secured debts, your creditor can request for the automatic stay to be lifted, and make claims on your personal property. This means that they can foreclose on your home, and repossess your car. But if you are current on your payments, you can keep your property, and continue to make your monthly payments. 

Discharging Your Debts 

At the end of Chapter 7 bankruptcy in Maryland, your debts will be discharged. This means that you will no longer be obligated to pay them. Chapter 7 does not discharge debts such as child support, tax debts, or student loans unless the court says otherwise. To find out how bankruptcy in Maryland will affect your personal property, you can consult an experienced Maryland bankruptcy attorney. 

If you are facing a personal financial crisis such as the need to declare bankruptcy in Maryland, don’t exacerbate the problem by seeking the services of a so-called bankruptcy “sweatshop” or bankruptcy mill. The Maryland bankruptcy attorney team at Vijayan Law Group isn’t interested in churning out as many cases in a month as possible. Instead, we focus on providing personalized bankruptcy help that is unique to your situation and needs. Contact us today for a free 30 minute consultation – 410-449-0893.

Should I Declare Bankruptcy?

Deciding whether or not to file for bankruptcy in Maryland is a significant decision. Before you decide, you should speak to a Maryland bankruptcy attorney, and explore your options for budgeting, reallocating, and liquidating your assets to avoid filing for bankruptcy in Maryland. 

An experienced Maryland bankruptcy attorney may be able to negotiate a payment plan with your past-due creditors, so that everyone might agree on some acceptable arrangement. The fact is that bankruptcy will affect your credit for 7-10 years, which will also bar you from obtaining a new mortgage for several years as well as affect the type of credit lines you will qualify for. 

If, however, you have a tremendous amount of outstanding debt and very few assets to your name, then bankruptcy may be the best course of action. In a chapter 13 bankruptcy in Maryland for example, you will arrange a long-term repayment plan with your creditors and financial institutions. This may lower your monthly payments over a course of 3 to 5 years. 

If you are facing a personal financial crisis such as the need to declare bankruptcy in Maryland, don’t worsen the problem by seeking the services of a so-called bankruptcy “sweatshop” or bankruptcy mill. The Maryland bankruptcy attorney team at Vijayan Law Group isn’t interested in churning out as many cases in a month as possible. Instead, we focus on providing personalized bankruptcy help that is unique to your situation and needs. Contact us today for a free 30 minute consultation – 410-449-0893.

How Do I File For Chapter 11 Bankruptcy?

If you want to protect your business from claims by banks and creditors, you may choose to file for chapter 11 bankruptcy. To do so, you should get the help of a Maryland bankruptcy attorney. Your attorney can help you file the required voluntary petition with a Maryland bankruptcy court. Once this petition is filed, you must submit a schedule of assets and liabilities, as well as a statement of financial affairs. 

Once your bankruptcy proceeding has been initiated, you will have 120 days to submit a plan of reorganization. Basically, this plan will suggest a way for you to repay your outstanding debts. It may reduce the total value of your debts, and extend your payments over a longer period of time. 

After you have developed this plan, you must submit it to your creditors. Your creditors may accept this plan, reject it entirely, or submit their own plan of reorganization. When the reorganization plan is confirmed, a Maryland bankruptcy court will need to determine if the plan is feasible. If your reorganization plan is confirmed by the court, your business may emerge from chapter 11 bankruptcy and proceed with business as usual. 

If you are considering filing chapter 11 bankruptcy in Maryland, you can learn more about the process by visiting our article library. 

If you are facing a personal financial crisis such as the need to declare bankruptcy in Maryland, don’t exacerbate the problem by seeking the services of a so-called bankruptcy “sweatshop” or bankruptcy mill. The Maryland bankruptcy attorney team at Vijayan Law Group isn’t interested in churning out as many cases in a month as possible. Instead, we focus on providing personalized bankruptcy help that is unique to your situation and needs. Contact us today for a free 30 minute consultation – 410-449-0893.

Does declaring bankruptcy prevent foreclosure?

If you have insurmountable debts that you cannot pay, and your Maryland home is being foreclosed upon, declaring bankruptcy in Maryland will generally help in preventing home foreclosure. 

Preventing Foreclosure By Declaring Bankruptcy 

If a creditor begins to foreclose on your home, you will receive a notice of the foreclosure proceeding. If the creditor will not accept monthly payments to reinstate the loan, the loan may be called into default, which will accelerate the debt. When a debt is accelerated, you must immediately pay the debt in full. If this occurs, filing for bankruptcy in Maryland may be your only option for preventing home foreclosure. 

Once your bankruptcy in Maryland stops foreclosure proceedings, under a chapter 13 bankruptcy plan you will be allowed to restructure your debt. You will then be able to make monthly payments that will be less than your current payments. By preventing home foreclosure, you will be able to restructure your payments over a longer period of time. 

Bankruptcy in Maryland may be your best option for preventing home foreclosure, however, it is not a decision to enter into lightly. Filing bankruptcy will have a long-term impact on your credit score and your financial future. 

Contacting a Maryland Bankruptcy Attorney 

If you are facing a personal financial crisis such as the need to declare bankruptcy in Maryland, don’t exacerbate the problem by seeking the services of a so-called bankruptcy “sweatshop” or bankruptcy mill. The Maryland bankruptcy attorney team at Vijayan Law Group isn’t interested in churning out as many cases in a month as possible. Instead, we focus on providing personalized bankruptcy help that is unique to your situation and needs. Contact us today for a free 30 minute consultation – 410-449-0893.

What is Chapter 11 Bankruptcy?

If your Maryland business has insurmountable debts, and is unable to make its payments, you have the option of filing for chapter 11 bankruptcy in Maryland. This option is available to every U.S. business, whether is a corporation or a sole proprietorship. To file for chapter 11, you can initiate the process with the professional help of a Maryland bankruptcy attorney. 

Chapter 11 will protect your business from claims by banks and creditors. When you file for chapter 11 bankruptcy in Maryland, you will submit a reorganization plan, which can lower your debts and stretch your payments over an extended period of time. This may allow you to: 

• Obtain new financing for your business;
• Reject and cancel any existing contracts; and
• Protect yourself against property liens and litigation. 

Once a bankruptcy court confirms your reorganization plan you may proceed with business as usual. If, however, your business’s debts exceed the value of its assets, you may in fact lose ownership. In this case, your creditors will gain ownership of the business. Therefore, it may not always be in your best interest to file for bankruptcy in Maryland. A Maryland bankruptcy attorney can suggest the best course for you to take. 

If you are considering filing chapter 11 bankruptcy in Maryland, you can learn more about the process by visiting our article library.  

If you are facing a personal financial crisis such as the need to declare bankruptcy in Maryland, don’t exacerbate the problem by seeking the services of a so-called bankruptcy “sweatshop” or bankruptcy mill. The Maryland bankruptcy attorney team at Vijayan Law Group isn’t interested in churning out as many cases in a month as possible. Instead, we focus on providing personalized bankruptcy help that is unique to your situation and needs. Contact us today for a free 30 minute consultation – 410-449-0893.

Bankruptcy: An Overview Of Chapter 11 (Part A)

If your Maryland business or corporation is faced with debts it cannot pay, you may choose to protect your interests by filing for chapter 11 bankruptcy. In a chapter 11 bankruptcy proceeding, you may maintain control of your business operations while restructuring your debts. And under a chapter 11 bankruptcy plan, your business may re-emerge from bankruptcy in as little as several months. To file for bankruptcy in Maryland, you can get the professional help of a Maryland bankruptcy attorney. 

Who can file for chapter 11 bankruptcy in Maryland? 

Every business, whether it is structured as a corporation or sole proprietorship, can file for chapter 11 bankruptcy in Maryland. Chapter 11 is also available to individuals, though is generally used by businesses and corporations. 

What does chapter 11 bankruptcy do? 

Generally, when you file for chapter 11 bankruptcy, you may remain in control of the business operations as a “debtor in possession.” When a court establishes you as the debtor in possession, you will be subject to the oversight and jurisdiction of the court. This may allow you to: 

• Acquire new financing on favorable terms, by giving new creditors the first right to your business earnings;
• Reject and cancel contracts; and
• Be protected against litigation until matters can be resolved in bankruptcy court. 

If, however, the business’s debts exceed the value of its assets, the ownership and interests of the company will be transferred to the creditors. In this case, once the bankruptcy has been completed, the creditors will take ownership of the newly restructured company. 

To find out if bankruptcy in Maryland is the best option for you to choose, you can consult with a bankruptcy attorney. A bankruptcy attorney can evaluate your business and current interests, and suggest the best course of action for you to take. 

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