• Phone(301) 357-4761
  • Address9500 Medical Center Drive 440-C, Upper Marlboro, MD 20774
  • Open HoursMon- Fri 9:00am - 5:00pm
  • Phone(301) 357-4761
  • Address9500 Medical Center Drive 440-C, Upper Marlboro, MD 20774
  • Open HoursMon- Fri 9:00am - 5:00pm

CHAPTER 7 BANKRUPTCY

Chapter 7

Chapter 7 bankruptcy is liquidation bankruptcy. Those who are eligible can receive a Chapter 7 discharge every 8 years. The entire Chapter 7 Bankruptcy process takes about 3 to 4 months from start to finish in a typical case.

Filing Chapter 7 invokes the automatic stay and gives you immediate relief from your creditors, stops lawsuits, and wage garnishments. Typical debts that can be discharged are credit cards, old rent bills, personal loans, old cell phone bills, pay day loans, vehicle repossessions, debts from a foreclosure, medical bills, as well as numerous other types of debt.

Chapter 7 does require financial eligibility, and there are also asset liquidation considerations. You may need to file for Chapter 13 instead based on income testing and asset liquidation considerations. Not all types of debt can be discharged in Chapter 7. Chapter 13 offers a wider range of debts that can be discharged.

Chapter 7 is means tested, therefore your income and assets affect whether you are eligible for Chapter 7. The means test divides filers into below median and above median incomes.  A debtor that fails the means test for Chapter 7 can usually file Chapter 13 instead. Chapter 13 bankruptcy is an alternative for those who do not qualify for chapter 7 bankruptcy.

Technically, any attorney could handle your Chapter 7, but it is not a good idea just to get any lawyer to do so because you only have one shot to make sure your case isn’t mishandled, as there can be unexpected consequences. It is extremely important to hire an attorney who is knowledgeable about bankruptcy rules and nuances, including rapidly changing laws, to give you the best chance at claiming the full benefits of bankruptcy.