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Choosing Between Chapter 7 and 13


Looking into Bankruptcy Chapters 7 and 13

In general, a bankruptcy filing can open doors to a fresh start in life and opportunities to rebuild your financial future. It can help debtors repay their debts to creditors, albeit through different ways. Due to the continuous effects of the pandemic to the economy, many families and companies are struggling with debt and financial problems. Filing bankruptcy remains to be an open option, although not a lot are really informed of what such a filing entails.

If you need preliminary bankruptcy information or would like to know how to file for bankruptcy, contact our credible Rockville, MD bankruptcy attorneys. Whether it’s bankruptcy, business law, real estate, or other legal matters, the Kurland Law Group provides sophisticated legal services throughout Maryland.

Our top-notch attorneys in Rockville, MD strive to create lasting attorney-client relationships with our clients. Resolve your financial issues and finally have a fresh start at life.

What this article will focus on are bankruptcies under Chapter 7 and 13. Specifically, it will look briefly answer the following queries:

  • Why is legal help necessary for bankruptcy cases?
  • I am considering bankruptcy, what are my options?
  • When is filing bankruptcy under Chapter 13 advisable?
  • When is declaring bankruptcy under Chapter 7 a better option?
  • How can a local attorney help with my would-be bankruptcy case?

Why is legal help necessary for bankruptcy cases?

bankruptcy 7 vs 13

If you wish to prevent lenders and debt collectors from contacting or harassing you, a bankruptcy petition will enable you to benefit from the automatic stay. Getting reliable legal assistance is necessary, since bankruptcy proceedings can be quite overwhelming.

A diligent bankruptcy lawyer in Maryland can help you with the following:

Explaining the entire bankruptcy process

A reliable local attorney can give comprehensive legal advice and help you fill out bankruptcy forms. He or she can assist as you prepare the necessary paperwork and supporting documents as well.

Additionally, your lawyer can help you go through the scheduled Meeting of Creditors and subsequent confirmation hearing. These must be taken very seriously, since they can influence the outcome of the bankruptcy case.

Preparing you before you deal with bankruptcy trustees

After committing to a filing and deciding on the filing chapter, you will need a lawyer who can help document your eligibility to a bankruptcy trustee. The latter will then administer proceedings brought to court.

Discussing your finances, goals, and priorities

Our law office offers robust bankruptcy strategies that suit your needs. We can also provide non-bankruptcy strategies and legal services that will allow you to stop foreclosure, address student loan debt, and resolve other complex financial problems.

Talk about your non-exempt assets and discuss your debt reorganization plans, if any. Clarify what can be done to have certain types of debt forgiven, be allowed to repay secured and unsecured debts while retaining your assets, or both. 

I am considering bankruptcy, what are my options?

Before you can declare bankruptcy, there are many bankruptcy rules and requirements that you must be aware of. Depending on your eligibility, there are different types of bankruptcy that you may choose from.

Chapter 13 bankruptcy petition

Here, you can essentially avoid foreclosure and repossession by proposing a payment plan to the bankruptcy court. If you are qualified, you will have the chance to restructure your overwhelming debts and bring current payments for secured debts. Most of the time, the debt repayment plan will run for three or five years.

Chapter 7 bankruptcy proceedings

If you require debt relief, a trustee in bankruptcy could liquidate your non-exempt assets to pay off priority lenders. Under relevant bankruptcy laws, your monthly income and living expenses will determine your eligibility as a filer. Unless you pass the bankruptcy means test, you will not be qualified to file bankruptcy under this chapter.

The legal process of filing bankruptcy can be complicated. A hands-on and hardworking Rockville bankruptcy lawyer can answer your questions.

When is filing bankruptcy under Chapter 13 advisable?

If you are from Rockville, MD and are considering bankruptcy, call our compassionate and competent bankruptcy lawyers in Maryland. We can help you decide on which options best fit your goals and financial standing.

If your unpaid debts are accumulating but you have non-exempt properties that you would want to keep, selling your assets to pay back your lenders is not your only option. There are certain programs and bankruptcy alternatives that might work given your situation.

Opting for reorganization

Filing Chapter 13 is often the best choice for those who want to settle their unpaid debts without liquidating their assets. However, it is also known as repayment plan or wage earner’s bankruptcy given the income requirement.

Under a Chapter 13 petition in bankruptcy, you can save most of your assets through a court-approved debt repayment plan. In most cases, set monthly payments must be made for a period of three to five years

The Kurland Law Group is dedicated to providing all-inclusive legal services across a broad spectrum, tailored to meet the needs of individuals as well as small to medium-sized businesses in Maryland and beyond. Our Rockville-based law firm is recognized for its unparalleled experience and superior client service.

When is declaring bankruptcy under Chapter 7 a better option?

Bankruptcy allows you to repay your debts and aim for a debt-free life. As with anything else, however, there are a lot of myths about what your life will be like after bankruptcy. Indeed it would not be the same, but that would come with advantages as well. For you to know which is fact from fiction, seek legal assistance from a trusted law office.

A Chapter 7 petition in bankruptcy, for instance, generally stays on your credit history for a full ten years. It will significantly affect the level of your creditworthiness. Despite the impact on your credit score, however, there are many concrete steps that can help you improve your life after bankruptcy.

Opting for liquidation

In general, a Chapter 7 bankruptcy petition is considered as the fastest and most common type of bankruptcy. It facilitates a liquidation of assets to pay off creditors, and can help immediately stop wage garnishment, repossession, and other creditor actions. It can let you obtain a fresh start by eliminating most consumer debt, although it is seldom advisable for those with many assets.

Before bankruptcy proceedings are finalized, it is best to have thorough discussions with your lawyer. With more than 20 years of experience, firm founder Sari K. Kurland provides clients with an opportunity to resolve overwhelming debt problems. We understand the challenges individuals and families face while struggling with debt and other legal issues.

How can a local attorney help with my would-be bankruptcy case?

When deciding on the bankruptcy chapter that is most suited for you, discuss the following with your attorney:

The different types of bankruptcy

If your bankruptcy attorney in Maryland is aware of the amount and types of debt that you are dealing with, he or she can help you decide on how to proceed accordingly. As such, it is vital to learn about the benefits of each bankruptcy chapter and what to expect during and after filing.

It is also vital to list down your debts, especially if they include child support, alimony, student loans, fines, or recent taxes that most likely cannot be discharged or forgiven. Tell your lawyer if you wish to keep specific assets or are behind your mortgage payments. Specify if you have a co-signer on any account in arrears and if you want your co-signer protected while you pay off what you owe.

The debts you owe and any previous filings

There are certain cases where declaring bankruptcy is not the best choice, or if it is not entirely feasible. Be sure to mention if a petition in bankruptcy had been filed in recent years, or if a bankruptcy petition was dismissed because of failure to appear or comply with a court order. Be transparent with your lawyer when it comes to these things, since other debt-relief options may also be considered.

Explain to your attorney your regular income, total unsecured debt, total secured debt, and details on your tax filings. The amount and types of debt you owe will influence the chapter that must be filed. Additionally, when you are informed of the different implications, you are capable of making smart decisions that can reshape your financial future.

Contact our Maryland Bankruptcy Law Office Today

Kurland Law Group specializes in the different types of bankruptcy filings and what filers can do to maximize their gain. A dedicated and hands-on legal professional from our Rockville bankruptcy law firm will gladly assist you with any legal matters concerning bankruptcies.

Seeking legal assistance from a trusted local attorney is key to avoiding stressful proceedings. The experienced Maryland bankruptcy attorneys of Kurland Law Group understand the hesitation many people have when considering filing for bankruptcy. Contact us today!

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