There are three chapters of bankruptcy that cover individuals: Chapter 7, Chapter 11, and Chapter 13. Each one has different requirements and benefits. A qualified lawyer can help you determine which chapter is right for you and guide you through the process.
This Article Will Discuss The Three Chapters In More Detail And What a Lawyer Can Do To Help.
Chapter 7 Bankruptcy
Chapter 7 is the most common type of bankruptcy. It is also known as a fresh start or straight bankruptcy. This type of bankruptcy will eliminate most, if not all, of your debts.
To qualify for Chapter Seven, you must pass the means test. The means test compares your income to the median income in your state. If your income is below the median, you will qualify.
While going through Chapter Seven, some things to consider are that you may lose your home and other property. You will also have to give up your nonexempt assets.
A lawyer can help you keep your exempt property and advise you on whether or not to file for Chapter 7 bankruptcy. A chapter 7 bankruptcy lawyer in Maryland will offer the following services:
-Help you understand the means test and how to qualify
-File your bankruptcy petition
-Attend the 341 meeting with you
-Represent you in court if necessary
The 341 meeting is the meeting of creditors. It is where your creditors will have the opportunity to ask you questions about your bankruptcy. A Chapter Seven bankruptcy will stay on your credit report for ten years.
While a Chapter 7 bankruptcy will eliminate most of your debts, some debts cannot be discharged. These include child support, alimony, student loans, and taxes. Even after your bankruptcy is complete, you will still be responsible for these debts.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is a reorganization bankruptcy. Businesses most commonly file it, but individuals can file it.
A business or individual that files for Chapter 11 bankruptcy protection usually does so because they cannot repay their debts. Under Chapter 11, the debtor (the person or business who owes money) creates a plan to repay creditors over time.
To be eligible to file for Chapter 11, the debtor must have a regular source of income. The debtor must also file certain documents with the court, including a list of creditors, a schedule of assets and liabilities, and a statement of financial affairs.
If you consider filing for Chapter 11 bankruptcy protection, it is essential to speak with an experienced chapter 11 bankruptcy lawyer in Annapolis MD. They can help you determine if Chapter 11 is suitable for your situation and guide you through the process.
Chapter 13 Bankruptcy
It is filed by individuals who have a source of income and wish to repay their debts. A Chapter 13 bankruptcy repayment plan must be proposed to the court and approved before the individual can file for bankruptcy protection. The repayment plan must be based on the debtor’s ability to repay and include all disposable income.
Chapter 13 bankruptcy can effectively save your home from foreclosure and eliminate or reduce other debts.
Final Words
When you are in over your head with debt, it is essential to know that you have options. An experienced bankruptcy lawyer can help you determine which chapter of bankruptcy is suitable for your unique situation and guide you through the process.