Chapter 7 Bankruptcy

Making the Most of Your Rights in Chapter 7 Bankruptcy

Chapter 7 offers the broadest relief available under the Bankruptcy Code. You can get a complete release ("discharge") of most unsecured debts, keep your exempt assets, walk away from secured debts upon surrender of the collateral, reaffirm secured debts if you want to keep the property subject to repossession, and then get down to the work of reestablishing your credit.

Not everyone qualifies for Chapter 7 bankruptcy relief, however, and some people who do qualify will be better off in a Chapter 13 case anyway. For comprehensive advice and client service through all stages of consumer bankruptcy, contact a knowledgeable lawyer at The Fried Law Firm in Bethesda.

Call 866.439.0886 for bankruptcy advice in Maryland and metro Washington

The first question in a possible Chapter 7 case isn't whether you're eligible — it's whether it will do you any good. Our lawyers don't assume that bankruptcy is necessarily the right move for our clients, and we help you think through the decision on the basis of your overall financial picture: assets, debts, income and expenses. We also help you choose between Chapter 7 and Chapter 13.

One key consideration concerns your ability to exempt your property from the claims of creditors. Exemptions represent a basic bankruptcy right designed to ensure that the debtor has a decent chance to make the most of the fresh start after discharge. Unfortunately, anyone with significant equity in a homestead or valuable nonexempt assets will probably need to file under Chapter 13 in order to avoid surrendering the property to your Chapter 7 trustee.

Most people who meet the income standards of Chapter 7 — net income below the state median — will also have little or nothing by way of nonexempt assets to give the trustee. These are known as no-asset cases, so that the debtor gives nothing to the trustee, who gives nothing in turn to unsecured creditors.

Chapter 7 bankruptcy is relatively simple, and the entire process lasts four to six months for most people. Not all debts are dischargeable in Chapter 7 — student loans, recent taxes, alimony or child support obligations, and debts contracted through fraud are all nondischargeable, either by definition or on the motion of the creditor. We'll take the time to explain just what can and can't be discharged in your case.

No matter which chapter of the Bankruptcy Code you file under, you'll notice relief from creditor pressure immediately. Garnishment, foreclosure, repossession and other collection efforts come to a complete stop. Your creditors can't even call you on the phone.

With decades of practical experience in the bankruptcy courts of Maryland and the District of Columbia, Michael Fried's insights into the finer points of Chapter 7 can benefit you on credit card debt, tax problems, medical expenses, and other financial pressures. For additional information, contact an attorney at The Fried Law Firm in Bethesda.

The Fried Law Firm, P.A., is a federally-designated Debt Relief Agency, which proudly helps people filing for bankruptcy.