Filing For Chapter 7 Or Chapter 13 Bankruptcy

CHAPTER BY CHAPTER---
WHICH ONE'S BEST FOR YOU?

One thing about Bankruptcy Law that confuses many consumers when filing is the number of Chapters of the Bankruptcy Code, and from which to choose. Although there are several possibilities, most consumers work with their Attorneys to choose between Chapter 7 and Chapter 13. While the cost of a bankruptcy petition will vary by the complexity of your case, we offer a free consultation service that can accurately answer what filing for bankruptcy will cost you. Contact our offices today at (301) 881-8895 or simply complete our comprehensive Bankruptcy Questionaire.

Choosing Chapter 7 Bankruptcy

Chapter 7 bankruptcy (also called a "straight bankruptcy" or a "liquidation") is the simplest and most common way to a fresh start. One of the more desirable benefits of a Chapter Severn petition is the Affects of Bankruptcy are not prolonged over a repayment plan.

Technically a Chapter 7 bankruptcy requires the debtor's assets to be taken and sold so that the proceeds can be distributed to the debtor's creditors. One of the biggest Bankruptcy Myths is you'll lose everything you own should you file bankruptcy. In practice many debtors who file Chapter 7 do not lose any of their property, or lose very little. The are primary two reasons for this:

1) If you have no equity in a property, it has no value. If it has no value, it will not be taken from you.
2) Many important exemptions exist to protect consumers. The most important exemptions for most Maryland consumers are the following:

homes (many married people may keep their homes even if they have substantial equity)

retirement and pension funds
$5,000 of tools of the trade
personal injury awards, payable to the extent for pain and suffering
$1,000 in household goods
$11,000 of any other property
Note: Exemptions are different in D.C. & Virginia

While there are limitations to these exemptions, many consumers are able to keep all of their belongings while reducing or eliminating their debt. An attorney with our Law Firm can assist you in properly Preparing for Bankruptcy in addition to helping you understand what you can and cannot accomplish using the Chapter 7 code. You should be aware that certain debts such as tax bills less than three years old (from the due date), child support, or alimony cannot be eliminated by filing Chapter 7 bankruptcy. Also, in most cases, student loans are not dischargeable. Inquire now to schedule a no-obligation consultation, or just give our office a call at (301) 881-8895 for more information.

Chapter 11 Bankruptcy

A chapter 11 Bankruptcy is a “plan” bankruptcy similar to a chapter 13. It is filed by business entities and by individuals whose debt is too high to file a 13. A chapter 11 involves the expenditure of a great deal of attorney time and thus it is much more expensive than other bankruptcy options. Filing this type of bankruptcy is generally avoided unless it is absolutely necessary. A benefit to an 11 can be its flexibility in certain situations.

Selecting Chapter 13 Bankruptcy

Chapter 13 bankruptcy (also called a "repayment plan") is generally used for individuals that have an income that can generally cover most expenses on a monthly basis and in some instances, have money left over after paying their monthly bills. In a chapter thirteen filing, your income will need to exceed certain guidelines. For people who are behind on mortgage or car payments, or have both secured and non secured assets they wish to retain, a Chapter 13 reorganization can facilitate improved cash flow and potentially reduce both the monthly payments owed and the total balances owed on secured obligations. Learn more by contacting our offices at (301) 881-8895 or use our online form to Inquire about a Chapter 13 petition in Maryland, Virginia or The District of Columbia.

A chapter 13 reorganization can help people who have debts that would not be exempt in a Chapter 7. An attorney with The Law Firm of Wampler, Souder & Sessing L.L.C. can go over the Process of Bankruptcy filings and what potential repayment plan you can expect. As part of a Chapter 13 petition, the consumer must make payments to a Trustee, who distributes the money to the creditors according to a Chapter 13 plan. The payments can continue for upwards of five years.

A Chapter 13 plan is based on the consumer's monthly income, monthly expenses, debt, and property. Depending on these factors, consumers who qualify pay back either part or all of their debts. As long as Chapter 13 consumers keep up with the plan, they are able to keep their property. At The Law Firm of Wampler, Souder & Sessing L.L.C., our Legal Services are designed with you in mind. To learn more, or for a free consultation, contact our offices today at (301) 881-8895.

PLEASE NOTE:
BOTH A CHAPTER 7 AND CHAPTER 13 BANKRUPTCY WILL PUT A STOP TO ANY CREDITOR HARASSMENT, LAWSUIT, WAGE GARNISHMENT, OR FORECLOSURE.