Chapter Seven Bankruptcy
Filing for Chapter 7 bankruptcy can be a useful tool for quickly getting rid of debt while still holding onto some important assets. It is designed for those who are unable to pay their existing, unsecured debts. These debts can include personal loans, medical expenses and outstanding credit card balances. Non-dischargeable debt, such as alimony, child support, student loans, and taxes, cannot be rid of through Chapter 7 bankruptcy.
If you decide to file Chapter 7 bankruptcy, your assets are divided into exempt and nonexempt property. Under Maryland law, exempt property includes your home and vehicle, provided you have evidence of on-time payments, as well as home equity, some personal property, and retirement assets. Nonexempt property will then be liquidated in order to pay down your debts.
To qualify for a Chapter 7 bankruptcy, you must pass the “means test,” which will determine your eligibility based on income. Your average gross income for the six months prior to filing will need to be lower than the Maryland median income, which in 2015 was $75,847. If it is higher than the median, you may still be eligible for a Chapter 7 bankruptcy—your attorney will help you determine other means of eligibility.
Filing for bankruptcy is often overwhelming, so it is important that you have a dedicated legal team on your side during the process. The bankruptcy attorneys at The Parker Team have extensive experience guiding clients through the process of filing Chapter 7 bankruptcy, and will work with you through the complex challenges of your individual case. If you would like to discuss your individual circumstances with a skilled bankruptcy attorney, contact us today!