Chapter 7

How To File For Bankruptcy

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Ensure you have looked at all other choices and alternatives. Bankruptcy will stay on your credit for up to 7 years. A law was passed on October 17th, 2005 which requires people to get consumer credit counseling from an entity approved by the U.S. Trustee within 180 days of the date of filing. This counseling is needed to make sure that you have no other option.

There are two primary types of bankruptcy’s to contemplate. The two types are a Chapter 7 (that is a liquidation bankruptcy), and a Chapter 13 (which is a repayment strategy). The Bankruptcy Abuse Prevention and Consumer Protection Act has made it considerably harder to file a chapter 7 due to the means test. This evaluation goes over the means you have to pay the debt and if there is any opportunity at all which you could pay some towards debt. If so, they are going to make you file a Chapter 13.


Consistently use an Annapolis bankruptcy attorney to file for either kind of bankruptcy as they will take care of most of the research for you. Try to locate a legal office where it is possible to be in direct contact with your attorney to ensure clarity and excellent decision making.
When you meet with your attorney make sure your attorney is asking and answering all of your questions as they are going to discover which chapter will be best for your scenario. An attorney is, also, an amazing resource that can help you with finishing the BAPCPA’s means test.

Be sure to go over how much this will cost as each attorney bills distinct hourly sums. Some attorneys charge a straight fee while some cost by the hour. The typical fee is $1,700 but can change significantly depending on the state in which you reside.

When you have retained a lawyer, refer all your creditors to your attorney’s office. The best perk of having a lawyer is that you can cease the never-ending annoying calls. Once you have notified your lenders that you have an attorney, they will subsequently be liable if they continue to harass you with phone calls.
A meeting will be scheduled with your lenders and that it called a 341 meeting. This assembly enables the trustee to ensure you have given true testimony in your bankruptcy request and that you understand the terms.
All assets and debt will be computed, and it will provide a guarantee that all assets and debt are included in the bankruptcy proceedings.

Do not use your credit cards if you know you will be filing for bankruptcy. A lender can challenge the release of debt owed.

If you file a Chapter 7 bankruptcy, the trustee will decide if any assets can be liquidated and used to reimburse your creditors. In a Chapter 7 bankruptcy you may never need to pay a lender back, but in a Chapter 13, you will be asked to enter into a 3 to 5-year repayment plan in which you may pay your creditors as much as possible in that time frame.

A Maryland bankruptcy release usually occurs after 60 days from the 341 meeting. If no lenders have filed suits or challenged your release, a discharge of your debts will be given. A dismissal means you have no additional duty to reimburse the debt which you owed. If you file a Chapter 13, you’ll get a dismissal 30-60 days after your last payment.