Comparing Chapter 7 to Chapter 13 Bankruptcy
To help you fully understand the difference between filing Chapter 7 Bankruptcy in Maryland and Chapter 13 Bankruptcy in Maryland, I will explain some of the major differences.
In Chapter 7 Bankruptcy in Maryland, you ask the bankruptcy court to discharge most of the debts you owe. Those debts include credit card bills, medical bills, judgements and all unsecured debts. In exchange for this discharge, the bankruptcy trustee CAN (but will not in ALL CASES that we file) take any property you own that is not exempt (BUT ALL PROPERTY WILL BE EXEMPT OR WE WILL NOT FILE A CHAPTER 7).
In Chapter 13 Bankruptcy in Maryland, you file a repayment plan with the bankruptcy court to pay back all or a portion of your debt over time. The amount you repay depends on how much you earn, the amount and types of debts you owe and how much property you own. Chapter 13 is most often used in Maryland when you are behind on your mortgage and facing foreclosure. Chapter 13 Bankruptcy in Maryland will stop a foreclosure.
In Maryland, we have a homestead exemption of $21,625, which means you can keep your home in a Chapter 7 even if you have $21,625 worth of equity in your home, or even more in most circumstances, depending on what other assets that you have.
If you have any questions about Chapter 7 or Chapter 13 bankruptcy in Maryland, call us today. I am a Maryland Bankruptcy attorney, and I file bankruptcy’s for people all over the state. I have an office in Baltimore and in Glen Burnie, and my hours are convenient and my prices are affordable.
Call 1-800-NEW-START today to get a fresh start, and remember our slogan for bankruptcy, FILE TODAY…….SMILE TOMORROW.