FAQs

To qualify for Chapter 7 bankruptcy in Maryland, you must pass a “means test,” which compares your income to the state median. If your income falls below the median or you meet other specific conditions, you may be eligible. Speaking with an experienced bankruptcy attorney at Sirody & Ruben will help you understand your eligibility and navigate the process.

The Chapter 7 bankruptcy process in Maryland typically takes about four to six months from filing to discharge. However, the duration may vary depending on individual circumstances, such as the complexity of your financial situation. Consulting with Sirody & Ruben can provide a clearer timeline based on your case.

Chapter 13 bankruptcy is a form of debt reorganization that allows individuals with regular income to create a repayment plan for their debts over a period of three to five years. Unlike Chapter 7, Chapter 13 helps you keep your assets while making manageable payments to creditors. This option is ideal for those who are behind on secured debts like mortgages or car loans but want to retain their property.

To qualify for Chapter 13 bankruptcy in Maryland, you must have a stable income to support the proposed repayment plan. Your secured debts, such as a mortgage, cannot exceed $2.75 million, and unsecured debts must not exceed $465,000. Consulting with Sirody & Ruben can help determine your eligibility and assist in developing a realistic repayment plan.

Filing for Chapter 13 bankruptcy allows you to stop foreclosure, catch up on overdue payments, and protect your assets while repaying your debts over time. It provides a structured way to manage debt without losing your home or car. Additionally, it can help reduce the impact on your credit compared to other bankruptcy options.

While Chapter 13 doesn’t offer immediate debt discharge like Chapter 7, it does allow for the restructuring of debts. Some unsecured debts may be discharged after you complete the repayment plan, but priority debts like child support and taxes will need to be paid in full.

Both Chapter 7 and Chapter 13 bankruptcies will negatively impact your credit score. Chapter 7 remains on your credit report for 10 years, while Chapter 13 remains for seven years after completion of the repayment plan. However, filing for bankruptcy may offer relief from unmanageable debt and a chance to rebuild your financial future.

The best option depends on your financial situation. Chapter 7 may be better if you have little income and many unsecured debts, while Chapter 13 may be more appropriate if you have a steady income and wish to keep your assets while repaying some of your debt.

Filing for bankruptcy can offer numerous benefits, including the elimination or reorganization of overwhelming debt, protection from creditor harassment, and a fresh financial start. Depending on your situation, bankruptcy may stop foreclosure, wage garnishments, or repossessions. Speaking with experienced bankruptcy attorneys like those at Sirody & Ruben can help you understand which type of bankruptcy, such as Chapter 7 or Chapter 13, best fits your needs.

Bankruptcy attorneys play a crucial role in guiding you through the complex legal process. They help you understand your options, file necessary paperwork, and ensure that your rights are protected. At Sirody & Ruben, our skilled attorneys will work with you to determine the best course of action, whether that involves Chapter 7 liquidation or Chapter 13 reorganization.