Southern Maryland Bankruptcy Attorneys
Everyone experiences financial difficulties from time to time. These difficulties can be caused by the loss of a job, the death or sickness of a wage earner, or some other circumstance. The bankruptcy laws have been established to help people through troubling financial times. In certain cases, Chapter 7 of the bankruptcy code allows for the discharge of outstanding consumer debt. In other cases, Chapter 13 of the bankruptcy code allows individuals and consumers to restructure and pay back their debts under a schedule that is approved by a bankruptcy trustee and bankruptcy court. In either case, bankruptcy is a complex process, so it is essential that you receive competent legal advice from bankruptcy attorneys who know your debt relief options and can explain them to you in terms you understand.
The Calvert County bankruptcy attorneys of Davis, Upton, Palumbo & Dougherty, LLC are experienced in advising and representing individuals and families struggling with consumer debt. We also assist clients with related real property issues, including negotiating workouts, handling short sales, drafting deeds in lieu, protecting homeowners’ interests in foreclosure and dealing with overzealous creditors. When the circumstances are right, we can prepare and file a petition to discharge consumer debt under Chapter 7, or a plan to reorganize it under Chapter 13. Read on for a description of each of these bankruptcy options.
Chapter 7 Bankruptcy
Chapter 7 is designed for people who are having financial difficulties and are not able to re-pay their debts. A Chapter 7 case discharges your debts to give you a “fresh start” and is usually appropriate when most of your debt is unsecured debt, such as credit cards. When you file a Chapter 7 case, a trustee will be appointed to administer your case, review your assets and liabilities, and liquidate available non-exempt property in order to pay your creditors. Under certain circumstances, however, you may be able to keep property that has a lien on it. During your bankruptcy case, your creditors cannot call you, write to you, sue you, or take any steps to attempt to collect a debt from you. Once your Chapter 7 case is over, usually in about 90-120 days, you receive a discharge of those debts which were not repaid in the liquidation process. Some debts however, such as child support and alimony, certain taxes and student loans, cannot be discharged.
Chapter 13 Bankruptcy
Chapter 13 is designed for individuals with regular income who are temporarily unable to pay their debts, but would like to pay them in installments over a period of time, up to five years. Chapter 13 is a valuable tool that lets you “catch up” overdue payments, and is usually appropriate when your debt is secured debt, such as a mortgage or car loan. Under Chapter 13, you will be required to file a plan showing how you intend to pay your arrearages, and you may be able to keep all of your property, as long as you follow the plan, and make your regular payments on secured debt. When you have finished making payments under the plan, most of your unsecured debts will be discharged.
If you are experiencing financial difficulty and need to learn about consumer bankruptcy or other debt relief options, contact the Southern Maryland bankruptcy attorneys at Davis, Upton, Palumbo & Dougherty, LLC. Call us at (410) 535-1780 to learn how our attorneys can help protect you.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.