A chapter 7 bankruptcy is also sometimes referred to as liquidation; although with most cases there is little if any actual liquidation involved. Chapter 7 is referred to as liquidation because all of your non-exempt assets can be converted to cash to help pay back the debt owed. It is best to speak with a skilled bankruptcy lawyer if you are unsure whether Chapter 7 is the best option for you.
In general, chapter 7 best suits persons:
• with income at or below the state median level
• unable to adequately meet bills and living expenses each month
• having little or no assets besides clothing and furniture
• who are in foreclosure and have resolved to give up the property but need additional time
• without fines imposed for violating the law
Under Chapter 7 an individual or business can ask the courts to erase the debts owed creating a fresh start. As soon as you file for bankruptcy you are immediately granted a stay preventing creditors from contacting you to collect, garnishing your wages, taking your home, vehicles or other property, and/or shutting off your utilities.
In order to decide whether Chapter 7 is really necessary for you as a debtor, you will need to take a Chapter 7 Means test. This ensures you, as a debtor, are not trying to abuse the system. Contact our offices today to discuss your situation. We are conveniently located in downtown Hagerstown and service all of central and Western Maryland including Washington County, Allegany County, Garrett County, Frederick County and Montgomery County).
Contact us today:
The Badaki Law Firm, LLC
223 North Prospect Street, Suite 310
Hagerstown, Maryland 21740