Maryland Bankruptcy FAQ
People often ask us questions about bankruptcy at Robert A. Siegel with The Law Office of Marla Zide, LLC Here are some questions I frequently answer:
- Does bankruptcy wipe out all your debt?
- What are the differences between Chapter 7 and Chapter 13 bankruptcies?
- Can you file for bankruptcy and still keep your assets?
- How do you know whether Chapter 7 or Chapter 13 is right for you?
- Can you ever re-establish your credit after bankruptcy?
- If you file bankruptcy, will everyone know about it?
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I work directly with clients as a bankruptcy attorney and personally file their petitions for them. For a free initial consultation to discuss bankruptcy, contact Robert A. Siegel with The Law Office of Marla Zide, LLC
Does bankruptcy get rid of all your debt?
Some debts you cannot discharge through bankruptcy, such as: recent tax debts, child support, alimony, personal injury or wrongful death debt payments based on driving while under the influence of alcohol or drugs, student loans, and criminal restitutions or penalties. Otherwise, bankruptcy gets rid of the debts you list in your bankruptcy filing.
What are the differences between Chapter 7 and Chapter 13 bankruptcies?
Chapter 7 involves liquidation of assets to pay off debts. Only people who meet income requirements may file for Chapter 7. Chapter 13 requires that people have a stable income source and sets up a payment plan over a three- or five-year period to pay off debtors. No income limits exist for filing for Chapter 13. However, individuals whose secured and unsecured debt exceeds certain amounts are not eligible for Chapter 13. There are no debt limits for filing for Chapter 7.
Can you file for bankruptcy and still keep your assets?
Yes, in Chapter 7, certain assets are exempt and not sold to pay creditors. Exemptions vary depending on the state where you live. Many people keep their assets by filing for Chapter 13, which does not involve asset liquidation.
How do you know whether Chapter 7 or Chapter 13 is right for you?
Based on your type of debt, income stability, and assets, bankruptcy attorneys can advise which bankruptcy chapter would benefit you most.
Can you ever re-establish credit after bankruptcy?
Yes, there are many ways to start rebuilding credit once bankruptcy is over.
If you file for bankruptcy, will everyone know about it?
Unless you are well-known and subject to the media, it is unlikely that anyone besides your creditors will know you filed for bankruptcy.