Chapter 7, Chapter 11 Or Chapter 13?
If we were given an opportunity to correct past mistakes, most of us would jump at it. That is the benefit of bankruptcy. It can stop harassment and give you a new financial beginning. If you make mistakes in the debt relief process, it can negatively affect your financial goals.
At the Law Offices of Stephen J. Kleeman, we understand how difficult it can be to choose to pursue bankruptcy. Attorney Stephen Kleeman is an experienced bankruptcy attorney in Baltimore County, and he can provide you with an honest assessment of your situation and answer all the questions you have.
Which Bankruptcy Is Best For Me And My Family?
Everyone’s situation is a little different, and your bankruptcy options reflect that. For a personal bankruptcy, you have three options:
Chapter 7 (Liquidation)
Wipes out unsecured debts, including credit cards and medical and personal loans. You must pass the Means Test, which will determine if your household meets financial thresholds. If you do not qualify, you will have to file Chapter 13.
If you qualify, an automatic stay order will be issued. This temporarily stops most creditors from lawsuits or wage garnishment. If you file bankruptcy before the sale of a house in foreclosure, it will be stopped until there is bankruptcy court approval. A trustee will sell property you cannot protect to pay off creditors. This is the best option for people with a low income and few (if any) assets.
Chapter 11 (Reorganization)
For a business or partnership. Your attorney will negotiate with creditors, prepare lease and loan arrangements, and work on refinancing and asset liquidation. The goal is to establish a reorganization plan and repayment. If the creditors agree, and it is confirmed by the court, it can proceed.
Chapter 13 (Repayment for individuals)
Protects you from collection by discharging unpaid balances at the end of the plan. Repayment can be from 10 to 100 percent, depending on the debtor’s income. You must have:
- Less than $922,975 in secured debt (property creditors can take if you stop making payments)
- A regular income
- At least $307,675 in unsecured debt (the debtor can keep this property, but they are required to make regular payments, which must be paid within three to five years).
The above descriptions may help narrow down your choices, but there may be many factors that change your decision. As your bankruptcy lawyer, Stephen Kleeman will review your case closely and guide your filing.
Call Us For Guidance Through The Bankruptcy Process
If you are filing for bankruptcy in Baltimore County or anywhere in Maryland, call the Law Offices of Stephen J. Kleeman. We can minimize negative consequences. To connect with our lawyers in our convenient Towson offices, call 443-798-2409 or visit our contact page.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.