Frequently asked questions about Bankruptcy

How many types of bankruptcy are there?

There are two main types of bankruptcy, Chapter 7 and Chapter 13. The other 2 types are Chapter 11, Chapter 12. Most people file for chapter 7 and 13, chapter 7 is recommended to those who may not be able to repay all of their debts, releasing them from certain dischargeable debts. Chapter 13 Bankruptcy usually has someone who has a regular income and can make payments to creditors to payoff their debts with a plan.

What if a creditor demands payment after I file my case?

The creditor trying to reach out to claim payment is in violation of the automatic stay. If they claim a car, or home after the fact, then they will have no choice but to return it to the rightful owner. They can also be punished for the harm done to you, after they have knowingly violated the terms of bankruptcy after you filed it.

How much does it cost to file for bankruptcy in Maryland

Currently it costs:

Chapter 7: $335

Chapter 11: $1,717

Chapter 13: $310

Frequently asked questions about Bankruptcy

Am I eligible to file for Bankruptcy?

For Chapter 13 Bankruptcy, you must have 1) a regular income, through a job/disability/unemployment. And 2) the debts can not be over a certain amount, for secured debt, it cannot be over $1,081,400, and for unsecured debt, it cannot be over $360,475.

For Chapter 7 Bankruptcy, the debtor must only have primarily consumer debt, and must not be able to pay for all of their debts with the “means” that they have.

I am filing for Bankruptcy, but I want to keep my home, what do I do?

For Chapter 7, you must declare that you will return to your property, purchase it, or enter into a reaffirmation agreement with the creditor. If you do not do one of these things, the creditor may take the property

For Chapter 13, there is usually a plan devised to pay off your debts. So your home will most likely be off the table, even if you put it up for collateral. Make the payments on-time, and the house should be fine.

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