Ellicott City, Maryland Bankruptcy Attorneys

Knowledgeable Attorneys Answer Frequently Asked Questions About Bankruptcy in Ellicott City, Maryland

Bankruptcy is often talked about as though it is a form of failure, but this is far from the truth. If you are struggling with debt that you cannot get out of alone, filing for bankruptcy can be a great way to regain control of your finances. The most financially responsible person in the world could still go into debt after facing an unexpected hardship like getting laid off or having a long-term illness. Young people are not always taught the financial literacy skills they need before having to make adult financial decisions, and they may accrue credit card debts or other types of debt. Entrepreneurs may plan their business ventures incredibly well, but they may still struggle to bring in enough profits to keep up with debt repayments.

Regardless of the circumstances that led to your debt, the Law Offices of Marc A. Ominsky, LLC can help you find debt relief through bankruptcy. Our skilled Ellicott City, MD bankruptcy lawyers have more than 50 years of combined legal experience. We are very hands-on in bankruptcy cases, and we can help you in real time when you reach out to us.

What Is the Difference Between Chapter 7 and Chapter 13 Bankruptcy?

Both types of bankruptcy involve paying back as much of your debt as possible. The main difference is how your creditors are paid back. In a Chapter 7 bankruptcy, some of your assets may be liquidated. The bankruptcy trustee will divide the proceeds from selling off your assets between your creditors. In a Chapter 13 bankruptcy, your assets will not be liquidated, but you will be put on a repayment plan for three to five years. You will make one monthly payment to the bankruptcy trustee, and that money will be distributed to your creditors.

In a Chapter 7 bankruptcy, the remainder of your unsecured debts will be cleared as soon as the bankruptcy process is over. In a Chapter 13 bankruptcy, the remainder of your debts will be cleared after you complete your repayment plan.

Which Debts Are Dischargeable in Bankruptcy?

Some of the debts you can normally discharge include:

Debts that are usually not dischargeable include:

  • Family law obligations like child support
  • Student loans
  • Certain tax debts, such as property taxes and recent income taxes

Which Assets Are Exempt From Chapter 7 Liquidation?

Bankruptcy exemptions will protect many of your assets from liquidation. Up to $5,000 worth of personal property of your choice, your qualified retirement savings accounts, and some of the equity in your home will be protected. There are numerous other exemptions for things like items you need for work and medical devices.

Can Bankruptcy Stop a Foreclosure?

Filing for bankruptcy automatically halts foreclosure proceedings until your bankruptcy is resolved. If your goal is to save your house, filing for Chapter 13 bankruptcy is one of the most effective strategies you could choose. Since your debts will be restructured, you will have time to catch up on past-due payments. In a Chapter 7 bankruptcy, you would likely need to reaffirm the debt with your creditor to avoid a foreclosure after your bankruptcy is over.

Can I File for Bankruptcy During My Divorce?

If you are getting divorced and expecting to file for bankruptcy, it is very important to seek advice from an attorney with experience in family law and bankruptcy. Filing these cases in the right order is critical. Whether you should address your divorce first, your bankruptcy first, or do both simultaneously will depend on several factors, such as whether your spouse also intends to file for bankruptcy.

Will Filing for Bankruptcy Stop Debt Collectors?

As soon as you file for bankruptcy, an automatic stay on all debt collection efforts will go into effect. This means that your creditors and debt collection agencies must stop contacting you to request repayment, and they cannot file a new lawsuit or proceed with an existing one until your bankruptcy is resolved. Wage garnishments and repossessions will also be halted.

Contact Our Ellicott City, MD Bankruptcy Attorneys

The Law Offices of Marc A. Ominsky, LLC is dedicated to helping individuals and businesses get relief from insurmountable debt through bankruptcy. Our highly experienced Ellicott City bankruptcy lawyers will strive to get as much of your debt discharged as possible. Contact us at 443-539-8712 for a complimentary consultation. We offer law enforcement and military discounts.

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