Bankruptcy: Chapter 7 and Chapter 13
Local Bankruptcy Lawyers
At The Law Firm of Shaw & Crowson, P.A. we understand the struggle with bills and other financial obligations. We can help. You can rely on us to help you get the fresh start you need by analyzing all of your bankruptcy options and alternatives. We have helped people in financial turmoil overcome debt problems for more than two decades.
What Is the Difference Between Chapter 7 and 13 Bankruptcy?
We can help understand the differences in both Chapter 7 and Chapter 13 consumer bankruptcy:
Chapter 7 is known as the "fresh start" bankruptcy, under which all exempt assets are protected and eligible debts, such as credit card debt, medical bills and unsecured personal loans, are wiped clean. Certain debts, such as child support arrearages or student loans, cannot be discharged through the bankruptcy process. Our firm can explain what exemptions you can receive, including the new Maryland Homestead exemption, and help you understand which assets you may be eligible to keep under these exemptions. We can guide you through this process and explain your options if you are not eligible.
Chapter 13 is the "payment plan/debt reorganization" bankruptcy. Chapter 13 bankruptcy allows debtors to consolidate their debt into a manageable repayment plan. This plan allows debtors the opportunity to avoid foreclosure by consolidating defaulted payments into structured repayments, allowing them sufficient time to regain control of their finances. It is also possible to avoid the liens of second mortgages and certain judgments with Chapter 13. Further, asset liquidation is unnecessary in this type of bankruptcy.
