If you are currently unable to pay your debts, a Baltimore bankruptcy attorney should be your first priority.
If you need to discharge your debts you may need a Baltimore bankruptcy attorney to help give you accurate advice on your options.
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Under the current federal stature, a discharge under Chapter 7 is a release of the borrower from personal liability for certain specified types of debts. This discharge operates as a permanent order directed to the creditors of the borrower that they refrain from taking any form of collection action on discharged debts. Unless there is litigation involving objections to the discharge, the borrower may automatically receive the discharge.
The quicker you obtain a Baltimore bankruptcy attorney the better your chances may be to discharge your debts. It is difficult for debtors to discharge their unsecured debts. If you think you qualify for a Chapter 7 debt liquidation, you should call a Baltimore bankruptcy attorney as soon as possible.
Before a Baltimore bankruptcy attorney may file under any Chapter, you are required to get a certification from a debt counselor to show that you made efforts to reduce your debts.
Talk to a sponsoring bankruptcy attorney of Total Bankruptcy for more information on the current laws and how they impact your options.
Bankruptcy Abuse Prevention & Consumer Protection Act of 2005.
The bankruptcy law has a number of provisions that dramatically limit the right of many individuals to file for Chapter 7. Some of these significant provisions include:
A strict financial means test that prohibits many debtors from filing a liquidation under Chapter 7
A requirement that all debtors must receive a briefing from an approved credit counseling agency at least six months before they can file their case
A requirement that debtors take an approved class on debt management techniques before they receive their discharge
A provision making it easier for a court to dismiss a case outright or to convert a Chapter 7 case to a Chapter 13 case
A provision permitting a court to impose sanctions on attorneys, or even on debtors, for filing a Chapter 7 case that is dismissed or converted to a Chapter 13 case
The most punitive part of the law is the "Means Test." Before a debtor may be eligible to discharge their unsecured debts, their income has to be below a specified level. If their income is above that level, they are not permitted to file their case under Chapter 7 and must instead use Chapter 13. Additionally, under the "Means Test", the court will determine whether, after the deduction of certain essential living expenses from the debtor's income, they are able to afford to pay 25 percent of their non-priority unsecured debts. Next, the debtor's income may be compared to Maryland's median income. The Maryland debtor may not be allowed to file for Chapter 7 if their income is above the state's median income and may be able to afford to pay 25 percent of their unsecured debt.
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The purpose of this web site is to help you learn everything you need to know about bankruptcy, the process, your bankruptcy attorney and your legal rights. The best place to start is with the U.S. Bankruptcy Code. It delivers protection to people in financial jeopardy who are suffering under mountains of debt. Bankruptcy is your legal right.