Bankruptcy-David M.Grossman has been representing individuals in Chapter 7 & 13 bankruptcy proceedings since 1989. There are significant differences between Chapter 7 & 13. The best way to decide which is best for you is to call our office at 410-752-6088 to schedule a FREE CONSULTATION with me.

• Chapter 7 Frequently people find themselves under pressure and struggling with debt. In these situations you may want to completely eliminate the debt and start fresh. Chapter 7 can eliminate or "discharge" most of your debts. In many instances you will be able to keep your home and car as long as you are current on your loan and you continue to make your payments. Immediately upon filing a bankruptcy petition an "automatic stay" goes into effect. This "automatic stay" stops all collection activity including telephone calls, letters, collection agencies, lawsuits, wage garnishments and bank account attachments. However, in some cases this protection may not be permanent.
  
  The entire Chapter 7 process lasts approximately 8-10 months. In order to file for Chapter 7 Bankruptcy you need to file a petition along with numerous other forms and "schedules" which describe your property, income, living expenses, debts and property claimed as -exempt- (property you will be allowed to keep). During the bankruptcy process, the Court obtains legal control of your property (except your exempt property, which is your to keep).
  
  The Court appoints a person called a "trustee" for each bankruptcy case filed. The trustee will be concerned with what property you own. The trustee can take your property which is not exempt and sell it in order to pay creditors. However, in most cases people do not lose property. You will be required to attend one hearing called a "meeting of creditors" during which the trustee will ask you questions. Creditors are allowed to attend and can also ask you questions.
  
  At the conclusion of the case, you are granted a "discharge" and you no longer owe on your bills. Certain types of debts are "nondischargeable" and will not be eliminated by filing chapter 7. You can not file for Chapter 7 bankruptcy again for another six years from the date of your filing.
  
  
• Chapter 13 Chapter 13 is frequently used to stop the foreclosure of a house and catch up on missed mortgage payments. It can also be used to stop repossessions. In addition, Chapter 13 can pay past due state and federal income taxes and stop interest from accruing. Chapter 13 bankruptcy enables a person to consolidate their bills into a three to five year monthly payment plan. The amount of the monthly payment and the length of the repayment plan is based upon the following factors:

• Monthly income of the person
• Monthly expenses of the person
• Amount and nature of the debt

Upon completion of a Chapter 13 repayment plan you are granted a "discharge" which can eliminate certain unsecured debts which were discussed in your plan.