Frequently Asked Questions about
a Maryland or Washington DC Chapter 7, Chapter 13 or Chapter 11 Bankruptcy
Prepared by Washington DC Bankruptcy Attorney
Kevin D. Judd
Located Near the Navy Memorial/Metro Station
and Serving Clients in Washington DC and Throughout Maryland
Chapter 7 is the most well known bankruptcy.
Chapter 7 allows you to discharge your legal financial obligations to
creditors, which means that creditors are prohibited from calling you
and are also prohibited from imposing garnishments, levies, lawsuits or
any other collection actions against you because you no longer have a
legal obligation to pay the debt. However, certain debts are non-dischargeable.
These include student loans, certain taxes from a specific time period
(taxes due within 3 years), alimony and support payments, criminal restitution
and debts for death or personal injury caused by driving intoxicated from
alcohol or drugs.
Chapter 13 is designed for persons with regular income
who were temporarily unable to pay their debts, but would like to pay
them in installments over a period of time. Chapter 13 is typically used
by consumers who have substantial disposable income or persons who have
fallen behind in their mortgage and/or vehicle payments and are faced
with foreclosure or repossession, but would like to retain the property.
Under a Chapter 13, you must file a plan with the court to repay your
creditors using your future earnings. The repayment period is usually
three years, but no longer than five years. After completion of your payment
plan, your debts will be discharged, except for long term secure obligations
such as mortgage and vehicle loans, student loans, alimony and support
payments, criminal restitution and debts for death or personal injury
caused by driving intoxicated from alcohol or drugs.
Chapter 11 is primarily designed for business reorganizations.
Although, the Washington DC Bankruptcy Law Firm of Kevin D Judd does not
provide this service, we are able to recommend you to a law firm that
can help your company restructure its debt.
QUESTIONS COMMONLY ASKED BY PROSPECTIVE BANKRUPTCY
CLIENTS:
When clients consult with Kevin D. Judd, they often have the same reoccurring
questions. Below are the most frequently asked questions and their answers.
However, if you require answers to more detailed questions, please feel
free to contact Kevin Judd, a Washington DC foreclosure attorney who is
happy to lend his expertise to your situation.
1. Where Should a Bankruptcy Case be Filed?
In the jurisdiction where the person resided or maintained
a principle place of business for the greater portion of the last 180
days. The Washington DC bankruptcy Law Firm of Kevin D. Judd is familiar
with all Maryland jurisdictions, especially those surrounding the District
of Columbia.
2. Who is Eligible to File
a Chapter 7 Case and Maintain a Chapter 7 Case?
Kevin D. Judd, an experienced Maryland Chapter 7 lawyer,
will file a Chapter 7 case for any person who resides in, does business
in or has property in the United States. All such clients may file a Chapter
7 case, except for:
a) a person who has filed a Bankruptcy case within 8 years and has received
a discharge
b) a person who has committed certain fraudulent acts,
c) or a person who has intentionally dismissed a prior bankruptcy case
within the last 180 days.
In order for a person to maintain a Chapter 7 case, that person must demonstrate
that he or she does not have enough disposable income to pay off a substantial
portion of his or her debts within a reasonable period. Disposable income
is defined as a person’s net income after the payment of the necessary living
expenses, including the expenses for his or her dependents.
3. May a Husband and Wife File a Joint
Chapter 7 Case and Under What Circumstances?
Yes. Although a husband and wife do not have to file together, a husband and wife should file together if both of them are liable for one or more substantial dischargeable debts. If both are liable for a substantial debt and only one files a Chapter 7 case, the creditor may later attempt to collect from the non-filing spouse.
4. What if You Want to Repay a dischargeable
Debt?
You are not prohibited from repaying as many dischargeable debts as you wish. Further, by repaying a selected debt, you are not obligated to pay your other dischargeable debts.
5. How Does a Discharge
Affect Co-Signers?
A discharge only releases the person(s) who filed the case. The liability of the debt to the co-signer remains.
6. Do I Lose My House and/or My Vehicle
if a File a Chapter 7 Case?
So long as you are current on your mortgage and/or vehicle payments and maintain insurance, you may be able to keep your house and/or vehicle.
7. How Does a Chapter 7 Filing Affects
a Person’s Credit Rating?
If you have a good rating, it will worsen it. However, if you have a very derogatory rating, it may help it because some financial institutions solicit persons who have filed a Chapter 7 case. They know that person is unable to file another Chapter 7 case for another eight years. In addition, if a compelling reason led to your filing, such as illness or divorce, some credit rating agencies make take that into account in rating your score.
8. Will it be Difficult to Obtain Future
Employment or Will I Lose My Current Job?
No. The law is clear here. Employers are barred from discriminating against persons who have filed a bankruptcy case.
9. What are the Typical Steps to Filing
a Chapter 7 Case and Obtaining a Discharge?
a) First, schedule an appointment with Kevin D. Judd, a qualified Washington DC bankruptcy attorney who can properly manage your entire Chapter 7 bankruptcy filing.
b) At your first appointment, you should bring a copy of your last tax return filed, proof of income for the past 6 months and pay stubs or documents relating to retirement or disability income. You should also bring a copy of deeds to property owned in the last 3 years and documents evidencing all your debt obligations. You may also provide a copy of your credit report.
c) At your first appointment, you will fill out a bankruptcy questionnaire in which we will review with you and determine if you are eligible to file a bankruptcy case.
d) You will come back to the office within 1 to 2 weeks to sign your bankruptcy papers that are prepared by the Washington DC bankruptcy office of Kevin D. Judd. These papers will be filed in court within a few days after all necessary signatures are obtained.
e) Approximately, a month after the filing of your case, a meeting of creditors will be held. This typically last 2 to 3 minutes, and creditors normally do not appear at the meeting.
f) Approximately 3 months after the meeting of creditors is held, your Chapter 7 discharge papers will be mailed to you by the court.
10. What are the Typical Steps to Filing
a Chapter 13 Case and Completing a Chapter 13 Case?
You first schedule an appointment with Kevin D. Judd, a Washington DC bankruptcy attorney who will see you through the entire Chapter 13 bankruptcy process.
b) At your first appointment, you should bring a copy of your last tax return, proof of income for the last 6 months for example and pay stubs or documents relating to retirement or disability income. Bring a copy of deeds to all properties owned in the last 3 years, and bring proof evidencing all your debt obligations. You may also bring a copy of your credit report if you have it.
c) At your first appointment with Kevin Judd, you will fill out a bankruptcy questionnaire in which we will review with you and determine if you are eligible to file a Chapter 13 case.
d) You will come back to the office within 1 to 2 weeks to sign your bankruptcy papers that are prepared by the Washington DC bankruptcy Law Firm of Kevin D. Judd. However, in emergency situations, you will come back the next day to sign bankruptcy short forms to stop a pending foreclosure of a house or to halt a repossession or sale of a vehicle.
e) After your Chapter 13 case is filed, you are required to pay all secured creditors on time on the scheduled due date. Secured creditors are creditors who have a lien against property you own; such as houses, vehicles and personal property (e.g., furniture, jewelry, etc.). You are required to commence plan payments to the bankruptcy trustee one month after the Chapter 13 plan is filed in court.
f) Approximately, a month after filing your Maryland Chapter 13 case, a meeting of creditors will be held, which typically last 3 to 5 minutes. At this meeting, the bankruptcy trustee reviews your bankruptcy papers and inquires as to whether you can afford to pay your regular monthly living expenses in addition to your Chapter 13 plan payments.
g) Approximately 3 months after your meeting of creditors, a confirmation hearing will be held. At this confirmation hearing, the Bankruptcy Judge reviews your Bankruptcy filings. If everything is in order and you are current on plan payments, your Chapter 13 plan payments will be confirmed by the Bankruptcy Judge without you appearing to court.
h) After you have funded your plan payments within the subscribed plan
payment period, you will receive a Chapter 13 discharge and your case
will be closed.
The best advice for anyone facing a difficult financial challenge is to
act. You may chose to file for a Maryland bankruptcy. You may chose to work
out payment plans with your creditors, but you should do something. Not
acting makes creditors more eager to take action against you, and only worsens
your long-term financial outlook.
For guidance and assistance in filing a Chapter 7 or Chapter 13 bankruptcy
in the Washington DC area, contact Kevin D. Judd, an experienced Washington
DC bankruptcy attorney who will manage your Chapter 7 or Chapter 13
bankruptcy from start to finish.
Your gateway to financial freedom.
Free initial phone consultation. Located near the Navy Memorial/Metro
Station.
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reserved.
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