Chapter 7 and 13 Bankruptcy

Request a free secure online analysis now! Provide the information below and we will email you a username and password to access our secure online application to determine which (if any) bankruptcy fits your specific situation. No social security number required.

Name
Phone
Email Address
		I authorize The Norman Law Firm to analyze the information I provide and make a recommendation based on the information provided.

The Norman Law Firm works with clients on both Chapter 7 and Chapter 13 bankruptcy filings. Chapter 7 is a complete discharge of all eligible debts while Chapter 13 creates a payment plan to pay back non-secured creditors a portion of the debt owed over a 3 to 5 year period. Chapter 13 bankruptcy allows individuals with higher income to qualify for bankruptcy and may have additional benefits including lowering the amount owed on certain secured debts such as vehicles (cramdowns) and real estate (mortgage stripping). You can declare bankruptcy only once every 8 years and bankruptcy may not wipe out all your financial obligations such as back taxes or child support.

There is a misconception that all property you own is forfeited when you declare bankruptcy. However, certain property is Exempt when you declare bankruptcy. These exemptions typically include a portion of the equity in a debtor's primary residence, a certain amount of personal property, 401k accounts and other qualified retirement instruments, and certain tools of the trade. Each state has its own set of exemptions.

In order to qualify to declare either a Chapter 7 or Chapter 13 bankruptcy there are limitations on the amount of income you can report. These limitations vary by state and are also dependent on the number of persons in your household. You will also be required to attend a credit counseling class prior to and after your bankruptcy filing.

In order to determine whether you qualify for a Chapter 7 or Chapter 13 bankruptcy we will need to examine a list of financial information to determine your monthly income and expenses. This List of Income and Expenses should be brought to your initial consultation to determine if you qualify for bankruptcy and which Chapter best suits your personal situation.

In order to get started either call toll free 888: 824.5339, or email us at snorman@thenormanlawfirm.com to set up your free initial consultation.

Frequently Asked Questions

What are the exemptions in Maryland?

Wildcard exemption of $6,000 in real or personal property, $12,000 for a married couple filing for bankruptcy.
$5000 on real property, $10,000 for a married couple.
$5000 tools of the trade exemption.
$1000 in household furnishings, personal items.

What are the exemptions in Delaware?

$25,000 in personal property or $50,000 for a joint filing. $50,000 in equity in a principal residence. $15,000 exemption for tools of the trade such as a work vehicle.

What is the maximum amount of debt I can have and still qualify for bankruptcy?

There is no limit on the amount of debt for a Chapter 7 filing. In Delaware you are eligible if your secured debts are no more than $1,010,650.00 and unsecured debts of no more than $336,900.00.

What constitutes current monthly income?

Current monthly income is the debtor's income for the last six months. You will also need a list of all expenses paid for the last two months.

Can I keep my stuff?

Typically, if you continue paying your debts including your mortgage statement or car payment, creditors will allow you to keep your asset. This includes loan modifications that are entered into prior to filing for bankruptcy. You can also reaffirm certain debts such as car loans.

What documents do I need to begin the bankruptcy process?

• Tax returns for the last two years in a Chapter 7 filing, and 4 years in a Chapter 13.
• Mortgage Statements
• Utility billings
• Credit Card Statements
• W-2's
• Rental Income and any other Income Received from investments
• Stocks and other investments
• Insurance policies
• Retirement Account Statements
• Secured and Non-secured loan statements
• Alimony payments or receipts
• Bank Statements
• Any pending lawsuits
• Recent Credit Report
• Property Tax Information if not included on Mortgage Statement

What is a cramdown of a vehicle?

If you have owed your vehicle for more than 910 days, approximately 2 ½ years, you may be eligible to "cramdown" the amount owed on the vehicle if it is worth less than you owe on it. This is another advantage of Chapter 13 bankruptcy.

What is the stripping of a second mortgage?

This is when there is no equity to support the second mortgage which therefore becomes unsecured. This is potentially the primary benefit of filing a chapter 13 bankruptcy.

How do I rebuild my credit after I declare bankruptcy?

Bankruptcy typically remains on your credit report for 10 years after you declare bankruptcy. However, since you can only declare every 8 years creditors typically take this into account when determining whether to extend credit or not.

What is the maximum income I can make and still qualify for Bankruptcy?

This varies by state and depends on the number of persons in your household.