

Liquidation Proceeding.
Chapter 7 is commonly known as a “liquidation” proceeding. It is also referred to a “straight” or “complete” bankruptcy. The primary purpose of a Chapter 7 case is to provide the debtor with a fresh start. In a Chapter 7 case, the bankruptcy trustee is permitted to seize and sell the debtor’s non-exempt assets and to distribute the proceeds from the liquidation of these assets to the debtor’s creditors. However, in the vast majority of consumer bankruptcy cases, the debtor will retain all of his or her property because it is exempt from seizure by the trustee under state or federal law.
Filing A Chapter 7
Liquidation Proceeding.
Chapter 7 is commonly known as a “liquidation” proceeding. It is also referred to a “straight” or “complete” bankruptcy. The primary purpose of a Chapter 7 case is to provide the debtor with a fresh start. In a Chapter 7 case, the bankruptcy trustee is permitted to seize and sell the debtor’s non-exempt assets and to distribute the proceeds from the liquidation of these assets to the debtor’s creditors. However, in the vast majority of consumer bankruptcy cases, the debtor will retain all of his or her property because it is exempt from seizure by the trustee under state or federal law.
Filing A Chapter 7
Protection From Creditors
Upon filing a Chapter 7, the debtor is immediately afforded the protection of the “automatic stay” provided by Section 362 of the Bankruptcy Code. The primary purpose of the automatic stay is to protect the debtor and the debtor’s property, including wages, bank accounts, personal property; and real property such as the debtor’s residence. The automatic stay stops all collection efforts by creditors, such as wage and bank garnishments. It also prohibits creditors from calling debtors, filing lawsuits against debtors and continuing to send collection letters. The automatic stay lasts for the duration of the case, which is typically 90 days.
Meeting Of The Creditors
Chapter 7 Advantages
- Provides a fresh start and discharges most debts without requiring any repayment.
- Stops creditors from filing lawsuits to collect their debt.
- Stops creditors from calling you and sending collection letters.
- Stops existing wage and bank garnishments and prevents future garnishments.
- May discharge some state and federal income tax liabilities.
- Case can be filed and concluded within 90 days from filing date.
- Allows a debtor to surrender his or her home and discharge the mortgage debt, even if a foreclosure has been filed.
- If eligible for a Chapter 7 case you will not have to surrender any of your property.
Chapter 7 Advantages
- Provides a fresh start and discharges most debts without requiring any repayment.
- Stops creditors from filing lawsuits to collect their debt.
- Stops creditors from calling you and sending collection letters.
- Stops existing wage and bank garnishments and prevents future garnishments.
- May discharge some state and federal income tax liabilities.
- Case can be filed and concluded within 90 days from filing date.
- Allows a debtor to surrender his or her home and discharge the mortgage debt, even if a foreclosure has been filed.
- If eligible for a Chapter 7 case you will not have to surrender any of your property.
Reorganization Proceeding
Chapter 13 is commonly known as a “reorganization.” It is also referred to as a “repayment plan” or “wage earner plan.” Chapter 13 provides the debtor with opportunity to reorganize his or her financial affairs without having to liquidate assets. Chapter 13 is designed to allow the debtor to make monthly payments out of future income, typically wages, to repay some or all of his or her creditors. In a Chapter 13 case, the debtor is permitted to keep all of their property, whether exempt or non-exempt. In many instances, debtors who are not eligible to file a Chapter 7 case use Chapter 13. In addition, debtors seeking to stop foreclosure proceedings file a large percentage or Chapter 13 cases.
Filing A Chapter 13
Reorganization Proceeding
Chapter 13 is commonly known as a “reorganization.” It is also referred to as a “repayment plan” or “wage earner plan.” Chapter 13 provides the debtor with opportunity to reorganize his or her financial affairs without having to liquidate assets. Chapter 13 is designed to allow the debtor to make monthly payments out of future income, typically wages, to repay some or all of his or her creditors. In a Chapter 13 case, the debtor is permitted to keep all of their property, whether exempt or non-exempt. In many instances, debtors who are not eligible to file a Chapter 7 case use Chapter 13. In addition, debtors seeking to stop foreclosure proceedings file a large percentage or Chapter 13 cases.
Filing A Chapter 13
Protection From Creditors
Immediately upon filing of a Chapter 13 case, the debtor is protected by the automatic stay of Section 362 of the Bankruptcy Code. The automatic stay stops all collection efforts by creditors and serves to stop wage garnishments and bank garnishments. The stay also prohibits creditors from repossessing the debtor’s personal property such as an automobile or conducting a foreclosure sale.
Chapter 13 Plan
Confirmation Hearing
The debtor must begin making Chapter 13 plan payments within 30 days after the case is filed. Payments are made to the Chapter 13 standing trustee by mailing the payments to her payment address. A confirmation hearing must be held in every Chapter 13 case. The confirmation hearing is usually scheduled about 30 days after the Section 341 Meeting of Creditors and is conducted by the Bankruptcy Court judge who was assigned the debtor’s case when it was first filed. At the conclusion of the confirmation hearing, the court will enter an “order confirming plan” essentially approving the debtor’s Chapter 13 plan and proposed monthly payment. The effect of the court’s order is to bind both the debtor and his or her creditors to the terms of the plan. If the creditors and Chapter 13 trustee do not object to the terms of the debtor’s plan, the plan may be confirmed without the court conducting a hearing. The trustee will recommend confirmation of the plan to the court and the debtor’s appearance at the hearing is waived. Upon confirmation of the plan, the court will enter a wage order directing the debtor’s employer to deduct the plan payments from the debtor’s pay.
Chapter 13 Advantages
Contact Lawrence A. Price Jr. P.A. for more information about Chapter 7 & Chapter 13 bankruptcy. 410-838-2308
The information contained in this website is for information purposes only and does not constitute legal advice. Communicating with the Law Firm of Lawrence A. Price, Jr., P.A. and attorney Lawrence A. Price, Jr. through this website does not establish an attorney-client relationship.
You should not make legal or financial decisions based upon the content of the information contained in this website. The Law Firm of Lawrence A. Price, Jr., P.A. and attorney Lawrence A. Price, Jr. expressly disclaim any and all liability for any decisions that you may make or actions that you may engage in based upon your interpretation of the content of this website. The information and statements contained in this website are not intended to guarantee results.
If you contact the Law Firm of Lawrence A. Price, Jr., P.A. and attorney Lawrence A. Price, Jr. through this website, your communications are not subject to the attorney-client privilege unless and until you have retained us. You should never send confidential information to us through this site and if you chose to do so, you accept the risks associated with sending such information via the internet.
CONTACT INFORMATION
Tel: 410-838-2308
Fax: 888-316-5025
808 S Main St, Bel Air MD 21014

Hours of Operation:
Mon-Fri 9:00 AM – 5:00 PM
Sat-Sun – Closed
CONTACT FORM
Please fill out the form below.
CONTACT INFORMATION
Tel: 410-838-2308
Fax: 888-316-5025
808 S Main St, Bel Air MD 21014

Hours of Operation:
Mon-Fri 9:00 AM – 5:00 PM
Sat-Sun – Closed