Chapter 7 Bankruptcy in DC, Maryland & Virginia

If you can’t keep up with minimum payments, if your unsecured debt is more than you could realistically repay in a few years, or if creditors are already suing, garnishing, or moving toward foreclosure, it’s time to look hard at your options. Other signs: using credit cards for groceries, screening every call, losing sleep over money. I’ll give you an honest, individualized assessment at your free consultation, and if a different path fits better than bankruptcy, I’ll say so. The goal is the right outcome for you specifically.

Chapter 7 is liquidation bankruptcy. It discharges most unsecured debts, like credit cards, medical bills, and personal loans, with no repayment plan, and most cases finish in three to six months. It fits people with limited income and mostly unsecured debt. Chapter 13 is reorganization. You propose a three-to-five-year repayment plan based on your disposable income. It’s the smart choice if you have regular income, want to catch up on missed mortgage payments and keep your home, or own property a Chapter 7 trustee might sell. I’ll analyze your situation and tell you which chapter serves your long-term goals.

Yes. The moment your petition is filed, the automatic stay takes effect. It’s a federal injunction that prohibits nearly all collection activity: calls, letters, lawsuits, wage garnishments, bank levies, repossessions, utility shutoffs, and foreclosure sales. The protection is immediate, not weeks away. A creditor that knowingly violates the stay can be ordered to pay damages. I make sure the stay is enforced from day one.

For most people, no. This is the most common fear about bankruptcy, and the reality is far less frightening. Federal law and the laws of DC, Maryland, and Virginia exempt specific categories of property: a portion of home equity, a vehicle up to a set value, retirement accounts, household goods, and clothing, among others. Most Chapter 7 filers are “no asset” cases, meaning they keep everything they own. In Chapter 13, you generally keep all of your property as long as you complete the plan. I’ll walk you through exactly what’s protected before a single document is filed.

A Chapter 7 stays on your credit report for up to ten years, a Chapter 13 for up to seven. But if your credit is already damaged by missed payments, collections, and judgments, bankruptcy often does less additional harm than people fear. Many clients begin rebuilding within six months of discharge. Once the debt is gone, your debt-to-income ratio improves dramatically, and you can build new positive history through secured cards and responsible borrowing. For most people who finish the process, the stigma is worse than the reality.

Typically dischargeable: credit card balances, medical bills, personal loans, utility arrears, most civil judgments, certain older income taxes, and deficiency balances after a repossession or foreclosure. Generally not dischargeable: most student loans (absent proven undue hardship), recent tax debts, child support and alimony, criminal fines and restitution, and debts arising from fraud. I review every debt before filing so you know precisely what the discharge will and will not reach.

Yes. A job does not disqualify you, and Chapter 13 actually requires regular income to fund the plan. For Chapter 7, the means test compares your income to your state’s median. Below the median, you qualify automatically. Above it, further calculations determine whether you have enough disposable income to repay creditors. Many working individuals and two-income households qualify. I run a preliminary means test at your free consultation so you know where you stand.

Chapter 7 cases are typically handled for a flat fee. Chapter 13 fees are split between an up-front payment and payments through the plan, subject to court approval. Pricing is transparent, and payment options are flexible. Filing on your own carries real risks: procedural errors, missed exemptions, and defective plans can mean dismissal, lost property, or debts that survive when you expected them gone. The consultation is free, and the right guidance up front can save you thousands.