J. Michael Broumas

Chapter 7 Bankruptcy allows a debtor to discharge most debts. The process takes about 4 months to complete but you get relief immediately once the case is filed. Creditors are required to stop all collection efforts, all lawsuits, garnishments and even temporarily a foreclosure. Usually you get to keep most of your things including cars and houses ( depending on the amount of equity). Once the case is done your credit score tends to recover and over time improve.

Chapter 13 Bankruptcy is a 36 to 60 month partial payment plan. The Plan is income based and allows the Debtor to use the payment plan to catch up back payments on a mortgage. Chapter 13 also in some cases lets you cram down or lower the amount of the debt on a car or strip off a second mortgage. Because the plan is income based at the end of the plan the remaining unpaid unsecured loans and credit cards are discharged. Let our Maryland Bankruptcy Lawyer restructure your debt.

Chapter 11 is a business reorganization. It is much more complicated than a restructuring under Chapter 13 . It is usually used to restructure business entities (corporations, LLC or partnerships.) Chapter 11 can be used for an individual but because of the cost it is normally not practical. Chapter 11 does not have a set term. A plan can provide a payoff of debt over many years. It also does not have a debt limitation as does Chapter 13.