It is not uncommon for people to be in a quandary on which Chapter to file for - Chapter 7 bankruptcy or Chapter 13.

According to a chapter7 bankruptcy lawyer Northern Virginia, Chapter 7 is a better choice for most people.

The reasons are very compelling.

People can keep most of their property and the Chapter 7 process is quicker.

As a chapter 7 bankruptcy Maryland lawyer pointed out, “One outstanding advantage is you can keep your house and car in some situations”.

There is more. You can exempt the equity on your property and even continue to make payments on your car and house loan if you are still current.

Typically, the ideal candidates for Chapter 7 are those:

•who own meager property

•have balances on credit cards, medical bills, and some types of personal loans

•whose income is less than the state median

But, you must keep in mind the following:

If after considering all allowable expenses, including payments for secured debts, child support, and tax, you still have adequate income left to make payments to your lenders, then you will not be eligible for Chapter 7 Bankruptcy.

If you are still confused which Chapter you must apply for, it is a good idea to seek help from a competent chapter 7 bankruptcy Northern Virginia lawyer.

In the case of Chapter 7, you need to fill Chapter 7 Means Test calculation form.

The objective of this Means Test is to find out if your income is low enough to qualify for Chapter 7 bankruptcy.

“It is a modus operandi crafted to keep high income earners away from filing Chapter 7”, says a chapter 7 bankruptcy Maryland attorney.

If you fail the Means Test, you must go for Chapter 13, in which case you must complete the Chapter 13 Calculation of Your Disposable Income form.

Carrying out the official work for filing for bankruptcy is typically a straightforward process. You just need to follow the user-friendly instructions outlined on the top of each page.

Yet you may need an attorney to help you out, because before filing you must understand the legal requirements as to whether you will be able to protect your property, and whether your debts qualify for a discharge.

In any case, to find the applicable law for Exempt Property, you must refer to your state’s exemption statutes.

In the case of Maryland, the common bankruptcy exemptions include:

Insurance and damages

•Motor Vehicles


•Personal property up to a specified limit

Retirement benefits

Retirement accounts that are tax exempt

Many senior Americans seek bankruptcy relief because of the high inflation and health care costs. Despite the fact that they enjoy certain benefits over other debtors, seniors must still make the right choice because some may stand to lose a lot of property.

Seeking counsel from a good bankruptcy attorney is the best bet.

Author's Bio: 

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Law Office of Rowena N. Nelson is among the top lawyer firms in Maryland. This law firm provides a wide range of legal services, including bankruptcy law, criminal law, and family law.