Stephen Hearne, Attorney

Bankruptcy is not always the best route to solving an individual's financial problems. The first issue we need to solve is whether bankruptcy will help you. While bankruptcy will help the vast majority of the clients I interview, occasionally that is not the case. I will not recommend that you file bankruptcy if that would not truly benefit you.

One form of bankruptcy is called a Chapter 7 proceeding, also referred to as a "liquidating bankruptcy". In a Chapter 7 proceeding, the Debtor lists all of his or her assets, but then identifies which assets the Debtor will claim as exempt (not available for liquidation by the bankruptcy trustee appointed by the Bankruptcy Court to sell any non-exempt assets. Asset exemptions are limited by Maryland law, but more often than not, my clients can exempt all of there assets.

Not all debts are dischargeable (extinguished), but most are. Taxes that are less than three years old are not dischargeable. Student loans are generally non-dischargeable, but can be discharged if repayment will cause "undue hardship". This standard is extremely hard to meet.

Please call my office to make an appointment today to review your financial situation and start you on the road toward financial recovery.

• Wicomico County, Eastern Shore Bankruptcy and Maryland State Bar Associations

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