When considering filing for bankruptcy, it can be challenging to know whether to file under Chapter 7 or Chapter 13. The main difference between the two is that Chapter 7 allows you to eliminate most of your unsecured debts while Chapter 13 forces you to repay a portion of them over a three to five-year period. However, both have advantages and disadvantages that need to be considered.Chapter 7 bankruptcy is the most common type of bankruptcy filed and is often referred to as “straight” or “liquidation” bankruptcy. It’s called liquidation because if you have any non-exempt assets, they will be sold by the trustee, and the proceeds used to pay your creditors at least some portion of what you owe them. After all, creditors have been paid; any remaining debt is then discharged, meaning you no longer owe it nor must you repay it. In Maryland, certain personal items like a car, home, and others cannot be taken as part of a Chapter 7 filing.To qualify for Chapter 7 protection, you must pass a means test that analyzes your income in relation to your household size, expenses, and other factors. If you fail this test but still qualify for Chapter 13 protection based on other factors, then our skilled bankruptcy attorney at The Phillips Law Offices will proceed to help you file for bankruptcy. To learn more about how we can assist you, feel free to contact us.