Chapter 7

A Chapter 7 bankruptcy is a liquidation bankruptcy.  Generally, all of the debtor’s assets are either exempt or subject to secured creditors’ liens, in which case no assets are liquidated and administered for the benefit of unsecured creditors. When this is not the case, the bankruptcy trustee liquidates all of the debtor’s non-exempt assets and distributes the proceeds to creditors in order of priority and to general unsecured creditors on a pro-rata basis. With certain exceptions, the debtor is then discharged of any legal obligations to pay any debts owed at the time bankruptcy was filed.   This does not include any family members who do not file jointly with you.  This is something we can discuss further. 

Chapter 13

Chapter 13 cases work as intended for debtors with regular income who have a good faith argument  that they will be able to repay their creditors within a more favorable time line. Under Chapter 13, you, the debtor would formulate a plan with the help of an attorney to repay your creditors. The debtor’s attorney presents the plan of repayment to the court for confirmation. Once the court confirms the plan, the debtor pays the trustee a certain amount of money, which is based on the individual’s projected disposable income over the length of the plan, each month for three or five years (depending on the debtor’s income). The trustee then distributes the payments to the creditors in accordance with priorities established by the Bankruptcy Code and as set forth in the debtor’s repayment plan. One feature worth noting is that, so long as monthly payments are made you, the debtor, would keep all of your unsecured assets (unless the assets are encumbered by liens and the lender forecloses). There are certain eligibility considerations we can discuss based on your income.

As experienced Negotiation Counsel for Employees for nearly fifteen years, Mark A. Lancaster has been counseling employees through all phases of the employment relationship. From CEOs to hourly earners, to everyone in between, Mark has guided professionals in successfully negotiating and navigating the most crucial moments in their careers.

We provide legal advice on a range of day-to-day personnel matters, such as employment agreements and policies, and counsel clients on harassment, disciplinary actions, labor management relations, workplace investigations, wrongful terminations, employment discrimination issues; and workplace immigration issues.

Mark actively engages in community service on behalf of the DC Pro Bono Center; and the Maryland Coalition of Families, Inc., a 501(c)(3) nonprofit organization based in Columbia, Maryland, dedicated to caring for loved ones with behavioral health needs and advocating for the systems designed to support them.  This enables Lancaster to better understand your unique organizational needs.