Is Chapter 13 Bankruptcy The Right Solution For You In Maryland?
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- Is Chapter 13 Bankruptcy The Right Solution For You In Maryland?
At the Law Office of Erica R.S. Hunt, LLC, we understand that financial struggles can feel overwhelming. If you’re considering bankruptcy as a way to regain control of your financial future, you might be wondering whether Chapter 13 bankruptcy is the right path for you.
As experienced Maryland Chapter 13 bankruptcy lawyer, we are here to guide you through the process and help you determine if this option suits your unique situation.
Let’s look at the ins and outs of Chapter 13 bankruptcy, explain who qualifies, and highlight the benefits of choosing this route. Let’s dive in to see if Chapter 13 bankruptcy is the solution you’ve been searching for.
Chapter 13 bankruptcy, also known as the “wage earner’s plan,” allows you to reorganize your debt and create a manageable repayment plan.
Unlike Chapter 7, which can eliminate debts, Chapter 13 enables you to keep your property while repaying creditors over a 3-to-5-year period.
Here’s how it works:
● You propose a repayment plan to your creditors, typically lasting 3 years if your income is below the state median, or 5 years if your income exceeds the median.
● During the repayment plan, creditors are prohibited from pursuing collection efforts.
Chapter 13 bankruptcy might be right for you if:
● Retain Your Property: If you’re behind on mortgage or car payments, you can catch up on missed payments and avoid foreclosure or repossession.
● Protect Co-signers: It protects your co-signer from creditor collection efforts by including their debt in your repayment plan.
● Manage Non-Dischargeable Debts: Certain debts, such as student loans or child support, are not dischargeable in bankruptcy but can be addressed through a structured repayment plan.
● Avoid the “Fresh Start” Restrictions of Chapter 7: If you’ve previously filed for Chapter 7 bankruptcy and received a discharge, you must wait several years before filing again. Chapter 13 offers an alternative solution.
To qualify for Chapter 13 bankruptcy in Maryland, you must:
● Have a regular income to support monthly payments.
● Meet specific debt limits (secured and unsecured).
● Not have had a recent bankruptcy discharge.
● Stay in Control of Your Property: Unlike Chapter 7, Chapter 13 allows you to keep your property.
● Protection from Creditors: Creditors must stop all collection efforts once you file.
● Flexible Repayment Plans: You can propose a repayment plan tailored to your financial situation.
● Credit Score Impact: Although it affects your credit, Chapter 13 may allow for a quicker recovery than Chapter 7.
For guidance on whether Chapter 13 bankruptcy is the right choice for you, contact a Maryland Chapter 13 bankruptcy lawyer at the Law Office of Erica R.S. Hunt, LLC today!
