Chapter 13 of the Bankruptcy Code offers a pathway for individuals and small business owners to reorganize and reduce debts with a manageable repayment plan. Filing for Chapter 13 bankruptcy can help you:

  • Stop wage garnishment
  • Prevent home foreclosure
  • Halt car repossession
  • End collections activities
  • Implement a practical debt repayment plan
  • Rebuild your credit

MARYLAND CHAPTER 13 BANKRUPTCY OVERVIEW

Who Can Qualify For A Chapter 13 Bankruptcy?

Chapter 13 is ideal for individuals or small business owners who want to protect their assets and have the means to meet monthly repayment obligations. To qualify, you must meet the following criteria:

  • Debt Limits: Your total secured and unsecured debts must fall below a specific threshold. Since these limits change often, consult with an experienced bankruptcy attorney to confirm your eligibility.
  • No Corporations or Partnerships: Chapter 13 is exclusively for individuals, though it can address business-related debts incurred personally.
  • Ability to Pay: You must demonstrate a stable income source to meet the payment terms of the repayment plan.

Benefits of Filing for Chapter 13 Bankruptcy in Maryland

Chapter 13 bankruptcy provides a structured solution for managing and reducing debt while safeguarding your most important assets. Key benefits include:

  • Protection for your home, car, and other significant assets
  • A reasonable repayment plan, typically spanning 3 to 5 years
  • The ability to catch up on missed mortgage or car payments
  • The opportunity to pay off non-dischargeable debts, such as certain taxes or past-due support obligations

By reorganizing debts, you can free up cash flow, making it easier to meet ongoing financial commitments and regain control of your finances.

First Steps in Filing for Chapter 13 Bankruptcy

If you are considering Chapter 13, working with an experienced attorney is essential. State and federal bankruptcy laws are complex and subject to change. Your attorney will begin by assessing your financial situation, including your income, debts, and assets, and prepare the necessary paperwork to file your petition.

Once filed, you’ll start making monthly payments under the proposed repayment plan within 30 days. The entire process typically takes one to five months to finalize.

What to Expect During the Chapter 13 Process

Automatic Stay

Upon filing, an automatic stay immediately halts all debt collection activities. This includes stopping wage garnishments and preventing repossessions or foreclosure proceedings.

Trustee and Creditor Involvement

The court will appoint a trustee to manage your case. Shortly after filing, you’ll receive a notice with details about your case, including a date for the meeting of creditors, the confirmation hearing, and deadlines for creditor claims.

Meeting of Creditors

At the “341 meeting,” a trustee and creditors may ask questions about your financial circumstances and proposed repayment plan. Your attorney will guide you on what documentation to bring and how to prepare for this meeting.

Repayment Plan Implementation

Once your plan is approved, you’ll begin making payments to the trustee, who will distribute funds to creditors. You’ll receive regular updates on payment progress and remaining balances.

Achieve Financial Stability

Struggling with overwhelming debt can be incredibly stressful. Chapter 13 bankruptcy provides a viable solution to protect your assets, reduce debts, and regain financial stability. The experienced team at Sirody Bankruptcy Center is here to help Maryland residents navigate this challenging process. Contact us at (410) 415-0445 to learn more about how Chapter 13 bankruptcy can provide the fresh start you need.

UNSURE IF CHAPTER 13 BANKRUPTCY IS RIGHT FOR YOU?

Our Maryland bankruptcy attorneys can assess your financial situation and present you with all of your options. Schedule a free consultation with one of our attorneys.

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