Chapter 13 Bankruptcy
Chapter 13 works well for people who have assets to protect and a stable source of income. A Glen Burnie Chapter 13 bankruptcy attorney can review your income, debts and assets to see how Chapter 13 can help you. Many people who do not qualify for Chapter 7 can file Chapter 13. At Robert A. Siegel with the Law Office of Marla Zide, LLC, we help clients decide whether Chapter 13 is the right financial remedy.
Maryland Bankruptcy Law
Maryland law determines what assets are exempt in Chapter 13 bankruptcy, as it does with Chapter 7. However, instead of selling the assets, in Chapter 13 you keep them and make monthly payments on your debts over a three- or five-year period. Assets that are not exempt increase the monthly payment plan amounts. I can help you figure out which assets are not exempt and work out the payment plan.
There are no income limits on filing Chapter 13 the way there are with Chapter 7. However, there are debt limitations. But the limits are set so high that they do not affect most people. You cannot file Chapter 13 if your debts are the same or higher than:
- $360,475 in unsecured debts
- $1,081,400 in secured debts
Debts That Get Paid
Some debts are priority debts and must be paid in full under the Chapter 13 plan. These are child support payments, alimony, recent tax debts, restitution and certain other debts. So, first I include these debts as part of your repayment plan.
The next level of debts to be paid is those that are secured. These debts take priority over unsecured debts in the Chapter 13 payment plan. For most people filing Chapter 13 bankruptcy, this consists of past due mortgage and car payments. Remaining funds go to paying unsecured debts. Chapter 13 repayment plans often reduce or eliminate payments for unsecured debts.
By working with Maryland Chapter 13 bankruptcy lawyers, you can arrive at a realistic plan so you are able to make all your monthly payments. Your payment plan must also include paying off any missed payments for your home, car or other assets you want to keep.
If for any reason you have problems making monthly payments, let me know right away. Job loss, sudden illness or divorce may affect your ability to pay. I figure out a modified plan and work to get it approved.
Discuss Bankruptcy With An Experienced Attorney
For a free initial consultation with a Glen Burnie bankruptcy lawyer about your bankruptcy, contact Robert A. Siegel with the Law Office of Marla Zide, LLC.
Robert A. Siegel with the Law Office of Marla Zide, LLC, is a debt relief agency as described in the federal Bankruptcy Code. This law firm helps people file for bankruptcy relief under the Bankruptcy Code.