When filing for chapter 13 bankruptcy, you have most likely found yourself in need of significant debt relief and at the end of your capacity for dealing with the relentless harassment from your creditors. Unlike the other chapters and options available to you in Maryland, chapter 13 requires a specific set of criteria to be met, along with a higher degree of commitment to financial responsibility by the debtor. Therefore, in Aspen Hill, Montgomery County, it is essential to find the best Chapter 13 Debt Consolidation Attorney in the area to handle your case. This will remove some of the worries an individual may have as to their ability to do everything correctly, as well as give the debtor the chance to understand the process they are considering undergoing.
Unlike chapter 7 bankruptcy which relies on the liquidation of the debtor’s assets to pay the creditors, chapter 13 establishes a payment plan of sorts to pay your debt off after a structured and decided on period. While there may be exceptions for the COVID-19 pandemic, the time you can expect to commit to is either three or five years, depending on the level of debt you have found yourself. Though this may seem overwhelming and confusing with no prior experience, all of your questions and concerns will be able to be answered by a seasoned and experienced Chapter 13 Bankruptcy Attorney. Without the assistance of an attorney, it may be highly challenging to file and may not be possible depending on your situation.
Another benefit to filing chapter 13 bankruptcy is the ability to stay any foreclosure threats you may have. Upon filing, the stay will automatically be placed by court order, and your home will be protected throughout the remainder of the process. With countless clients who have reached out during this exact situation, you can find the expertise and tools to help you protect the house if you face foreclosure.
The debts you have accrued over the years will be split into two categories when filing for chapter 13 bankruptcy. The categories are secured, and unsecured debts and will consist of various debt sources, depending on the details of your situation. Your debt will be consolidated through the completion of a chapter 13 payment plan, and any secured debts will be restructured to allow you to get out from under a crushing amount of debt. It can often be lowered by restructuring the debt to enable you to effectively pay the creditors to whom you owe money. Another significant benefit of filing for chapter 13 bankruptcy is the possibility to protect cosigners of various loans from any negative repercussions.
While a chapter 13 bankruptcy takes a more extended period to complete before being able to move on with your life, there are a few requirements. One is being able to prove a steady stream of income throughout the course of the payment plan and a period before you filed as well. This ensures that you will keep up with your payment structure without falling too far behind. Another restriction is that your income must pass a few guideline checks, one being that it does not exceed a certain amount. The other is that it must meet a requirement for the amount of disposable income on a consistent basis. To determine this, you will take a means test for the state of Maryland, which will examine the various financial aspects of your life.
Some of the factors included in the means test are your income, monthly responsibilities, and any long-term debt like mortgages. After thoroughly examining these factors, you will be informed of if you qualify for bankruptcy in the state of Maryland, and if so, which one will be best for you. It is critical at this point to consult an Experienced Chapter 13 Lawyer to discuss the options available to you moving forward. If it has been determined that chapter 13 is the route you would like to pursue, they will work with you throughout the entirety of the process, ensuring that it runs smoothly and efficiently.
At Kindlund Legal LLC, you will find a team of professional and dedicated individuals committed to assisting anyone who comes through our doors. If you are struggling with debt and don’t know where to turn, reach out as soon as possible. By retaining the services of a Chapter 13 Bankruptcy Attorney as early as possible in the process, you raise the chances of avoiding common mistakes and making the process move as quickly as possible. However, before beginning, it is essential to complete your free initial consultation to discuss your unique situation and goals for your bankruptcy case. Following this, we will tailor your case specifically to you and ensure that you are supported and advocated for at every step along the way. Don’t wait, call today!
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Former Chapter 7 Trustee