Protecting Yourself With A Chapter 13 Bankruptcy Repayment Plan

The purpose of a bankruptcy proceeding in Baltimore is to lessen your problematic financial obligations

. Any time you file for bankruptcy protection in MD, creditors will be prevented from performing measures to recover unpaid debts. Once these creditors' activities are ended in a Chapter 13 bankruptcy proceeding, you can organize your debts, lower the amount of your payments, and help make those repayments over an extended period of time.

Not everybody is eligible for chapter 13 bankruptcy. This is because Chapter 13 requires you to continue to repay your unresolved debts. Therefore, to be eligible, you will need a consistent source of income. If your income is not routine, or if it is not enough, the bankruptcy court may refuse your petition to file for chapter 13 bankruptcy.

In addition, if you have an excessive amount unresolved debt, you will not be eligible for chapter 13 bankruptcy. In order to file, your secured and unsecured debts cannot exceed the regulated thresholds.

Secured debts are those that are collateralized by personal assests, such as your home or your car. Unsecured debts are those that are not secured by personal property such as credit card bills. To find out if you are eligible for chapter 13 bankruptcy in Maryland, you can get the advice of an experienced MD bankruptcy attorney.

Before you are a candidate to file for chapter 13 bankruptcy, you must first obtain credit counseling. Once this has been done, you will be required to pay a filing payment. With this payment you will have to submit various forms.

At the time your petition for chapter 13 bankruptcy has been filed, and the process has commenced, an automatic stay will go into effect, which will stop your creditors from taking actions to collect on your unresolved debts. This will protect your home against foreclosure, your car against repossession, and your wages and bank accounts against garnishment.

Toward the end of the Chapter 13 bankruptcy process, you will be required to go to a meeting of creditors. This is where you will distribute your restructured plan to repay your unresolved debts. In your plan, you can schedule monthly payments that will appease your creditors. As pointed out above, this restructuring can lessen your monthly payments over a longer time period.

by: Matt Jacobs.

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