Chapter 13

A Chapter 13 is a reorganization plan that can stop creditor harassment, lawsuits, wage and property garnishments, and foreclosure. The mechanism permits the debtor to reduce debt payments, prioritize, and consolidate, and in some cases eliminating all debts. A stay is in process when filing for Chapter 13 relief. The reason for Chapter 13 is to permit to develop a plan to pay a part, all, of your debts based on what you can afford each month. We can assist you to see if you are eligible for Chapter 13 relief.

There are advantages to file for Chapter 13 instead of filing Chapter 7. One advantage is that you want to repay some of your debts but without the high interest rates that are being charged to you. You would need bankruptcy protection, so you would not be sued while you are repaying the creditors over a period of time. With debt settlement, it does not protect you from lawsuits from creditors. You may want to pay back the creditors under a Chapter 13 because you believe it is a right thing to do. While a Chapter 7, it is straight liquidation process.

You are behind on your payments on your home and car and you want the opportunity to be able to repay them without losing your home and car. You are intended to catch up with your bills with a Chapter 13 and need a chance to be current on your payments. This cannot be done in Chapter 7, but catching up on payments can be done through a Chapter 13. You owe more than the value of your house on your first mortgage. You are underwater on your home meaning the first mortgage is greater than the fair market value of your house. You can get rid of the second mortgage and a pay a small amount through a Chapter 13 bankruptcy and only pay the first mortgage after the Chapter 13 payment plan is completed successfully.

Another reason in filing a Chapter 13 bankruptcy is that you own more property than you can protect in a Chapter 7 as opposed to losing the property where you want to repay the creditors to keep the property that you have. If you have too much property to protect, in a chapter 7 that property can be sold by the bankruptcy trustee to satisfy creditors, whereas in a Chapter 13 you are able to keep them.

You have already filed Chapter 7 bankruptcy and you are not within the 8 year time period to file another Chapter 7 bankruptcy because you need a fresh start again because the payments are just too much, but instead you are able to file a Chapter 13 under a certain period of time as defined in the Bankruptcy code.

Debtor’s Solutions

In Chapter 13 filing, if you have a second mortgage, you may be able to strip or remove the lien from your home. In the Bankruptcy word, it is lien stripping when the market value of the your home is less than the value of your first mortgage, then the additional mortgages can be discharged in bankruptcy. Also for vehicles, the loan can be reduced to the fair market value of your vehicles. Both mechanisms can provide majors to the debtor.

Contacting Us:

If you are struggling paying your bills, contact the Soubra Law Firm to schedule an appointment.

As your Frederick Bankruptcy Chapter 13 Attorney, the Law Firm is here to serve Frederick, Montgomery, Washington, and Carroll Counties as well as the remaining Maryland area. The Firm would like to be your Bankruptcy Chapter 13 Lawyer.