The intention of bankruptcy in Annapolis is to ease your daunting outstanding debts. Whenever you file for individual bankruptcy in Baltimore, creditors will be stopped from taking actions to recoup unsettled debts. Once these creditors’ measures are halted in a Chapter 13 bankruptcy proceeding, you can restructure your debts, lower the amounts you owe, and help make those repayments over a longer period.

Not every person is eligible for chapter 13 bankruptcy. This is mainly because Chapter 13 necessitates you to continue to repay your unsettled debts. Therefore, to be a candidate, you will need a reliable source of income. If your income is not consistent, or if it is not sufficient, the bankruptcy court may deny your petition to file for chapter 13 bankruptcy.

Furthermore, if you have an excessive amount unpaid debt, you will not be qualified 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 determine if you are eligible for chapter 13 bankruptcy in Baltimore, you can get the guidance of an experienced Maryland bankruptcy lawyer.

Before you are entitled to file for chapter 13 bankruptcy, you must first get credit counseling. Once this has been done, you will be required to pay a filing payment. With this charge you will have to provide several forms.

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

In the end of the Chapter 13 bankruptcy process, you will be required to show up at a meeting of creditors. This is where you will apply for your restructured plan to repay your delinquent debts. In your plan, you are able to schedule monthly payments that will appease your creditors. As pointed out above, this restructuring can lower your monthly payments over an extended time period.

If you have questions about chapter 13 bankruptcy in Baltimore, you can speak to a Baltimore bankruptcy lawyer. An experienced Annapolis bankruptcy lawyer can guide you through the bankruptcy process so you won’t make any costly mistakes.