Which Bankruptcy Option Is Best For You?
While Chapter 7 bankruptcy may seem ideal, it does not work for everyone or in every situation. In some cases, it may be worth exploring whether Chapter 13 bankruptcy would better resolve your debt problems.
When you work with our firm, Chad Edward Cos, LLC, we take time to understand your situation and goals so as to provide honest advice tailored to your needs. Our Baltimore, Maryland firm has more than 18 years of experience helping clients gain a fresh start through Chapter 13 bankruptcy and other debt consolidation.
Understanding Chapter 13
In filing Chapter 13, all debts are reorganized into a repayment plan that you pay over three to five years. Under this plan, you will make one monthly payment to the bankruptcy trustee, who will distribute the payment among all creditors named in your plan. At the end of your plan, all remaining debt in the plan is complete discharged.
Not all debts can be included in a Chapter 13 repayment plan, including your first mortgage. However, in some cases Chapter 13 can be used to:
- Strip off a lien on your home
- Cram down car loan
- Discharge unsecured debts such as credit card debt, medical bills or personal loans
Why Would Someone File Chapter 13?
Chapter 13 often works well for clients who may not qualify for Chapter 7 bankruptcy under the means test. You may also be required to file Chapter 13 if you have filed for Chapter 7 bankruptcy within the last eight years.
Chapter 13 can also be an effective tool in preventing or avoiding foreclosure. Filing bankruptcy puts an automatic stay on any form of debt collection, including foreclosure, wage garnishment or repossession. Additionally, mortgage arrears, or past-due mortgage payments, may be included within your Chapter 13 repayment plan, giving you time to catch up on past-due payments and keep your home.
Find Out Your Options
We provide the answers and honest counsel you need to make informed decisions about your debt relief options, debt repayment plans and filing for bankruptcy.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.