A Maryland Chapter 13 Bankruptcy is a court-approved restructuring of personal and family debt. Under a Chapter 13 bankruptcy, you will create and maintain a specific payment plan which is based upon several factors. While you don’t have to pay off all of your debts, certain types of debt, called priority claims will be paid back. If you owe taxes, spousal support or child support, you will be required to repay those debts in full under the payment plan. Filing for a Maryland Chapter 13 bankruptcy may be an option for you if you have sufficient income to make partial repayment to creditors, and you want to be able to retain ownership of all of your property and assets.

While you will have to consult with the bankruptcy trustee before making any significant financial decisions over the course of your repayment plan, Maryland Chapter 13 bankruptcy filers typically have the benefit of being able to have a payment plan that they can live with.

Maryland Chapter 13 bankruptcies can be complex due to the extended nature of the process. Typically speaking, a Chapter 13 repayment plan can take anywhere from 3 to 5 years, depending upon your ability to pay, the amounts you owe, and several other factors. During this time you will be expected to use all of your disposable income to pay down your debts – on the plus side, your creditors must accept the repayment plan, once it is sanctioned by the court. This means that even if a creditor is paid pennies on the dollar, or nothing at all, that creditor cannot demand further payment once the conditions of the Maryland Bankruptcy have been satisfied.

Because the laws surrounding Chapter 13 bankruptcies can be confusing, it helps to have the legal guidance and representation offered by a Maryland Bankruptcy Lawyer. Our firm can provide you with timely information that will help you decide if Chapter 13 is right for you. If you do decide to file, we will help you to meet all the requirements of Chapter 13 bankruptcy in a timely fashion, while preserving your legal right to financial relief. If you are struggling to keep up with bills and are starting to feel overwhelmed, don’t wait until it’s too late – contact Behzad Gohari and The Gohari Law Firm, LLC today and arrange for a free initial Maryland Bankruptcy case evaluation to find out if you can benefit from Chapter 13 bankruptcy relief.