Review Your Options With A Rockville MD Chapter 13 Bankruptcy Lawyer
Consumers with a large volume of outstanding debts should consider the benefits that come with a chapter 13 bankruptcy claim. Among these benefits are an automatic stay, a plan that provides up to five years to complete, and can eliminate some debts immediately. If you wish to file a claim or explore the benefits, you should contact a Rockville MD Chapter 13 Bankruptcy Lawyer today.
The First Steps
The median income for Rockville is $86,085. To establish eligibility for chapter 13, the claimant’s income must be greater than this value. Any value less than the median income qualifies the claimant for chapter 7 only. However, if they have an income that is greater than this average they can qualify for either chapter.
All consumers who wish to file a bankruptcy claim are required by law to attend a credit-counseling program that is approved by the state of Maryland. This course provides them with effective methods for managing their finances. It also presents them with concepts that help them reestablish their credit after their bankruptcy case ends. Once the claimant acquires a certificate of completion, he or she can proceed through the bankruptcy process.
Your Debts
Your Rockville MD Chapter 13 Bankruptcy Lawyer needs a copy of invoices, which provide detailed information about your debts. This includes accounts that are in collections. He or she needs to calculate a total value for these debts to include in the bankruptcy claim.
Discharged Debts
While the court may discharge unsecured credit cards that are in collections, it is less likely that they will eliminate any government-based debts such as student loans. However, any debts in which the court determines that the creditor has collected the funds through other means. For example, if the debt was covered by an insurance claim or if the original creditor sold the account to a third-party, it is more likely to be discharged.
Consumers who need help with debt can seek a resolution through bankruptcy. The court allows them to present a three-to-five year repayment plan that allows them to pay their debts off over time. This may allow them enough time to catch up any overdue mortgage payments and prevent foreclosure completely.
