Baltimore Bankruptcy Lawyer – Chapter 13
(Reorganization)As for those individuals living in the Baltimore area who exceed the income requirements of a chapter 7, you may eligible to file chapter 13 bankruptcy. Chapter 13 bankruptcy is also referred to as re-organization and it involves consolidation of your debts into one single payment plan that is either a 3 or 5 year plan, to help you pay back part of the debt.
A Baltimore area individual filing this type of bankruptcy can save a home from foreclosure by paying back missed mortgage payments over the course of the reorganization plan. Once you have made all payments required under the plan and the money has been paid to your creditors, you will receive a discharge. It is possible that some of your debts may be eliminated without paying anything on them.
You may also be able to pay less than what you owe on your property because the law allows you to pay only the fair market value. For example, you own a vehicle for which you paid $25,000.00 and you owe $15, 000.00 on it. However, the vehicle is now only worth $10, 000.00. Chapter 13 allows you to reduce your balance to what the vehicle is worth and any amount above the $10K is treated as unsecured debt, which means you only pay a small percentage of it back. This process is known as ‘cram down’.
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Quick points about chapter 13 bankruptcy.1. For individuals only.
2. Requires a debt repayment plan.
3. Can remove liens from your home.
4. Can cram down your car loans.
4. Plans are either 3 or 5 years long.
5. Debt limits apply. Call now for a free consultation in the Baltimore area and find out how I can help you. 443-982-0475. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Remember that for those who qualify under the federal bankruptcy laws, I can help you Stop Collection Calls, Stop Garnishments, and Stop Foreclosure. Your new beginning starts here.