Baltimore Chapter 13 Bankruptcy Lawyers

Handling Cases Throughout Maryland 

While it is possible to consolidate debt through a credit repair company, remember that Chapter 13 bankruptcy is the only true debt consolidation and elimination method. Not only does Chapter 13 grant time to repay debt but Chapter 13 also grants several governmental protections against debt collectors.

Calling Sanchez Garrison & Associates LLC for a Chapter 13 bankruptcy consultation call, creating an affordable and reasonable payment plan, and finding financial freedom can start today.

Call Sanchez Garrison & Associates LLC today at (410) 406-7372 or contact us online to schedule a meeting with our Chapter 13 bankruptcy attorney in Baltimore!

What Can Chapter 13 Bankruptcy Help People Do?

• Stop foreclosure proceedings: While your mortgage still needs to be paid, Chapter 13 can ensure your house cannot be foreclosed on. Sometimes, the mortgage amount may be modified to make the payments more manageable.
• Protect your co-signers: Contrary to Chapter 7, Chapter 13 bankruptcy protects you and any co-signers from having collection action taken against you, even while you are in your repayment plan. Your co-signer will have significantly more protection than if you were to file for Chapter 7 bankruptcy.
• Save your vehicles: Chapter 13 bankruptcy is often used to help prevent debtors and creditors from repossessing your vehicle. Overdue payments and the remaining finance amount will be consolidated into the repayment plan.

It is important to note that Chapter 13 cannot consolidate student loans. With both types of bankruptcy (Chapter 13 and Chapter 7), student loans are NOT eliminated. However, Chapter 13 can allow you to consolidate your student loans to make them more manageable. After successfully filing Chapter 13, collection actions for your student loans will stop, making your life less stressful.

Consequences Of Filing Chapter 13 Bankruptcy 

Similar to Chapter 7 bankruptcy, if you successfully file for Chapter 13 bankruptcy, it will remain on your credit report for up to seven years. This can make it very difficult to apply for any sort of loan or credit since you are often not allowed to apply for any new credit. Even if you manage to secure a loan, the interest rate will likely be high for the seven years that it remains on your credit report. Also, with Chapter 13, you can expect a drop in your credit score. Though many factors are going into exactly how much, like your current score, you can expect a drop anywhere from 25 to 125 points. As mentioned above, you will also need to pay back your agreed-upon debts over three to five years. Should you fail to make your payments, you will likely have to go back to court for further review of the situation, and you may potentially be forced to sell off some of your assets to pay the debts.

Chapter 13 bankruptcy arguably has less severe consequences than Chapter 7. However, it has genuine and serious consequences of its own.

Debt Reorganization & Repayment

The central aspect of your Chapter 13 bankruptcy case is your new debt repayment plan that will be proposed to your creditors and the court. This plan must include all your debts and can be made with our assistance. Even if you carefully consider your plan, the creditors will have the ability to object. However, it will likely be approved if you can make a plan to everyone's satisfaction. Payments begin the month following your filing.

You will need to repay the following if you choose Chapter 13 bankruptcy:

• Priority debt: Priority debts include child support, tax obligations, and alimony arrearages.
• Secured debt: You can usually keep your car or house, but you must keep paying on your car loan or mortgage. The court decides whether these amounts will be included as part of your plan or not.
• Unsecured debt: This plan applies your disposable income and allowed living expenses toward debts such as credit card balances or medical bills. In some cases, you will not need to fully repay these debts or even pay them, assuming you can show you are putting the remaining income toward their payment.
• Value of non-exempt property: If you can afford to do so, you can keep all your property in a Chapter 13 bankruptcy.

What Are the Requirements for Chapter 13 Bankruptcy?

We recommend calling a bankruptcy lawyer like Sanchez Garrison & Associates, LLC in Baltimore if you are considering bankruptcy. Professionals often give free assessments or initial advice to get more definitive answers to your situation.

There are some monetary and informational requirements you'll need to fulfill when filing for Chapter 13 bankruptcy. These include:

• You must pay the mandatory $235 filing fee to the court, around $75 in administrative fees, and whatever fee your bankruptcy lawyer charges
• Provide a list of the agencies you owe money to and how much
• Provide a list of the properties you own
• Provide a list of all the contracts and leases in your name
• Provide a detailed account of your monthly budget (income and expenditures)
• Provide any tax information you have, like W2 forms and tax returns
• You must have no more than $394,725 in debt that is not exempt (Examples: credit card debt, personal bills, medical expenses, etc.)
• You must have no more than $1,184,200 in exempt debt (Examples: mortgages, auto loans, etc.)
• You must not own a business or be a proprietor for Chapter 13 bankruptcy
• You must show that you have a reliable income and can make monthly payments towards your debts