Debt Reorganization
& Repayment

 

Debt Reorganization & Repayment in Baltimore, MD

Handling Cases Throughout the Entire State of Maryland

If you plan to restructure and repay your debt through Chapter 13 bankruptcy, our attorneys at Sanchez Garrison & Associates, LLC, offer ongoing support after you have filed. We understand your financial circumstances and will work with you to develop a personalized repayment strategy.

Your Chapter 13 plan outlines how you will pay creditors over a period of 3 to 5 years, including all relevant debts. With our guidance, we can develop a plan tailored to your financial capabilities and current situation, making it easier to manage your debts. 

Don’t navigate Chapter 13 alone. Call us at (410) 406-7372 or schedule a consultation for personalized repayment strategies with our debt reorganization & repayment attorney in Baltimore.

Benefits of Chapter 13 Bankruptcy

Chapter 13 bankruptcy provides individuals with a structured way to repay their debts while offering several significant benefits.

  • Debt Consolidation: Chapter 13 helps consolidate your debts into one manageable monthly payment. Instead of juggling multiple payments to various creditors, you pay a fixed amount to a bankruptcy trustee, who then distributes it to your creditors. This simplifies your finances and reduces the stress of managing multiple payments.
  • Protection from Foreclosure and Repossession: One of the key benefits of Chapter 13 is the protection it offers from foreclosure on your home and repossession of personal property, such as your car. By filing for Chapter 13, you can stop these actions and bring your overdue payments current over time.
  • Avoiding Wage Garnishment: If your wages are being garnished, Chapter 13 can put an immediate stop to this process. The bankruptcy court’s automatic stay prevents creditors from taking further actions to seize your wages, allowing you to retain more of your income to cover essential living expenses and repaying your debts.
  • Automatic Stay: The automatic stay is a powerful tool that halts most creditor actions, including collection calls, lawsuits, and wage garnishments. This provides immediate relief and gives you time to restructure your finances.

Impact on Credit Scores and Future Borrowing

  • Impact on Credit Report: While filing for Chapter 13 may initially lower your credit score, it also provides an opportunity to rebuild your credit. As you make regular payments under your repayment plan, you demonstrate to future lenders that you are committed to repaying your debts.
  • Rebuilding Your Credit After Chapter 13: To rebuild your credit after completing your plan, it is important to make timely payments, keep credit utilization low, and avoid accumulating new debt. With diligence, you can restore your financial standing over time.

Modifying a Chapter 13 Plan

Life can bring unexpected changes, and if your financial situation shifts during your repayment plan, Chapter 13 offers the possibility of modifying your plan. Whether due to a job loss, health issue, or other setbacks, our attorneys can assist you in adjusting your repayment terms to accommodate your new circumstances.

Common Mistakes to Avoid

  • Not Understanding Repayment Obligations: It’s crucial to fully understand the terms of your repayment plan. Failing to comply with these terms can result in the dismissal of your case or the loss of your property.
  • Failing to Include All Debts: Ensure that you include all your debts in your Chapter 13 filing. Missing debts can create complications and may result in future collection actions.

Chapter 13 bankruptcy provides a path to financial recovery, and with expert guidance, you can achieve a successful outcome and secure long-term stability.

Guiding You Through Baltimore's Chapter 13 Bankruptcy Process

Even with a carefully crafted plan, Chapter 13 is a complex legal process. As your trusted advisors, we will walk you through every step of the process, from filing to discharge. We will represent your interests in all negotiations and hearings to secure court approval of your plan.

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 we can devise a plan to meet everyone’s satisfaction. Payments begin the month following your filing.

Call us at (410) 406-7372 or schedule a consultation for personalized repayment strategies with our debt reorganization & repayment attorney in Baltimore.

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 in your plan.
  • Unsecured debt — This plan applies your disposable income and allowed living expenses toward debts such as credit card balances or medical bills. Sometimes, you will not need to repay these debts fully, assuming you can show you are putting the remaining income toward other creditors.
  • Value of non-exempt property — If you can afford to do so, you can keep most of your property after filing for Chapter 13 bankruptcy.

Take the first step toward financial stability. Call (410) 406-7372 or contact us online for a free case evaluation. 

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