Glen Burnie Chapter 13 Attorney
Restructuring Creditor Payment Plans
Before an individual files for bankruptcy, they must take a Means Test to determine if they qualify for Chapter 7 asset liquidation. If test results show they have sufficient income to pay back creditors through revised payment plans, they may be better served by filing Chapter 13 bankruptcy. In a Chapter 13 bankruptcy, a person's disposable income is allocated to creditors over a period of three to five years. Disposable income is any money that is left over after a person's basic living expenses have been paid. The money paid back to creditors can end up being a fraction of what they were previously obligated to pay. In some situations, debts may not be fully paid off when the Chapter 13 plan ends. In cases like these, any remaining debts are discharged. A debt can also be paid off sooner that the three to five year period.
If you are considering bankruptcy, a Glen Burnie bankruptcy lawyer should be consulted to ensure you have complete and accurate information about the process. An attorney can administer the Means Test to find out if you are eligible for Chapter 7, or if you must petition for Chapter 13. If you have important assets that are not exempt in Chapter 7, or debts that can't be discharged, filing for Chapter 13 may be a better option. Chapter 13 can also help a person who is behind on their mortgage and vehicle payments. Our legal team is focused on providing you with the dedicated and aggressive legal representation you need during this difficult time.
Chapter 13 Lawyer Serving Anne Arundel County
There are many different types of living expenses that can be deducted in a Chapter 13 bankruptcy. The bankruptcy trustee will decide which expenses are reasonable and will be allowed based on a household of similar size in your area. Expenses in addition to rent, mortgage and taxes that are considered living expenses include:
- Food
- Clothing
- Utilities
- Your vehicle and car insurance
- Gas
- Health insurance
- Medicine and medical equipment
- Child care
Ward Pratz & Associates, P.A. is a respected bankruptcy firm committed to helping individuals and businesses get out of debt. We will conduct a thorough review of your finances and discuss all of your debt relief options. If you decide to file for bankruptcy, our firm will make sure you know exactly what living expenses you can deduct in Chapter 13. We have a comprehensive understanding of bankruptcy law, and will ensure your rights and interests are protected while skillfully guiding you through the process.
Contact a Glen Burnie Chapter 13 attorney for trusted legal advice if you are no longer able to pay your bills.