Why Hire a Chapter 13 Lawyer Before Filing for Chapter 13 Bankruptcy
If you are financially in a tough spot and looking for a way out of the maze of debts, filing for bankruptcy can be the only solution. However, it is not easy to file for bankruptcy in the US. The process is complicated and some steps may be beyond your comprehension.
You may file for bankruptcy under Chapter 7 or Chapter 13 of the bankruptcy laws. Chapter 13 allows debtors to file a debt repayment plan designed to repay all or part of their debts within a specific time frame while protecting you from calls and harassment from your creditors.
Why Using the Services of a Bankruptcy Lawyer is Highly Recommended
While it is not mandatory to have a lawyer while filing for bankruptcy, it is highly recommended that you hire a reputed chapter 13 bankruptcy lawyer MD as it is a complicated subject and it is likely that some provisions of the law have changed in the recent past. Besides, any error in filing can result in the rejection of your bankruptcy application. This can land you in more trouble.
You must talk with a chapter 13 bankruptcy lawyer MDbefore filing a Chapter 13 bankruptcy to make sure that the filing is completed smoothly and as directed by the local and federal laws. You must also note that hiring a good attorney for a Chapter 13 case can cost you money.
Conditions For Qualifying for Chapter 13 Plan
There are some preconditions for qualifying for Chapter 13 bankruptcy Maryland.
- The court will check if you earn a regular income. It can come from any source including government benefits, or spousal support.
- The ceiling for unsecured debts and secured debts is fixed under Chapter 13.
- The term for chapter 13 bankruptcy is also fixed at five years.
- You are not eligible for a Chapter 13 discharge if you have received one in a Chapter 7 case filed within the last four years.
The Steps Involved in Filing for Chapter 13 Bankruptcy
Filing a Chapter 13 plan involves specific steps. Your Chapter 13 lawyer will prepare a financial summary of your debts and break it down to individual creditors. A list is also created of your assets, income, and expenditure. The summary must also include the plan for making a monthly payment to creditors. The plan will be scrutinized by the authorities before it is approved. There are court-approved forms available to prepare and present your Chapter 13 plan.
The Courses You Must Complete
It is also mandatory to complete a credit counseling course before you can file for bankruptcy. The certificate of completion is valid for 180 days. There is also a debtor-education course to be taken after filing for bankruptcy and before you get a final discharge from the debts. There is a fee to be paid for the courses which can be completed online.
You must consult your Chapter 13 bankruptcy lawyer MD to know more details about the bankruptcy law and the benefits associated with Chapter 13 plans.