Know Your Chapter 13 Bankruptcy Eligibility Before Hiring A Lawyer In Maryland
If you are considering hiring a Chapter 13 bankruptcy lawyer in Maryland, the first step is to find out if you are eligible, as not everyone can file for a chapter 13 bankruptcy. For most people facing debt, Chapter 13 bankruptcy may be the right choice. However, there are eligibility norms that state specific criteria.
What does Chapter 13 bankruptcy involve?
Also referred to as reorganization bankruptcy, those who are eligible to file can retain their property, but honor their debts over a certain period, usually three or five years.
What is the eligibility criteria?
First and foremost, businesses cannot file for a Chapter 13, regardless of whether it is a sole proprietorship. You can, however, apply as an individual and reorganize your business debts since you have personal liability.
If your profession is of a stockbroker or commodity broker, you are not eligible to file even as an individual.
Under Chapter 13, the bankruptcy court requires you to reveal adequate disposable income after leaving yourself enough for living expenses and loan and mortgage payments, so that you can handle those debt repayments. In fact, some of your debts have to be paid back in full. There are also rules about which debts must be honored in full.
How can you fund a Chapter 13 repayment plan?
Sources from which you can raise the money to implement your repayment plan under chapter 13 are:
€ Your salary or wages
€ Any income you earn from self-employment
€ Wages that you may earn from occasional work
€ Sales commission or part-time work earnings
€ Payments received through pension plans
€ Any benefits you may receive from social security
€ Disability benefits
€ Unemployment benefits
€ Welfare money received
€ Money received for child support and alimony
€ Product royalties earned
€ House rent received
€ If you have sold property, the funds received through this
For married couples, where only one spouse is employed, the non-working spouse may file for a chapter 13 bankruptcy and make use of the funds available with the working spouse or file jointly with the employed spouse.
Limit on secured debts and unsecured debts
Chapter 13 mandates that the individual's total secured debts and unsecured debts must be under a certain limit, which may vary based on inflation from time to time.
Secured debts are those debts where you lose the collateral, if you don't honor your debt or when the IRS files a lien on your assets.
Unsecured debts are those debts where you do not lose your assets. Examples are credit card debts, medical bills, lawyer's fees, and pending utility payments.
Finally, your income tax filing must be up to date for the last four years, with proof, to be eligible to file for a chapter 13.
Since the procedure is complicated, it is best to hire an experienced bankruptcy law firm in Maryland to guide you.
Resource Box
Filing for bankruptcy can involve complex procedures. Hire a chapter 13 bankruptcy lawyer in Maryland to steer you smoothly through the process. To contact a reputable bankruptcy law firm in Maryland,
visit http://www.rnnlawmd.com/
What does Chapter 13 bankruptcy involve?
Also referred to as reorganization bankruptcy, those who are eligible to file can retain their property, but honor their debts over a certain period, usually three or five years.
What is the eligibility criteria?
First and foremost, businesses cannot file for a Chapter 13, regardless of whether it is a sole proprietorship. You can, however, apply as an individual and reorganize your business debts since you have personal liability.
If your profession is of a stockbroker or commodity broker, you are not eligible to file even as an individual.
Under Chapter 13, the bankruptcy court requires you to reveal adequate disposable income after leaving yourself enough for living expenses and loan and mortgage payments, so that you can handle those debt repayments. In fact, some of your debts have to be paid back in full. There are also rules about which debts must be honored in full.
How can you fund a Chapter 13 repayment plan?
Sources from which you can raise the money to implement your repayment plan under chapter 13 are:
€ Your salary or wages
€ Any income you earn from self-employment
€ Wages that you may earn from occasional work
€ Sales commission or part-time work earnings
€ Payments received through pension plans
€ Any benefits you may receive from social security
€ Disability benefits
€ Unemployment benefits
€ Welfare money received
€ Money received for child support and alimony
€ Product royalties earned
€ House rent received
€ If you have sold property, the funds received through this
For married couples, where only one spouse is employed, the non-working spouse may file for a chapter 13 bankruptcy and make use of the funds available with the working spouse or file jointly with the employed spouse.
Limit on secured debts and unsecured debts
Chapter 13 mandates that the individual's total secured debts and unsecured debts must be under a certain limit, which may vary based on inflation from time to time.
Secured debts are those debts where you lose the collateral, if you don't honor your debt or when the IRS files a lien on your assets.
Unsecured debts are those debts where you do not lose your assets. Examples are credit card debts, medical bills, lawyer's fees, and pending utility payments.
Finally, your income tax filing must be up to date for the last four years, with proof, to be eligible to file for a chapter 13.
Since the procedure is complicated, it is best to hire an experienced bankruptcy law firm in Maryland to guide you.
Resource Box
Filing for bankruptcy can involve complex procedures. Hire a chapter 13 bankruptcy lawyer in Maryland to steer you smoothly through the process. To contact a reputable bankruptcy law firm in Maryland,
visit http://www.rnnlawmd.com/
