In Maryland, bankruptcy presents an invaluable option for settling debt quickly or acquiring a new way to pay the debts off. With chapter 13, the consumer gets a new payment plan that lasts up to five years. They pay smaller payments for each debt and pay one payment only each month. A Chapter 13 Bankruptcy Lawyer in Bowie MD can offer detailed answers to frequently asked questions.
Why are Details of the Claimant’s Income Necessary?
The claimant must provide detailed information about their income to determine eligibility for this specific chapter of bankruptcy. To qualify for chapter 13, the claimant’s income must be above the county income median for their household size. The claimant must provide income information for no less than the last six months, and the attorney will need information about their employer to verify the details.
Can the Claimant Add All Debts to the Claim?
The creditors have the right to refuse to allow the claimant to add their account to the bankruptcy claim. However, the judge can override this decision in some cases. The creditors cannot file any legal action against the consumer if the account is included in the bankruptcy and the plan has been approved by the court. The claimant can list all their debts for consideration when they start their claim.
Why is Credit Counseling Required?
As the Chapter 13 Bankruptcy Lawyer in Bowie MD will tell the consumer, a credit counseling program is required before the bankruptcy case can continue. The programs prepare the claimant for bankruptcy by showing them how to manage their finances during the repayment period and after the case has concluded.
Are the Payments Monitored?
Yes, the court monitors the bankruptcy case, and they will ensure the claimant submits their monthly payments on time. In some cases, the court will require wage garnishment to ensure the payments are made.
In Maryland, bankruptcy cases provide assistance for consumers facing overwhelming volumes of debt. With chapter 13, they can start a new repayment plan and settle their debts easily. Consumers who need to know more about these claims are encouraged to contact a Chapter 13 Bankruptcy Lawyer in Bowie MD.