Maryland consumers achieve a debt-free lifestyle after finding a beneficial solution to an overwhelming mountain of debt. Among these solutions is bankruptcy. If the consumer is facing repossession or foreclosure, the most beneficial form of bankruptcy in these circumstances is chapter 13. If you wish to file a claim, you should contact a Prince Georges County MD Bankruptcy Lawyer today.
Income Eligibility
The first detail to cover when establishing eligibility is the claimant’s income level. To establish eligibility for chapter 13, the claimant must possess proof that indicates that their income is above $71,696, which is the county median. Any income levels that are below this value deem the claimant eligible for chapter 7 only. To establish eligibility, the claimant should bring documentation for all sources of income for the last six months.
Evaluate Exemptions
The court provides you with an exempted amount in relation to select debts. For instance, the standard exemption for a home is based on the equity that the property owner has accumulated over the course of their mortgage loan. The same rule applies to automobiles that are financed. In chapter 13, this value is deducted. However, in chapter 7, this value is what the claimant receives when the property is sold through liquidation.
Discharged Debts
While a judge has the final say on what is or isn’t discharged, a Prince Georges County MD Bankruptcy Lawyer can provide you with a list of probabilities based on your debts. The most common debts that are discharged are unsecured credit card debt. Primarily, this ruling applies to accounts in which the creditor filed an insurance claim to cover the loss; this prevents double payment of debt.
Consumers facing potential financial ruin should take measures to prevent a major catastrophe, which could hinder them from necessary purchases in the future. By taking steps to achieve a debt-free lifestyle, these consumers can stop foreclosure and repossession efforts. With a chapter 13 bankruptcy, they acquire an automatic stay to cease these efforts for up to five years.
