Stop Foreclosure. Save Home
The most common reason that our Maryland bankruptcy lawyers file a chapter 13 case is stop a foreclosure sale and help the homeowner save their home. A chapter 13 can be easily described a repayment plan. This plan can be either three or five years long depending on several factors . For example, a Maryland homeowner with $10,000.00 in arrears can propose to pay the arrears in the plan making the payments more affordable and increase the likelihood that the homeowner saves their home. The homeowner has to complete the plan to save their home.
Pay Back Taxes
Tax payers can use a chapter 13 to repay back taxes to the IRS and or State Comptroller. Sometimes the IRS can be difficult to deal with and if an affordable payment plan cannot be reached, then a chapter 13 can force the IRS to take a lesser amount. Similar to catching up on mortgage arrears, the tax payer would propose a plan to pay the back taxes.
Protect a co-debtor
Our Maryland bankruptcy lawyers know that one benefit of a chapter 13 is what is known as a co-debtor stay. This means that once an individual files a chapter 13 case then any co-signers on the debt in question is also entitled to the automatic stay meaning that the creditor cannot go after the co-signers. For example, mom co-signs loan for daughter. Once daughter files a chatper13 case then the creditor cannot go after mom while the case is open.
Income above the median but still in need relief from debts
Occasionally, a prospective debtor will not qualify for a chapter 7 because he/she has an income that is above the median income for his/her household. If such a debtor still wants relief from burdensome debts then as a Maryland bankruptcy lawyer I can file a chapter 13 where the debtor pays back part of the debt.
This is a general overview and is not meant as a comprehensive discussion. For this reason and others, it is always a good idea to speak with a knowledgeable Maryland bankruptcy lawyer to get answers specific to your situation.
Joseph K. Githuku
Maryland Bankruptcy Lawyer
Baltimore Bankruptcy Lawyer
Disclaimer: This article is provided for informational purposes only and should not be construed in any way as legal advice. This article does not create an attorney-client relationship.