BLOG

In a Chapter 13 bankruptcy case, the trustee plays a key role in overseeing the process and ensuring all parties follow the rules. The trustee acts as an intermediary between the debtor, creditors, and the court. Reviewing the repayment plan The trustee reviews the debtor’s proposed repayment plan to ensure it meets legal requirements. In Chapter 13 cases, the plan must demonstrate how the debtor will repay creditors over three to five years. The trustee evaluates whether the plan is feasible and provides recommendations to

Tax debt can be one of the most challenging types of debt to manage. For those struggling financially, filing for Chapter 13 bankruptcy may provide some relief.  Understanding whether Chapter 13 can discharge tax debts is necessary for making informed decisions under Maryland law. Types of tax debts eligible for discharge Not all tax debts are eligible for discharge under Chapter 13 bankruptcy. To qualify, the tax debt must be income tax owed to the federal or state government. You typically cannot discharge property taxes,

Chapter 13 bankruptcy can provide a way for individuals to reorganize their debts and create a plan to repay them over three to five years. While this can be a lifeline for those struggling with debt, it can also lead to higher interest rates on future loans.  Several reasons contribute to this increase in interest rates. Understanding these key factors can help you navigate your financial recovery. Lower credit scores Chapter 13 bankruptcy affects credit scores significantly. When someone files for bankruptcy, it gets recorded

Chapter 13 bankruptcy offers a way for people to restructure their debts and create a manageable repayment plan. In Maryland, as in other states, it is possible to finish a Chapter 13 bankruptcy repayment plan early under certain conditions. Understanding these conditions can help you achieve financial freedom sooner than you expected. Requirements for early completion To finish a Chapter 13 repayment plan early, pay all priority debts in full. Priority debts include obligations such as taxes, child support and alimony. You must also pay

When facing financial difficulties, it is important to explore all available options to regain control of your finances. Chapter 13 bankruptcy is one alternative that individuals with a steady job may consider. Understanding the benefits of Chapter 13 can help you decide if it is the right choice in your situation. Maintaining a steady income Chapter 13 bankruptcy is often suitable for individuals with predictable income. This type of bankruptcy allows you to create a repayment plan to gradually pay off your debts over a

According to USA Today, American household owe a combined total of $17 trillion in debt. Facing financial challenges can be overwhelming, and for some individuals, filing for Chapter 13 bankruptcy may provide a viable solution. This legal process, governed by the United States Bankruptcy Code, allows individuals with a regular income to develop a manageable plan to repay their debts. There are several reasons to consider filing for Chapter 13 bankruptcy. 1. Repayment plan tailored to your income Chapter 13 bankruptcy offers a structured repayment

Those overwhelmed by debt often consider filing either Chapter 7 or Chapter 13 bankruptcy. Chapter 13 bankruptcy, also known as “reorganization bankruptcy,” is a legal process designed to help individuals with a steady income regain control of their finances while repaying their debts over a specified period, usually three to five years. Chapter 7 bankruptcy involves liquidating assets to pay off debts. However, Chapter 13 focuses on creating a manageable repayment plan. People considering filing this type of bankruptcy should know a few things about

Overwhelming financial difficulties can be incredibly challenging to overcome. In certain cases, they can be near impossible to surpass without outside aid. Bankruptcy can provide relief from unmanageable debt. A common misconception that keeps many from using it is that it irreparably harms your credit score. Bankruptcy basics Bankruptcy is a legal process that allows individuals or businesses to eliminate or repay their debts under the protection of the court. There are two primary types of bankruptcy for individuals, Chapter 7 and Chapter 13. Chapter

The prospect of losing a home due to financial difficulties is a distressing reality for many homeowners. In January 2023, nearly 32,000 U.S. properties had foreclosure filings, according to real estate data company ATTOM. Individuals facing foreclosure often wonder whether bankruptcy can put a pause on the foreclosure process. Chapter 7 Bankruptcy Filing for bankruptcy can help people alleviate their financial burdens. Chapter 7 bankruptcy, also known as “liquidation bankruptcy,” involves the sale of debtors’ non-exempt assets to settle their outstanding debts. Once the courts

Overwhelming debt can happen to anyone. For many people, bankruptcy is the only option. If bankruptcy is a potential option for you, consider the distinctions between Chapter 7 and Chapter 13 bankruptcies. What are Chapter 7 and 13 bankruptcies? Chapter 7 is a liquidation bankruptcy that halts most creditors from collecting. After three to four months, the bankruptcy will discharge and erase qualifying debt, such as personal loans and medical expenses. Both individuals and businesses can file a Chapter 7. Chapter 13 bankruptcy will reorganize