Reviewing Details About Chapter 13 Bankruptcy Law in New Market

In Maryland, chapter 13 bankruptcy provides consumers with a method of settling their debts. The claims involve setting up a new plan for paying their debts. Instead of paying multiple payments, the consumers submit one payment only. A local attorney provides answers for consumers about chapter 13 bankruptcy law in New Market.

The Restructured Payment Plan

Chapter 13 provides the consumer with a restructured payment plan. The plan requires the consumer to submit a monthly payment to the court which is split among the consumer’s creditors and applied to each account. The consumer pays off the debts according to the values determined by the court.

Disposable Income Requirements

All disposable income is used to settle debts that aren’t discharged or weren’t included in the claim. The disposable income is determined according to monthly expenses of the consumer. The expenses are deducted from the consumer’s wages along with their monthly payment. Any balance left over is used to settle the additional debts.

Preventing Foreclosure Proceedings

An automatic stay prevents the consumer’s creditors from starting the foreclosure proceedings. The stay stops creditors from seizing any assets while the bankruptcy claim is active. The protection stops any seizures and all legal actions throughout the bankruptcy. It gives the consumers peace of mind during their claim.

What Is Discharged?

The bankruptcy court provides a discharge for certain debts through a claim. The most common debts that are discharged are unsecured credit card accounts. As long as the consumer completes the requirements of the claim, the debts are discharged, which prevents the creditors from making further attempts to collect the balance of the account. However, if the consumer doesn’t complete their requirements, the debts become their responsibility immediately.

In Maryland, chapter 13 bankruptcy is a new structured payment plan for consumers. The plans provide an opportunity to pay off a large volume of debt and become debt-free. The consumers must use their disposable income to pay any debts that weren’t included in the claims. They also receive a discharge for some of their debts. Consumers who want to learn more about chapter 13 bankruptcy law in New Market can visit us right now.

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