In Maryland, consumers assess possibilities when approaching debt relief strategies. The strategies present them with the opportunity to settle debts in a more beneficial manner. Among the strategies is chapter 13 bankruptcy. A Chapter 13 Bankruptcy Lawyer in New Market helps all consumers manage the process for starting a claim.
Qualifying for the Chapter
The determining factor when qualifying for chapter 13 is that the consumer must have an income that is greater than the county’s average. The standard average for Frederick County is $95,036 currently. However, adjustments can be made based on the size of the household. If the consumer meets these qualifications, they are approved for chapter 13 bankruptcy.
Reviewing Payment Plan Options
The chapter of bankruptcy requires the consumer to start a repayment plan. The plan lasts up to five years. The consumer submits monthly payments that are divided among the creditors. The court acquires the payment through a direct payment or by garnishing the consumer’s wages. The bankruptcy court can discharge the claim if the consumer fails to comply with any stipulations presented in the plan.
Why Consumers Need Credit Counseling
The consumer needs to attend credit counseling programs before bankruptcy to determine how they mismanaged their debts. The programs show them better strategies for eliminating debt and avoiding late fees and additional finance charges. The program also helps them to adjust after bankruptcy and rebuild their credit more effectively.
Disposable Income Requirements
All disposable income is used to pay off any debts that were not included in the bankruptcy claim. Disposable income is identified by any value left over after household requirements, and the bankruptcy payment is deducted. The consumer isn’t required to use the money to pay off debts that were discharged during the bankruptcy claim.
In Maryland, consumers achieve debt relief through a bankruptcy claim. The claims provide consumers with access to lower balances and a real possibility of becoming debt free. They provide protection through an automatic stay as well. Consumers who want to speak with a Chapter 13 Bankruptcy Lawyer in New Market contact an attorney directly or Visit Russell & Heffner LLC for more details.