Difficulty paying bills can result for many reasons. Overspending, divorce, illness, injury, disease, and many other changes in someone’s life can create a financial strain on their life. When mounting bills have made it difficult or an individual’s home is in foreclosure and the automobile is being repossessed, it’s important to contact a chapter 13 bankruptcy attorney in Rockville as quickly as possible. This type of attorney can prevent foreclosure and repossession, stop wage garnishments, and establish a debt payment plan that an individual can afford.
Chapter 13 bankruptcy does not mean an individual has to sell all of their assets to pay their debts. This type of bankruptcy restructures their payments to the credits and keeps their house, car, and rental property that would be sold under a chapter 7 bankruptcy. Chapter 13 bankruptcy is a great alternative for individuals who have a source of income. Liens on a home could be eliminated and car payments could be reduced if the vehicle was purchased more than 2 1/2 years ago. A Maryland resident has the opportunity to catch up on many of their past due payments and stops the IRS from placing liens against their property or garnishing their wages. A chapter 13 bankruptcy attorney in Rockville can explain how the bankruptcy law can work for an individual or business.
A chapter 13 bankruptcy attorney in Rockville will continue to work to get the payments as low as possible. They present all of an individual’s circumstances as favorably as possible. If an individual is behind on their mortgage or car payments before they file for bankruptcy, they must stay current on any payments that become due after their case is filed in order to retain the assets. Payment plans are established over 36 to 60-month period. Certain debts are not dischargeable, such as student loans, child support, or alimony. In some cases, income taxes, fines, penalties, and other debts can be reduced or eliminated under chapter 13 that aren’t eligible for inclusion under chapter 7.
