Ellicott City, MD Chapter 13 Bankruptcy Lawyer

Highly Experienced Attorneys for Reorganization Bankruptcy and Repayment Plans in Ellicott City, Maryland

Chapter 7 bankruptcy may be fast, but the possible liquidation of assets that may be required is not acceptable to everyone. If you have significant assets that would not be exempt from liquidation, you may prefer to file for bankruptcy under Chapter 13.

With a Chapter 13 bankruptcy, there is no liquidation. However, you will be expected to make a substantial monthly payment toward your debts for the next three to five years. This monthly payment would be roughly calculated to equal your disposable income. While keeping up with this payment schedule can have a significant impact on your lifestyle, it is only temporary. Once your repayment term is over, the remainder of your debt will be erased.

Many people are willing to accept this type of repayment plan in order to receive debt relief without going through liquidation. You should discuss this important decision with a well-qualified Maryland bankruptcy lawyer. There are benefits and drawbacks to both types of bankruptcy, so you will need to determine what your personal priorities are.

The Law Offices of Marc A. Ominsky, LLC has more than 50 years of combined legal experience. We have guided numerous people through the bankruptcy process, and we can help you make the best possible decision about which type of bankruptcy to use. Our dedicated bankruptcy lawyers understand how quickly debt can spiral out of control. We are hands-on and ready to help you in real time. Even highly responsible individuals can miss a credit card payment or have a medical crisis that leads to bills beyond their ability to pay. We will be here to advocate for you and carefully manage every aspect of your case throughout the bankruptcy process.

Understanding the Chapter 13 Repayment Plan

Chapter 13 bankruptcy is sometimes called reorganization bankruptcy. Instead of making multiple monthly payments to different creditors, you will make a single monthly payment to the bankruptcy trustee. The payments you make will be redistributed to your creditors.

What discourages many people from using Chapter 13 is that the monthly payment is meant to consume most or all of your disposable income. Your disposable income is the money you have left over after meeting your family's reasonable needs. This means that you will have little to spend on luxuries like travel, dining out, or buying high-end goods. Your payments will be calculated based on your income and your expected reasonable expenses.

While this might sound uncomfortable, it is important to consider how much you currently owe each month. Your attorney can help you approximate what your monthly repayment in a Chapter 13 plan would be so that you can compare it to your existing monthly debt repayment obligations.

The Benefits of Chapter 13

Some of the benefits of Chapter 13 bankruptcy include:

• Avoiding Liquidation: If protecting your assets is a high priority for you, Chapter 13 may be your best option. Many assets may be exempt from liquidation, so it is important to discuss your particular goals with your lawyer.
• Preventing Foreclosure: Filing a petition for Chapter 13 bankruptcy is one of the most effective ways to stop a foreclosure. Reorganizing your debts can give you additional time to catch up on overdue mortgage payments.
• Reducing Monthly Payments: Some people are able to reduce the amount they spend on debt repayment each month by consolidating their payments through Chapter 13 bankruptcy. Your attorney can help you compare your current monthly payments with your expected Chapter 13 monthly payment.
• Reduced Wait Times Between Bankruptcies: Should you need to file bankruptcy again in the future, there is a shorter wait time after a Chapter 13 bankruptcy as opposed to a Chapter 7 bankruptcy.
• Debt Organization: It can be challenging to keep track of numerous monthly payments to different creditors. Reorganizing your debts so that you only need to make one payment each month can make managing your finances much simpler.

Contact Our Ellicott City Chapter 13 Bankruptcy Attorneys

The Law Offices of Marc A. Ominsky, LLC will strive to make filing for Chapter 13 bankruptcy as easy as possible for you. Our highly experienced Ellicott City, MD bankruptcy lawyers are responsive and accessible when you need us. We carefully manage each bankruptcy case and work hard to meet every client's unique needs. Contact us at 443-539-8712 for a complimentary consultation.