Chapter 13 Bankruptcy

Consider Chapter 13 Bankruptcy to Resolve Debt Problems

If you and your family can no longer tolerate debt collection pressure related to mortgage problems, tax arrears, credit card obligations or the enforcement of a judgment against you, it's probably time to meet with a knowledgeable bankruptcy lawyer. Contact The Fried Law Firm in Bethesda to learn about your options for debt relief.

Call 866.439.0886 to learn about your rights in Chapter 13 bankruptcy

Unlike Chapter 7, which is now only available to debtors who do not exceed state median income levels, Chapter 13 bankruptcy is available to practically anyone with a regular source of income. The essential feature of Chapter 13 is repayment of a portion of unsecured debt over a period of three to five years.

Chapter 13 frequently represents the best option for people in such situations as the following:

• Debtor's net household income is too high for Chapter 7 eligibility
• Debtor qualifies for Chapter 7, but has too many nonexempt assets or too much equity in the home
• Much of the debt is nondischargeable, such as student loans or recent taxes
• Debtor needs to keep possession of the homestead, motor vehicles or other assets securing debts in default
• Debtor is personally liable as a guarantor of defaulted small business debt

The flexibility of Chapter 13 can reward the client whose attorney knows how to take advantage of some of the Bankruptcy Code's lesser-known features, such as the right to lower older car loan payments or defer payment of tax penalties. At The Fried Law Firm, our decades of concentration on the resolution of serious financial problems through bankruptcy and other approaches can help you make the most of your options under a Chapter 13 debt repayment plan.

Most of the debts you'll be repaying in a Chapter 13 case will be on claims that you'll need to pay anyway — nondischargeable claims and secured indebtedness. You'll need to show that unsecured creditors such as credit card issuers will do better than they would in a Chapter 7 case, but a 5-10 percent payout on general unsecured claims will generally meet that requirement.

Bankruptcy's automatic stay protects Chapter 13 debtors just as it does under any other chapter. Just about all creditor collection activity must come to complete halt once the Chapter 13 petition is filed. Freedom from immediate creditor harassment supports your ability to develop and perform on your Chapter 13 plan.

We advise Chapter 13 clients throughout Maryland and metro Washington

To learn more about Chapter 13 debt repayment as a bankruptcy option for you, contact an experienced attorney at The Fried Law Firm in Bethesda.

The Fried Law Firm, P.A., is a federally-designated Debt Relief Agency, which proudly helps people filing for bankruptcy.