Bankruptcy: An Overview of Chapter 13 (Part B)

Am I eligible? 

Any U.S. citizen is eligible for chapter 13 bankruptcy protection. The only prerequisite is that you have unsecured debts less than $360,475 and secured debts less than $1,081,400. A corporation or partnership may not file for chapter 13 bankruptcy protection. 

So how do I begin to file for bankruptcy protection? 

If you plan to file for chapter 13 bankruptcy in Maryland, the first thing you’ll need to do is hire a Maryland bankruptcy attorney. A Maryland bankruptcy attorney will be able to guide you through the complicated bankruptcy process. The next step would be to file a petition with your nearest bankruptcy court. Unless the court orders otherwise, you must also file: 

• Schedules of assets and liabilities
• A schedule of current asset expenditures
• A schedule of executory contracts and unexpired leases
• A statement of financial affairs
• A certificate of credit counseling
• A copy of any debt repayment plan developed through credit counseling
• Evidence of payment from employers, if any, received 60 days before filing
• A statement of monthly net income or expenses after filing
• A record of any interest you have in federal or state qualified education of tuition accounts 

You must also provide the chapter 13 bankruptcy case trustee with a copy of the tax return or transcripts for the most recent tax year, as well as tax returns filed during the case. For all of this the court will charge a $235 case filing fee and a $39 miscellaneous administrative fee. Generally these fees must be paid to the court upon chapter 13 bankruptcy filing. 

All of this is just the beginning to your chapter 13 bankruptcy proceedings. You will then have to attend a confirmation hearing, and have your debts discharged by your creditor and financial institutions. You can do all of this under the guidance of a Maryland bankruptcy attorney. 

If you are facing a personal financial crisis such as the need to declare bankruptcy in Maryland, don’t exacerbate the problem by seeking the services of a so-called bankruptcy “sweatshop” or bankruptcy mill. The Maryland bankruptcy attorney team at Vijayan Law Group isn’t interested in churning out as many cases in a month as possible. Instead, we focus on providing personalized bankruptcy help that is unique to your situation and needs. Contact us today for a free 30 minute consultation – 410-449-0893.

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