Chapter 13 Bankruptcy – The Best Option If You Need To Catch Up With A Mortgage
The Covid-19 pandemic has been really tough for individuals and businesses.
With debt becoming unmanageable, entities are seeking one or two types of bankruptcies for relief depending on their financial and other circumstances.
People with little assets and minimal income are choosing Chapter 7 bankruptcy that fully wipes out their qualifying debt in 16 to 24 weeks without the need to repay lenders.
On the other hand, people are who are better off and who want to safeguard their valuable property go in to file for Chapter 13 bankruptcy. To get debt relief, these filers pay from their flexible income to their lenders over a period of 3-5 years.
Chapter 13 is also called a wage earners plan. If you have a regular income, it enables you to craft a plan to repay all or part of your debts.
“Those people who want to save their homes from foreclosure come to me to seek a solution to their woes”, says a chapter 13 bankruptcy lawyer Maryland. “I tell them to file for Chapter 13 so that they can halt foreclosure proceedings and cure irregular mortgage payments over a period of time”.
But there is one key point to keep in mind.
Business entities are not eligible for Chapter 13, but business owners are in their individual capacity.
“It is important for a businessperson to understand their options and evaluate if filing for Chapter 13 is right for them”, says a bankruptcy lawyer 13 Northern Virginia.
“Chapter 13 is a non-liquidation bankruptcy. You can keep your house, car, and other property even as the bankruptcy process gets underway and finally eliminate your debts”.
Yet. It may make sense to consult a competent bankruptcy attorney.
The attorney will take pains to carefully analyze your situation and recommend if Chapter 13 is right for you, because in some cases the corona virus pandemic may have made it possible for you to be eligible for Chapter 7 bankruptcy that does not involve a payment plan.
To evaluate whether you are eligible for Chapter 7, your bankruptcy lawyer may perform a Means Test as well as a household budget analysis both of which may indicate whether there is even a slightest possibility of Chapter 7 eligibility.
What about bankruptcy hearing during this pandemic?
It is true this pandemic has affected all walks of life. It has brought about changes in how hearings will take place, which may now happen via video or telephonic mode.
Searching for right chapter 13 bankruptcy lawyer Maryland
Look for attorneys that focus their practices on Chapter 13. These lawyers are familiar with bankruptcy laws and court proceedings and will assist you in getting the best possible outcome for your case.
If the lawyer offers free in-person appointment in his/her office, ensure that social distancing and sanitizing protocols are followed. Otherwise, go ahead with the scheduled telephonic meetings.