The Maryland Bankruptcy Law
In times of tremendous financial crisis people might, at times, think of filing a petition for bankruptcy.
Chapter 7 and Chapter 13 of the Maryland Bankruptcy Law serve best to individual plaintiffs seeking relief from their debts through discharge. Maryland Bankruptcy Law enables a plaintiff start his/her financial career, afresh with no pending liability, and no creditors chasing after him or her for money. Under Chapter 7, the bankruptcy trustee usually has the power to sell the plaintiff's nonexempt property (i.e. the assets owned by the plaintiff) to pay the creditors. However, the exempt property still remains with the plaintiff, and at the same time, out of the creditors' reach. If the plaintiff can afford to repay a certain portion of his/her debts, he/she should take resort to Chapter 13 of the Maryland Bankruptcy Law. Chapter 13 of the Bankruptcy Maryland Law offers a Repayment Plan.
Under this plan, the plaintiff is supposed to make partial payment of his debts. The remaining debts are discharged under this Chapter, after the successful completion of the Repayment Plan. Anyone thinking of filing a petition for bankruptcy might be confused regarding whether to file the petition under Chapter 7, Chapter 11, or Chapter 13. Chapter 7 successfully discharges the burdensome debts allowing the debtors keep the assets if they are below the exemptible amount. Chapter 11 of the Bankruptcy Law is mostly used to reorganize a business and not for individual purpose, whereas Chapter 13 is usually used by individuals having a regular source of income beyond the average income amount of the state. If such an individual may still be unable to pay his/her debts, he/she can take resort to the Chapter 13 of the Bankruptcy Law of Maryland. Chapter 13 allows the plaintiff an extended time limit of three to five years, allowing the plaintiff a chance to pay off most of his/her debts. After five years, the still remaining debts get discharged under the conditions of the Repayment Plan.
One may wonder which debts are dischargeable and which are not. Most credit card bills, medical bills, personal loans and deficiencies in vehicle repossessions get discharged whereas debts that are not dischargeable include student loans, most taxes, fines, penalties, home support payables, debts owed to stock bonus, profit sharing etc. If anyone is worried about how long it takes to get the debts discharged, he/she should keep in mind that, under Chapter 7, it takes roughly three months to get the dischargeable debts fully discharged, whereas, under Chapter 13, the remaining debts get discharged only after the completion of the extended time offered by the Repayment Plan.
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Contact Name : Camron White
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Categories: Finance
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Contact Name : Camron White
Company Name : United Financial Resources
Contact Phone : 240-654-5000
Fax : 1-888-498-6161
Address : 10411 Motor City Dr., Bethesda, MD 20817, USA
Contact Name : Camron White
Company Name : United Financial Resources
Contact Phone : 240-654-5000
Fax : 1-888-498-6161
Address : 10411 Motor City Dr., Bethesda, MD 20817, USA
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