Maryland consumers who are struggling to maintain payments on their debts might have considered personal bankruptcy, but they may have put off filing because they are not entirely informed about the different bankruptcy chapters and the requirements for each. Choosing between a Chapter 7 liquidation bankruptcy and a Chapter 13 discharge bankruptcy that involves a repayment plan can be difficult without the necessary information. Procrastinating can only worsen the situation, and the appropriate action may be to consult with an experienced bankruptcy attorney.

A consumer who has a regular income but is unable to meet the required payments may qualify for a Chapter 13 bankruptcy, which offers more protection than a Chapter 7 bankruptcy. It provides a debtor the opportunity to draft an affordable partial repayment plan to pay the debts over a period of three to five years. If authorized by the bankruptcy court, the repayment plan will be supervised by the court.

While assets may be liquidated in a Chapter 7 filing, consumers who file for Chapter 13 bankruptcy may be protected from foreclosure and other creditor actions. Moreover, once a Chapter 13 bankruptcy has been filed, creditors must cease adding interest or penalties to unpaid accounts, thereby potentially saving the debtor thousands of dollars. After making the required payments for the predetermined period, the remaining balances may be discharged.

The Law Offices of Richard B. Rosenblatt, PC, serves clients throughout Maryland. They will assess the situation of every client and advise to the best course of action. In addition to Chapter 13 discharge, they will explain the other bankruptcy options and their respective requirements along with the pros and cons of each one. Repayment plans can be tailored to the unique needs of each client with the goal of developing debt reorganization that may offer a stable financial future.