Personal debt can come in various forms, sudden and gradual alike. An unexpected trip to the hospital can be financially devastating. On the other hand, perhaps a person used a credit card on too many occasions, eventually leading him or her into dire financial straits. Regardless of how it happens, those in Maryland who are considering bankruptcy as a viable outlet for relief might want to consider the benefits of a wage-earner plan.
Overwhelming debt can put a significant strain on a person’s everyday life. In some cases, an individual may possess the ability to make payments on a portion of his or her debt, but the total amount could be too much to handle. A person may also wish to retain possession of certain assets throughout this period, subsequently prompting him or her to explore Chapter 13 bankruptcy.
This type of bankruptcy, also known as a wage-earner plan, allows a person to propose a plan for repaying certain amounts of debt over a given period. Under this arrangement, which must be approved by the court, an individual can avoid having to liquidate certain assets and will still receive protection from creditors as long as the arranged payments are made. Chapter 13 bankruptcy may also assist with certain debts that aren’t covered in other bankruptcy options.
Individuals who are considering bankruptcy will likely find it advisable to seek guidance from someone with experience in this area of the law. A bankruptcy attorney in Maryland can go over a client’s financial situation, address his or her concerns and wishes and provide advice on all available options. If a wage-earner plan is appropriate, an attorney can also assist the client in navigating the process.
Source: mensfitness.com, “5 reasons filing for bankruptcy could save you from life-crushing debt”, Damon Trent, Accessed on May 19, 2017