Going through prolonged periods of financial strain can be stressful under any circumstance. Unfortunately, it may take little more than a single medical emergency or sudden change of employment to leave a person facing high amounts of debt. For individuals in Maryland who are able to pay certain amounts of debt but are struggling under the overall weight of financial obligations, a wage-earner plan could help them pursue a healthier financial future.
One major concern for many who consider bankruptcy as a viable option may pertain to the liquidation of assets. However, unlike Chapter 7 bankruptcy, Chapter 13 may allow a person to maintain possession of all his or her assets while repaying certain amounts of debt over a given period of time. To be eligible for a wage-earner plan, a person may need to show that his or her income is sufficient to make the required payments according to schedule.
A person must also set forth a plan to pay certain amounts of debt before the process can begin. The length of the plan will be determined by one’s income. Those with a higher average income than the state median must propose a five year plan, while those who make less than the median must propose one that is three years long. Once the process is completed, any remaining debts that are eligible may be discharged by the court.
While a person who is experiencing substantial financial concerns may wish to pursue relief through a wage-earner plan, knowing the ins and outs of eligibility and what to expect from bankruptcy can be challenging. Prior to deciding on a path, a person in Maryland could find it beneficial to speak with an attorney for guidance in better understanding the process. An attorney can assist a client in choosing the correct path for relief and subsequently assist him or her in navigating the process.