If you are having trouble paying your debts, filing bankruptcy in Maryland may be your best option. While you have options for the type of bankruptcy you can file, Chapter 13 gives you the option of working out a plan to keep the assets you have securing debts, such as your home or vehicle, according to NerdWallet. Since this type of bankruptcy does require making payments on a regular basis to pay debts, you do need to have a regular income.

In a Chapter 13 bankruptcy, you work with the court to develop a repayment plan for your debts. You will work to bring your secured debts current so you do not lose the assets securing those debts. You will also try to pay down unsecured debts. How much you pay is based on your income.

Unlike Chapter 7, there is not a means test for Chapter 13. The only income requirement is that you are earning a regular income so that you can make your regular payments as part of your bankruptcy plan. While you may qualify for Chapter 7 if you are low income, Chapter 13 may be the better option if you have secured debts. For example, if you have a vehicle that you purchased through a loan and you want to keep that vehicle, Chapter 13 will help you do that. If you file Chapter 7, you will probably lose the vehicle.

With that in mind, Chapter 13 may actually be the better choice for low income filers. It can lessen the loss that may come with filing Chapter 7, which can make it easier for you to get back on your feet after filing. This information is for education and is not legal advice.