Treat Chapter 13 Bankruptcy as an Opportunity to Stage a Comeback
If your business in Maryland is going through a bad
phase that has made it unsustainable, it is time to rethink your strategy and
make bold decisions. Rather than wait for your debts to pile up to an
unacceptable amount, make a strategic retreat. Speak to your lawyer and ask for
a solution. If your lawyer is experienced and knowledgeable, s/he will refer to
business bankruptcy Chapter 13
Maryland and recommend that you file for bankruptcy under this chapter.
That will not only offer you a way to wade off the pressure mounted by
creditors but also provide a decent chance to pay off your debts conveniently
and make a comeback.
Chapter 13 bankruptcy has qualification criteria
Now that you have read the storm signals well in
time, and spoken to your lawyer about filing for bankruptcy, look up where you
stand. Filing for Chapter 13
bankruptcy in Maryland
will require you to have unsecured debt of at least $394,725 and secured debt
of at least $1,184,200. If your business is an LLC or corporation, you cannot
file for Chapter 13 bankruptcy.
The other major requirement is that you should have
a regular and proven source of income that will leave you with enough to pay
off the monthly installments of your debt. That is because Chapter 13
bankruptcy offers a debt repayment plan which you will be able to honor only if
you have a regular source of income.
The process of filing Chapter 13 bankruptcy
It is a complex legal process which will be better
handled by a qualified and experienced lawyer. Unless you have a lot of time to
spare and you are fond of exploring uncharted territories, do not try to file
for business
bankruptcy Chapter 13 Maryland all by yourself.
When your lawyer submits your file at the court,
s/he will provide a list of the creditors and the amount of money you owe to
each one of them. You must also share details of your income and property with
your lawyer for him/her to include these details while filing Chapter 13
bankruptcy for you.
Your lawyer will guide you all the way
Once the process of filing for Chapter 13 bankruptcy in Maryland is over, your lawyer will
discuss ways of proposing a repayment plan to the court as that is a legal
requirement under Chapter 13 bankruptcy. Don't hold back any information from
your lawyer as it will only complicate your case. An experienced lawyer will
ensure that the court accepts your repayment plan even if creditors object to
it.
On your part just ensure that you don't miss or
make late payments because the trustee could move court to get your case
dismissed. In case you anticipate difficulties in meeting your debt repayment
as scheduled by the court, inform your lawyer and s/he will take up the matter
with the trustee for possible modifications in your plan.
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