Annapolis, MD asked in Bankruptcy for Maryland

Q: I noticed that it costs less to file a Chapter 13 bankruptcy in Maryland than a Chapter 7. I don't have a lot of money.

What are the requirements for filing Chapter 13?

Related Topics:
3 Lawyer Answers
Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: You need to have a job or other income to be able to repay at least a percentage of your debt to your creditors. Chapter 13 is generally used when you have property you might otherwise lose in a Chapter 7.

David Gormley agrees with this answer

David Gormley
David Gormley
Answered
  • Bankruptcy Lawyer
  • Waldorf, MD
  • Licensed in Maryland

A: Chapter 13 is a payment plan where you pay back some or all of your debt over a 3 to 5 year period. While the filing fee for a 13 is less than the filing fee for a Chapter 7 that does not make it the cheaper option. The attorney's fees are usually more than for a Chapter 7. Along with that you will have to pay back at least some of your debt.

Mark Oakley
Mark Oakley
Answered
  • Rockville, MD
  • Licensed in Maryland

A: When you file your Chapter 7 petition, you can simultaneously file a request to waive the filing fee based on being poor and not having enough income. Your bankruptcy petition will be accepted while the court decides whether to grant your request. If denied, you will be given a time period to pay the fees or your petition will be dismissed. If granted, you're good to go. There are a lot of resources at the courthouse for self-represented litigants, and there is a free consultation with bankruptcy lawyers that you can sign up for to assist you in preparing your forms and filing. You may even qualify for a free or reduced fee lawyer. Most debtors prefer to file Chapter 7, as it wipes out all your debt. The only people who file Chapter 13 are those who have property and assets exceeding $10,000 (usually a lot more than that) which they want to keep, which means they have to make monthly payments over 36-60 months in order to keep the assets. Generally, however, you have $10,000 or more of "exemptions" that protect that dollar amount of your property from your creditors --meaning, you can discharge all you owe and keep your property valued up to that amount. Bankruptcy can be quite complex and confusing to a non-lawyer, and the court clerks and judges cannot help you much, so if you can hire a lawyer or qualify for a free or reduced fee lawyer, try to do so.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.