How Does Chapter 13 Bankruptcy Work in Maryland?
Chapter 13 bankruptcy (debt reorganization) allows you to consolidate your debts into a manageable 3-to-5-year repayment plan supervised by the court. It is the primary tool used to stop foreclosure on your home, catch up on mortgage arrears, prevent vehicle repossession, and restructure tax debt.
If you have a regular source of income but have fallen behind on your mortgage or car payments, the Chapter 13 process offers a legal pathway to protect your assets. The moment we file your Chapter 13 petition, the court issues an estancia automática, immediately halting any foreclosure sale or vehicle repossession, allowing you to catch up on missed payments over time.
Designing Your Repayment Plan
At the Law Office of Albert Coto, LLC, we work with you to draft a customized repayment plan presented to the federal trustee. Your monthly payment is calculated based on your disposable income.
- Secured Debt Arrears: Missed mortgage payments and auto loans are caught up during the plan.
- Unsecured Debts: You only pay what you can afford toward credit cards and medical bills. Once you complete your 3-to-5-year plan, any remaining unpaid balances on unsecured debts are completely wiped out (discharged).
