Chapter 13
Helping you repay your debts over time without losing your hard-earned assets
Chapter 13 Bankruptcy Attorney In Columbia, Maryland
Reorganize Your Debt and Work Toward a More Stable Financial Future
Falling behind financially does not always mean you need to give up your property or start over completely. If you have regular income but are struggling with mortgage payments, credit cards, medical expenses, tax obligations, or other debts, Chapter 13 bankruptcy may provide a structured way to regain control of your finances. At The Coyle Law Group, we help individuals and families in Columbia and throughout Maryland understand how Chapter 13 works and whether it may provide the relief they need.
Chapter 13 bankruptcy is often referred to as a reorganization bankruptcy. Rather than focusing primarily on eliminating qualifying debts through Chapter 7, Chapter 13 allows eligible individuals to propose a repayment plan for addressing some or all of their financial obligations over time. Plans generally last three to five years, depending on the circumstances and applicable bankruptcy requirements.
For some clients, Chapter 13 may be particularly valuable when they have fallen behind on mortgage payments and want an opportunity to protect their home while addressing arrears. It may also be considered by individuals who do not qualify for Chapter 7, have property they want to protect, or have debts that require a more structured approach.
Attorney Michael Coyle understands that financial hardship can create difficult decisions about your home, property, income, and future. We take the time to understand what brought you to this point and what you hope to accomplish. From there, we can explain your options and help you determine whether Chapter 13 provides a practical path forward.
Call The Coyle Law Group at 301-417-5727 to schedule a consultation with a lawyer today.
How a Chapter 13 Repayment Plan Works
The repayment plan is at the center of a Chapter 13 bankruptcy case. Under federal bankruptcy law, an eligible individual proposes a plan describing how certain debts will be addressed during the bankruptcy period. Payments are generally made to a Chapter 13 trustee, who then distributes funds to creditors according to the terms of the confirmed plan.
The amount a person must pay can depend on several factors, including income, necessary living expenses, the types of debt involved, property and available exemptions, and the requirements of the Bankruptcy Code. Different categories of debt may also receive different treatment. Certain priority obligations generally must be paid according to specific rules, while secured and unsecured debts may be treated differently depending on the circumstances.
Chapter 13 can be especially important for homeowners who are behind on their mortgage. In appropriate circumstances, a repayment plan may provide an opportunity to address past-due mortgage payments over time while continuing to make required ongoing payments. This can give some homeowners an alternative to immediately losing their property because of accumulated arrears.
Filing for Chapter 13 also generally triggers the automatic stay under Section 362 of the U.S. Bankruptcy Code. While the stay remains in effect, it can stop many creditor collection activities, including certain lawsuits, wage garnishments, collection efforts, and foreclosure proceedings. The automatic stay has exceptions, and creditors may seek permission from the bankruptcy court to proceed in some circumstances.
At The Coyle Law Group, we help clients understand how these protections apply to their individual situations rather than assuming the same strategy will work for everyone.
Determining Whether Chapter 13 Is Right for You
Chapter 13 requires more than simply demonstrating that you have debt. Because the process involves making payments under a court-approved plan, a filer generally needs sufficient regular income to support the proposed payments while continuing to meet necessary living expenses.
Before recommending Chapter 13, Attorney Michael Coyle reviews the client's income, expenses, secured and unsecured debts, assets, mortgage obligations, creditor activity, and other relevant financial information. We also consider the client's priorities. Protecting a home, addressing past-due payments, managing certain tax obligations, or retaining important property may all influence whether Chapter 13 makes sense.
Federal bankruptcy law also establishes eligibility requirements for Chapter 13, including limits and rules concerning the types and amounts of debt a filer may have. Bankruptcy laws and applicable thresholds can change, which makes it important to evaluate eligibility based on current law rather than relying on general information found online.
Chapter 13 is also different from Chapter 7 in an important way: the process requires an ongoing commitment. Once a repayment plan is confirmed, the filer must generally continue making required payments throughout the plan period. Failure to comply with the plan or other bankruptcy requirements can jeopardize the case and the protections bankruptcy provides.
Our role is to help you understand these responsibilities before you make a decision. We want you to enter the bankruptcy process with realistic expectations and a strategy designed around your financial circumstances.
Frequently Asked Questions
Who qualifies for Chapter 13 bankruptcy?
Chapter 13 is generally available to individuals with regular income who meet applicable eligibility requirements and have enough income to make payments under a repayment plan. Attorney Michael Coyle can review your debts, income, expenses, and financial circumstances to help determine whether Chapter 13 may be appropriate.
How long does a Chapter 13 repayment plan last?
A Chapter 13 repayment plan generally lasts between three and five years. The specific length of the plan depends on factors such as income, financial circumstances, and applicable bankruptcy requirements.
Can Chapter 13 help me save my home from foreclosure?
In certain circumstances, Chapter 13 may allow homeowners to address past-due mortgage payments through a structured repayment plan while continuing to make required ongoing mortgage payments. Filing may also trigger the automatic stay, which can temporarily stop certain foreclosure actions.
Do I have to repay all of my debt in Chapter 13?
Not necessarily. How much must be repaid depends on the type of debt, income, expenses, assets, and other factors. Certain debts may need to be paid in full, while qualifying unsecured debts may receive different treatment under the repayment plan.
Can Chapter 13 stop wage garnishment and creditor collection efforts?
Filing for Chapter 13 generally triggers the automatic stay, which can stop many collection activities, including certain wage garnishments, lawsuits, collection calls, and other creditor actions. Exceptions may apply depending on the circumstances.
Can I keep my property if I file for Chapter 13?
Chapter 13 is often considered by individuals who want to retain important property while reorganizing their debts. However, the value of your property, available exemptions, income, and repayment plan can affect how assets are treated during the case.
What happens if my financial situation changes during Chapter 13?
A job loss, change in income, unexpected expense, or other financial development can affect your ability to make plan payments. Depending on the circumstances, options may be available to address the change. It is important to speak with your attorney as soon as possible if your financial situation changes.
What happens after I complete my Chapter 13 repayment plan?
After successfully completing the repayment plan and satisfying other bankruptcy requirements, you may receive a discharge of qualifying remaining debts. Some debts are not dischargeable, so Attorney Michael Coyle can explain what obligations may remain after your case is completed.
Disclaimer: We are a debt relief agency. We are attorneys who help people file for bankruptcy relief under the bankruptcy code.
Have Questions About Bankruptcy?
Struggling with overwhelming debt or unsure whether bankruptcy is right for you? Contact The Coyle Law Group at 301-417-5727 today to speak with an attorney about your financial situation and explore your options for moving forward.