Chapter 13 reorganizes your debt into a court-approved three-to-five-year repayment plan — and keeps you in your home while you do it. It’s the tool for people with regular income who are behind on a mortgage, want to keep property that Chapter 7 would liquidate, or earn too much to qualify for Chapter 7. Atkinson Law builds and files Chapter 13 plans for Maryland clients and represents them through every stage of the confirmation and payment process.

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Reorganization, Not Liquidation — Here’s What That Means in Practice

Chapter 13 does not eliminate debt the way Chapter 7 does. Instead, you propose a repayment plan — typically three years if your income is below the Maryland median, five years if it’s above — that pays creditors from your disposable income over the plan term. The plan must meet two standards: it must pay secured creditors (mortgage, car) enough to protect their collateral, and it must pay unsecured creditors at least what they’d receive in a Chapter 7 liquidation. Any qualifying unsecured debt still outstanding at the end of the plan is discharged.

Payments are typically withdrawn directly from your wages and sent to the bankruptcy trustee, who distributes them to creditors according to the plan. Once the court confirms the plan, your payment obligations are fixed for the plan term.

Seven Specific Advantages — Especially If Keeping Your Home Is the Goal

•        Stop a home foreclosure and spread missed mortgage payments over the plan term

•        Bring current delinquent car loan or mortgage payments through the plan

•        Retain valuable non-exempt property the trustee would liquidate in Chapter 7

•        Pay off back taxes in a structured plan while stopping interest from accruing

•        Protect co-signers on consumer debts from direct collection during the plan

•        Pay non-dischargeable debts (back child support, certain tax obligations) on a structured schedule

•        Discharge some debts that Chapter 7 cannot — including certain property settlement obligations

You Need Regular Income and Debt Within the Statutory Limits

Chapter 13 requires a regular income sufficient to fund a repayment plan. It is not available if your total debt exceeds the statutory limit (currently approximately $2.75 million combined secured and unsecured — subject to adjustment). It is the appropriate chapter when: your income is above the Chapter 7 means test threshold; you are behind on a mortgage and want to save your home; you have non-exempt assets you want to keep; or you have debts you need time to pay that aren’t dischargeable in either chapter. We assess all of this at your initial consultation.

From Filing to Discharge: Five Stages Over Three to Five Years

1.  Credit Counseling — Required within 180 days before filing. Typically 60–90 minutes, available online.

2.  Petition and Plan Preparation — We analyze your income, expenses, assets, and debts to build a plan that meets the court’s confirmation standards while keeping your monthly payment manageable. This is the most consequential preparation work in Chapter 13.

3.  Filing — Automatic Stay Begins — Your petition and proposed plan are filed with the U.S. Bankruptcy Court for the District of Maryland. The automatic stay takes effect immediately, stopping foreclosure, garnishments, and creditor contact.

4.  341 Meeting and Plan Confirmation Hearing — You attend a 341 meeting of creditors (brief, under oath, typically uneventful) and a confirmation hearing where the bankruptcy judge reviews and approves your plan. Creditors may object; we respond to objections and advocate for confirmation.

5.  Plan Payments and Discharge — Payments run three to five years, generally auto-withdrawn from wages. Complete the plan, complete a financial management course, and the court discharges remaining qualifying unsecured debt. Case closed.

Plan Design Is Everything. Two Attorneys Build Yours.

The difference between a Chapter 13 plan that gets confirmed and one that doesn’t often comes down to how it’s built. Monthly payments must be sustainable for three to five years. Secured creditors must be paid enough to protect their collateral. Unsecured creditors must receive at least their Chapter 7 floor. Hitting all three while keeping payments manageable requires careful financial analysis — not a template. Two attorneys review every plan we file. We also represent clients at confirmation hearings, respond to creditor objections, and handle plan modifications when circumstances change during the plan term. Free initial consultations for all bankruptcy matters.

Behind on Your Mortgage? Facing Foreclosure? Let’s Talk.

Chapter 13 was built for exactly this situation. A free consultation with Atkinson Law gives you a clear picture of what a plan would look like for your income, your debts, and your goals — and whether it’s the right path.

Protect. Preserve. Rebuild.

Serving clients in White Marsh, Bel Air, Towson, Parkville, Baltimore City, and throughout Baltimore County, Harford County, and Maryland.

[ Schedule a Free Consultation ]  |  [ 410-882-9595 ]  |  [ 443-384-0013 (Bel Air) ]