District Heights, Maryland Chapter 13 Bankruptcy Lawyer

Skilled Chapter 13 Bankruptcy Attorney for Clients in District Heights

Missed payments on debts can add up quickly. If you are straining yourself just to make ends meet, then catching up on those missed payments may be lower on your list of priorities. However, when your creditors come to collect on your debts by seizing your property, you may be left in an even more dire financial situation.

By filing for Chapter 13 bankruptcy, you can protect yourself from aggressive collection efforts and take steps toward financial stability. A District Heights bankruptcy attorney can guide you through this process and represent you in court. At The Law Office of Donald L. Bell, we are here to assist you in your petition for Chapter 13 bankruptcy, working toward an efficient solution on your behalf. Attorney Donald Bell has over 20 years of legal experience, which has given him the knowledge to effectively strategize for every case.

The Difference Between Secured and Unsecured Debt

When you file for Chapter 13 bankruptcy, all of your secured and unsecured debts will be rolled into a single repayment plan. Understanding the difference between these two types of debt is critical for drafting a sensible repayment plan.

Secured debts refer to any debts that are backed by collateral. If you fall behind on a secured debt, your creditor can seize the collateral. Mortgages and car loans are common examples of secured loans, but they can also include personal loans.

As you can likely infer, unsecured debts are debts without collateral. These might include student loans, credit card bills, medical expenses, tax obligations, child support, and more. Many unsecured debts can be wiped away at the end of a Chapter 13 bankruptcy repayment plan, with some exceptions.

What Debts Are Prioritized in Chapter 13?

The purpose of the repayment plan is to pay off your debts in order of priority. If you are behind on child support, alimony, or unpaid taxes, those will typically have to be completely repaid by the end of your plan. The next most important item in order of priority is your secured debts, especially if you are in arrears.

Any non-priority unsecured debts will also be gradually paid off in the plan. The remainder of these non-priority debts can be discharged upon completion of the plan, which can last three to five years. At The Law Office of Donald L. Bell, our bankruptcy attorney can help you draft a realistic repayment plan that addresses your most urgent debts while also making other necessary payments.

Avoiding Foreclosure Through Chapter 13 Bankruptcy

Many people turn to Chapter 13 bankruptcy as a way to defend against foreclosure. Your mortgage payments do not go away under Chapter 13 bankruptcy, but it can provide you with the time and grace you need to catch up on late payments.

If you have fallen too far behind on your mortgage payments, the bank could seize your home as collateral. However, as soon as you file for bankruptcy, an automatic stay will be issued against your creditors. This means that your house cannot be foreclosed on while you are going through bankruptcy.

By the time you complete your repayment plan, you will likely be in a better position to keep making regular payments on your mortgage, allowing you to preserve your home for years. At The Law Office of Donald L. Bell, we can address other mortgage-related concerns, such as stripping liens on the property.

Meet With a District Heights, MD Chapter 13 Bankruptcy Attorney

Living with debt can feel like a heavy weight around your neck. At The Law Office of Donald L. Bell, our District Heights, Maryland bankruptcy lawyer can help to lighten that burden through devoted advocacy and clear legal advice. We offer free consultations in consumer cases. Call us at 301-614-0535 or contact us online to get started today.