Frederick, Maryland Foreclosure Defense

Skilled Foreclosure Defense Lawyer for Clients in Frederick, MD

The looming threat of foreclosure is often a massive source of stress for homeowners trying to make ends meet. When financial obligations become too much to deal with at once, you may end up falling behind on your mortgage payments. To avert the potential crisis of losing your home, consider working with a Frederick, Maryland foreclosure defense attorney.

Filing for Chapter 13 bankruptcy can help you take control of your finances while retaining ownership of your house. At The Law Office of Donald L. Bell, we have years of experience representing clients in bankruptcy petitions, handling each case with an intensely personalized approach. We will consider your unique financial situation and work with you to develop a plan to fend off foreclosure.

Can I Keep My Home Through Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is often the most practical option for homeowners who want to preserve their home while addressing financial difficulties. Unlike Chapter 7 bankruptcy, which may require selling property to pay creditors, Chapter 13 allows you to retain your home by creating an organized repayment plan to catch up on missed mortgage payments.

Filing Chapter 13 can immediately stop foreclosure proceedings through the automatic stay, giving homeowners crucial breathing room to reorganize their finances and develop a realistic plan for becoming current on their mortgage. This temporary protection ensures that lenders cannot proceed with foreclosure or other collection actions while you work to stabilize your financial situation.

For many homeowners, Chapter 13 provides the opportunity to maintain ownership of their home and gradually address arrears. Even if you are several months behind on mortgage payments, the repayment plan can allow you to spread the overdue amounts over three to five years while continuing to make regular mortgage payments. By doing so, you can avoid the loss of your home and protect your family's stability, making Chapter 13 a valuable tool for long-term financial recovery.

Debt Reorganization in Chapter 13

A key feature of Chapter 13 is the ability to reorganize your debts under a court-approved plan. Debts are categorized by priority, which determines the order in which they must be repaid. Secured debts, such as mortgages, car loans, and liens, are addressed first, ensuring that your home and other collateral remain protected. Certain unsecured debts like child support and tax obligations may also take precedence. Chapter 13 allows you to catch up on overdue payments as part of your repayment plan while maintaining your regular payments going forward.

Unsecured debts, including credit card bills, medical expenses, and personal loans, are typically repaid after secured debts are addressed. The repayment plan provides a structured and manageable approach, enabling you to satisfy your financial obligations over time while retaining important assets like your home.

Getting Approved for Chapter 13

Approval of a Chapter 13 bankruptcy requires filing a petition with the bankruptcy court and submitting a proposed repayment plan. The plan outlines how you will satisfy your creditors over the three- to five-year period. After filing, you will attend a 341 meeting with the bankruptcy trustee and any creditors who choose to attend, where your financial situation and plan are reviewed.

Once the court confirms your repayment plan, it becomes legally binding, and you can begin making structured payments to address your debts. It is essential to work with an experienced bankruptcy attorney throughout this process to ensure that your petition is properly prepared and your plan meets all legal requirements. With the right guidance, Chapter 13 can offer a viable path to preserving your home and reorganizing your finances effectively.

Contact a Frederick Foreclosure Defense Attorney

Do you need help protecting your home from foreclosure? If so, get in touch with The Law Office of Donald L. Bell today. To schedule a free consultation, call our office at 301-614-0535 or contact our Frederick, MD foreclosure defense lawyer today.