Germantown Foreclosure Defense Lawyer

Supportive Attorney for Foreclosure Defense in Germantown, Maryland

As a homeowner, you may have multiple financial obligations and debts to take care of. If you end up too many months behind on your mortgage, however, you could face the threat of foreclosure. To get up to date on your debts and protect your home from creditors, reach out to a Germantown foreclosure defense attorney for help.

When it comes to stopping foreclosure proceedings, filing for bankruptcy is a powerful tool at your disposal. At The Law Office of Donald L. Bell, we can assist with this process, using Chapter 13 bankruptcy as a means to regain control of your financial situation. We provide all clients with personalized legal services, providing clear guidance suited to each case.

Why Choose Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is an ideal option for individuals who want to keep their assets and reorganize their finances rather than liquidate property, as is often required in Chapter 7 bankruptcy.

While Chapter 7 bankruptcy involves the liquidation of non-exempt property to pay creditors, Chapter 13 can allow you to preserve your home, car, and other property by creating a manageable repayment plan. This makes Chapter 13 particularly appealing for individuals who have valuable assets that they want to retain, but are struggling to keep up with their debts.

Another key benefit of Chapter 13 is that it is best suited for individuals with a steady income. Unlike Chapter 7, which requires you to qualify based on your income and expenses, Chapter 13 allows people who earn regular income to propose a repayment plan to pay off all or part of their debts over the course of a few years. This structured plan provides a predictable way to regain control of your finances, as you can catch up on overdue debts without the need to sell assets. If you have a reliable source of income and need more time to pay off your debts while protecting your property, Chapter 13 is often the most effective solution.

Can Chapter 13 Stop Foreclosure Proceedings?

One of the most powerful benefits of filing for Chapter 13 bankruptcy is the automatic stay, which halts foreclosure proceedings as soon as the petition is filed. This means that lenders cannot continue foreclosure actions, such as auctioning your home or scheduling hearings, while your bankruptcy case is pending. The automatic stay also prevents other creditors from pursuing collection efforts like wage garnishments, lawsuits, or repossession.

It is often advisable to file for Chapter 13 as soon as you begin falling behind on mortgage payments, as this gives you the best chance to reorganize your debts and catch up on past-due payments through the repayment plan.

What Do I Need to Do to Apply for Chapter 13 Bankruptcy?

To apply for Chapter 13 bankruptcy, there are several necessary steps. First, you must complete a mandatory credit counseling course, which helps you assess your financial situation and explore alternatives to bankruptcy. This course must be taken within 180 days before filing your petition.

Next, you will file your petition with the bankruptcy court, along with a detailed list of your assets, liabilities, income, and expenses. This petition is accompanied by a proposed repayment plan that outlines how you intend to pay off your debts over the next three to five years.

After filing, you will attend a 341 meeting, also known as the meeting of creditors, where a trustee will review your financial information and your proposed plan. Creditors may also attend, but they are not required to. Finally, you will have to go to a final hearing in bankruptcy court, where the court will review your plan and decide whether to approve it.

Contact a Germantown, MD Foreclosure Defense Attorney

Sometimes, a responsible homeowner can end up burdened with an unmanageable amount of debt. At The Law Office of Donald L. Bell, we offer counsel and support to homeowners in need, working out personalized plans suited to each client's circumstances. To schedule a free initial consultation today, contact our Germantown foreclosure defense lawyer or call our firm at 301-614-0535.