Lochearn Foreclosure Defense Attorney

Knowledgeable Foreclosure Defense Lawyer for Homeowners in Lochearn, Maryland

Every homeowner experiences financial strain at some point. During especially turbulent periods, a homeowner might miss a mortgage payment, leading to aggressive collection efforts by the home lender. If you are afraid of imminent foreclosure on your home, you might want to consider filing for bankruptcy to get caught up on payments. A Lochearn, Maryland foreclosure defense lawyer can explain your options to you in detail.

When your home is at stake, you should entrust your case to a seasoned law firm with experience handling foreclosures. At The Law Office of Donald L. Bell, we have decades of legal experience and a history of helping clients in need.

Is There a Right Time to File for Bankruptcy as a Homeowner?

The right time to file for bankruptcy as a homeowner is usually before a foreclosure sale takes place, and often well before. Once a sale is underway, keeping the home becomes much harder, even if you can afford a repayment plan.

Waiting too long can also make the arrears harder to manage. The more months you fall behind, the larger your monthly plan payment may need to be. Homeowners in Lochearn who file while the balance is still manageable often have an easier time completing their plans.

Your own finances play a role in the timing as well. Chapter 13 bankruptcy works best when your income is steady enough to support a multi-year plan. Recent changes in your earnings, a pending tax refund, or a large payment to a relative in the months before filing can all affect your case. A past bankruptcy filing may also limit when you can receive a new discharge. Reviewing these details before you file can help you avoid surprises later.

Steps to File for Chapter 13 Bankruptcy in Lochearn

The steps to file for Chapter 13 bankruptcy in Lochearn follow a set order, and missing one can delay your case. You will first complete a credit counseling session from an approved provider and receive a certificate.

After that, your petition, financial schedules, and proposed plan are prepared. These documents list your income, living expenses, property, and every debt you owe. Accuracy is important, since the information is signed under penalty of perjury. The petition is then filed with the U.S. Bankruptcy Court for the District of Maryland, along with the filing fee.

Your first plan payment to the trustee is generally due within 30 days of filing. Over the next few weeks, you will attend a meeting of creditors and answer questions about your finances. The judge later decides at a confirmation hearing whether to approve the plan. Once you make your final plan payment and complete a financial management course, you can receive your discharge.

Changing Your Mortgage Terms During Chapter 13 Bankruptcy

Changing your mortgage terms during Chapter 13 bankruptcy is possible in some situations, but the rules are stricter for your primary home. Federal law generally does not allow a Chapter 13 plan to lower the interest rate or principal on a mortgage secured only by the house you live in. The plan can still cure missed payments, but the original loan terms usually stay in place.

A lender can also agree to new terms on its own. Many servicers will consider a loan modification while a bankruptcy case is open. If your lender offers one, the bankruptcy court will typically need to approve it before it takes effect. Our lawyer can review any offer, make sure the new payment fits within your plan, and request the court's approval.

Contact Our Lochearn, MD Foreclosure Defense Lawyer

Missed mortgage payments do not have to cost you the home you have worked to keep. At The Law Office of Donald L. Bell, we help homeowners prepare a strong Chapter 13 case and push back against impending foreclosure. Free consultations are available for consumer cases. Contact our Lochearn, Maryland foreclosure defense attorney or call 301-614-0535 to talk about your next steps.