Milford Mill Foreclosure Defense Attorney

Experienced Foreclosure Defense Lawyer for Clients in Milford Mill, Maryland

Sometimes, all it takes is one financial emergency for a homeowner to fall behind on their mortgage. This can have major consequences, as a bank or lender may take legal action to begin foreclosure proceedings on the home when a mortgage goes unpaid for too long. If you are worried about an impending foreclosure or you have received notice of a lender's intent to foreclose, reach out to a Milford Mill, MD foreclosure defense attorney.

When you are at risk of losing your home, you need a strong legal advocate on your side. As a seasoned professional with over 20 years of experience in bankruptcy law, Attorney Donald Bell of The Law Office of Donald L. Bell can help formulate the best plan to protect your home.

How Chapter 13 Bankruptcy Can Halt Foreclosure Proceedings in Milford Mill

Chapter 13 bankruptcy can halt foreclosure proceedings in Milford Mill through the automatic stay, which takes effect the moment your case is filed. Your lender must stop moving forward with the foreclosure, whether the case was just filed in circuit court or a sale is set for later this week. In most situations, a sale held after the bankruptcy filing has no legal effect.

Timing and communication both play a part. Once you file, the lender and the attorney or trustee handling the sale should be notified right away. Prompt notice helps make sure the sale is taken off the calendar instead of going forward by mistake.

The stay generally remains in place as long as your bankruptcy case is open. However, a lender can ask the bankruptcy court to lift it, especially if you fall behind on payments after filing. Keeping up with both your mortgage and your plan is the best way to keep the foreclosure on hold.

Catching Up on Your Mortgage Through a Chapter 13 Repayment Plan

Catching up on your mortgage through a Chapter 13 repayment plan involves two separate payment streams. The first is your ongoing mortgage payment, which comes due each month just as it did before you filed. The second is the arrearage, or the total amount you fell behind before the bankruptcy began.

Your regular mortgage payment can change during the plan. Property taxes and insurance premiums often rise, which can increase your escrow payment. Lenders must give notice of these changes, and your budget needs to account for them. If you come into extra money, such as a bonus or tax refund, you may be able to pay off the arrears sooner.

Will the Bankruptcy Court Approve My Repayment Plan?

The judge does not simply sign off on any bankruptcy plan that is filed. Instead, the court looks at whether the plan is fair to creditors and realistic for you.

Several factors go into that decision. The plan must be proposed in good faith. You must be able to afford the payments based on your income and expenses. Your disposable income must go toward the plan, and priority debts like recent taxes generally must be paid in full. You must also be current on any ongoing child support or alimony and have filed your recent tax returns.

The trustee reviews your plan and may recommend approval or raise concerns. Creditors can object as well. If the court finds a problem, you can usually revise the plan and try again rather than having your case end. Careful preparation before filing gives your plan a stronger chance of approval the first time it is reviewed.

Contact Our Milford Mill Foreclosure Defense Lawyer Today

At The Law Office of Donald L. Bell, we help homeowners stop pending sales and work toward a confirmed Chapter 13 plan within their means. Free consultations are available in consumer cases. Contact our Milford Mill, MD foreclosure defense attorney or call 301-614-0535 to get started.