Pikesville, MD Foreclosure Defense Attorney

Skilled Foreclosure Defense Lawyer for Clients in Pikesville

As a homeowner, you may experience fluctuations in your financial situation that can affect your ability to pay your mortgage on time. If you fall too far behind, you may be confronted by lenders looking to start foreclosure proceedings. To protect your home from aggressive lenders, reach out to a Pikesville foreclosure defense lawyer for help.

At The Law Office of Donald L. Bell, we help clients take control of their debts through petitions for bankruptcy. Since our firm was first established, we have assisted numerous clients going through financial troubles, including foreclosure. Many of our past clients have spoken highly of our services in testimonials, which we owe to our compassionate, professional legal services.

Understanding Chapter 13 Bankruptcy

Chapter 13 bankruptcy, often referred to as a "wage earner's plan," is a legal process that allows individuals with regular income to reorganize their debts and repay them over a period of three to five years. Compared to Chapter 7 bankruptcy, which may require you to liquidate some property, Chapter 13 lets you retain your property, such as your home and car, while addressing your financial challenges.

Chapter 13 bankruptcy is ideal for people who are behind on their mortgage or other secured debts but have a steady income and the ability to make monthly payments toward those debts. By filing for Chapter 13, individuals can create a structured repayment plan that is approved by the court, allowing them to catch up on missed payments and eventually discharge certain debts after completing the plan.

What Does a Repayment Plan Do?

Once you file a petition for Chapter 13 bankruptcy, you will propose a repayment plan to the bankruptcy court that outlines how you will pay off your debts over time. The plan is designed to reorganize your debts in a way that is financially manageable, allowing you to catch up on overdue payments while continuing to pay for your regular obligations. The repayment plan includes both collateral and non-collateral debts.

Secured debts backed by collateral such as car loans or mortgages are given priority, and the plan will typically require you to pay these off in full or over an extended period. Unsecured debts, such as credit card balances and medical bills, are treated differently. You may only need to pay a portion of these debts, depending on your income, assets, and the amount of your unsecured debt. Once you complete the repayment plan, any remaining non-priority unsecured debts can be discharged, meaning you will no longer be legally obligated to pay them.

The repayment plan provides the framework to manage your finances and avoid losing essential assets while gradually getting back on track financially.

Obtaining an Automatic Stay From Foreclosure Proceedings

One of the most significant benefits of Chapter 13 bankruptcy is the automatic stay, which goes into effect immediately upon filing. The automatic stay halts most collection actions, including foreclosure proceedings, as soon as the bankruptcy petition is filed. This means that if your lender has initiated foreclosure or threatened to take your home, the automatic stay temporarily stops these actions, giving you a critical opportunity to catch up on missed mortgage payments.

For homeowners facing foreclosure, the automatic stay can provide much-needed relief by preventing a foreclosure sale and offering time to develop a repayment plan. However, it is important to note that the automatic stay is not permanent. If you fail to adhere to the repayment plan or miss payments, creditors may seek permission from the court to lift the stay and resume foreclosure. It is crucial to work with a skilled bankruptcy lawyer to ensure compliance with the plan and to increase the likelihood of saving your home from foreclosure.

Meet With a Pikesville, Maryland Foreclosure Defense Lawyer

If you need help getting caught up on your mortgage, do not hesitate to reach out to our firm. At The Law Office of Donald L. Bell, we believe that preserving your home is a pathway to generational wealth. Call our offices at 301-614-0535 or contact our Pikesville foreclosure defense attorney to schedule a free consultation.