Towson Chapter 13 Bankruptcy Lawyer

Experienced Attorney for Chapter 13 Bankruptcy Cases in Towson, MD

A recent study by Bank of America found that 30 percent of all Americans are living paycheck to paycheck. With this in mind, you can imagine how easy it is to fall behind on a loan when your earnings are just barely enough to cover the cost of living. This can eventually lead to creditors knocking at your door to collect the debts that you owe. When your financial situation seems bleak, a Towson, Maryland Chapter 13 bankruptcy attorney can help you seek relief from your debts.

Filing for bankruptcy is not a simple process, and mistakes in filing can lead to your petition being delayed or denied. At The Law Office of Donald L. Bell, we can provide you with advice and advocacy, helping you follow the correct steps while protecting your best interests.

Managing Secured and Unsecured Debts

Chapter 13 bankruptcy can allow you to manage your debts with physical property, known as secured debts, as well as your debts without any collateral, known as unsecured debts. If you fail to pay back your secured debts, your creditors could come back to seize that property.

Trying to figure out which debts to pay off first can be complicated. By filing for Chapter 13 bankruptcy, you can reorganize those debts by order of importance. At The Law Office of Donald L. Bell, we can look at all of your secured and unsecured debts to determine which of them should be given priority. As an added benefit, once you complete your repayment plan, your non-priority unsecured debts can be discharged, freeing you from that financial responsibility.

Protections Available in Chapter 13 Bankruptcy

If you want to safeguard your assets and property from your creditors, Chapter 13 may be the right option for you. When you file for Chapter 13 bankruptcy, your creditors must cease all of their collection efforts, a prohibitive action known as an automatic stay. If your creditors violate the automatic stay, they could be saddled with fines and other penalties in court.

Other forms of bankruptcy, like Chapter 7 bankruptcy, also involve an automatic stay. But unlike Chapter 7 bankruptcy, filing for Chapter 13 bankruptcy allows you to keep your assets. Chapter 13 bankruptcy can remain in effect for three to five years, meaning that you cannot be harassed by your creditors in that time. However, if you fall behind on your repayment plan, your bankruptcy period could be terminated. As such, it is important that you make regular payments on your plan and petition the bankruptcy court for a modification if necessary.

Getting Approval for Your Bankruptcy Petition

When you file for Chapter 13 bankruptcy, a bankruptcy trustee will be assigned to your case. The role of the trustee is to ensure that you are fulfilling your obligations, and when you contribute to your repayment plan, the trustee will then distribute the money to your creditors.

Before you submit your repayment plan to a judge, it must first be reviewed by your trustee. The trustee will also extend invitations to your creditors, who also have the liberty to ask questions about your ability to pay off your debts. This review of your repayment plan is known as the 341 meeting.

If the 341 meeting goes smoothly, your case will progress to the confirmation hearing in bankruptcy court. A judge will look over your repayment plan to see if it is feasible before ultimately making a final decision. Our attorney can represent you in both the 341 meeting and the confirmation hearing, speaking on your behalf whenever necessary.

Meet With a Towson, Maryland Chapter 13 Bankruptcy Attorney

Our Towson Chapter 13 bankruptcy lawyer can help you petition for relief from your debts. To schedule a free consultation with The Law Office of Donald L. Bell today, call our offices at 301-614-0535 or reach out to us online.