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Clinton Chapter 13 Bankruptcy Lawyer
Chapter 13 Bankruptcy Attorney Representing Clients in Clinton, Maryland
At The Law Office of Donald L. Bell, we have been helping clients in Clinton, Maryland work through the details of Chapter 13 bankruptcy for over 20 years. We will guide you through the process, ensuring that your repayment plan is tailored to your specific needs and that your rights are protected throughout your case. Filing for Chapter 13 can be a powerful tool to help you regain financial stability, and we are committed to providing the support and legal representation you need to succeed.
What Is Chapter 13 Bankruptcy?
This type of bankruptcy allows a person who earns a regular income to repay all or part of their debts over a period of three to five years. When you file for Chapter 13 bankruptcy, you will propose a repayment schedule to the court, detailing how you intend to make payments to creditors. The repayment amount is based on your income and expenses, and the types of debts you owe may also be considered. While your case is ongoing, creditors are generally not allowed to pursue collection efforts as long as you continue making payments as required.
Once you successfully complete your repayment plan, any remaining eligible unsecured debt will be discharged. Chapter 13 bankruptcy can be particularly beneficial if you have gotten behind on mortgage payments, a car loan, or taxes, as it provides a structured way to catch up on these debts without losing valuable assets.
Benefits of Filing for Chapter 13 Bankruptcy
Some of the primary advantages of Chapter 13 include:
- Asset Protection: Where as long as you stay current with your repayment plan, you can avoid foreclosure, repossession, and other collection actions.
- Debt Consolidation: You will make a single payment to the bankruptcy trustee, who will distribute the funds to your creditors.
- Repayment of Secured Debts: Your repayment plan will allow you to catch up on missed mortgage or car payments over time, helping you prevent foreclosure or repossession.
- Reduced Debt: A portion of your unsecured debt may be discharged at the end of your repayment plan, eliminating the requirement to fully repay credit card debts, medical expenses, and personal loans.
- Protection From Creditors: Since creditors will be prohibited from taking further collection actions against you, you can avoid lawsuits, wage garnishment, and harassing phone calls.
- Manageable Repayment Terms: The amount you will pay during your repayment plan will be based on your disposable income, ensuring that you will have sufficient financial resources to cover your ongoing expenses during the bankruptcy process. The repayment period typically lasts between three and five years.
Chapter 13 Bankruptcy FAQs
Answer: You must have a regular source of income, and the total amount of your debts (both secured and unsecured) must fall below certain limits. You must also have filed all required income tax returns for the last four years.
Answer: The duration of your repayment plan will depend on your income. If your income is below the median income for Maryland, your plan will typically last three years. If your income exceeds the state median, you will likely be required to complete a five-year plan. During this time, you will make regular payments to the bankruptcy trustee, who will distribute the funds to your creditors.
Answer: Yes, one of the major benefits of Chapter 13 is the ability to keep your home, car, and other important assets. As long as you remain current on your repayment plan, you can prevent foreclosure or repossession. Chapter 13 also allows you to catch up on past-due mortgage or car loan payments over time.
Answer:
- Secured debts, such as mortgages and car loans
- Unsecured debts, such as credit card balances and medical bills
- Priority debts, such as taxes, child support, and alimony
Your repayment plan will prioritize certain debts. In general, priority debts must be repaid first, and ongoing payments toward secured debts will be required. Some secured debts may be repaid, and their remaining balances will be discharged when your bankruptcy case is completed.
Answer: This can jeopardize your Chapter 13 case, and the bankruptcy trustee may request that your case be dismissed. However, if you face temporary financial difficulties, it may be possible to modify your repayment plan.
Answer: Filing for bankruptcy will impact your credit score, and a Chapter 13 bankruptcy will remain on your credit report for seven years. However, many people find that their credit begins to improve after completing their repayment plan, as they have reduced their debt and reestablished a manageable financial situation. Over time, you can rebuild your credit by making consistent payments and managing your finances responsibly.
Answer: Yes. However, there are specific time limits that apply. You must wait at least four years after your Chapter 7 discharge before filing for Chapter 13. Our attorney can help you determine your eligibility and guide you through the process of filing for bankruptcy.
Contact Our Chapter 13 Bankruptcy Attorney in Clinton, MD
As you take steps to receive relief from your debts, it is important to have an experienced attorney by your side. At The Law Office of Donald L. Bell, we will help you create a realistic repayment plan and work to secure a positive outcome for your financial future. Call 301-614-0535 today or fill out an online contact form to arrange a free consultation and take the first step toward financial stability.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
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Proudly Serving Greenbelt, MD and surrounding areas including Berwyn Heights, Hollywood, Lanham, Seabrook, New Carrollton, Wildercroft, College Park, Silver Spring, Rockville, Bowie, Burtonsville, Largo, Takoma Park, Upper Marlboro, Clinton, Hyattsville, Acredale, Beltsville, Snowden Pond, Ammendale, and White Oak Manor.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
