College Park Chapter 13 Bankruptcy Lawyer

Attorney for Debt Reorganization Through Chapter 13 in College Park, MD

Chapter 13 bankruptcy is a powerful legal tool that is used by many people to regain control over their financial situation by creating a structured repayment plan to address their debts. Unlike Chapter 7 bankruptcy, which may require the liquidation of certain assets, Chapter 13 focuses on reorganizing debts so that some of what is owed can be paid off over a few years. This type of bankruptcy offers significant advantages, especially for people and families with stable incomes who wish to protect their assets, avoid foreclosure, and catch up on overdue payments.

At The Law Office of Donald L. Bell, our College Park Chapter 13 bankruptcy attorney assists clients in creating personalized debt repayment plans that allow them to address their financial challenges while protecting their most important assets. Filing for Chapter 13 bankruptcy can be a complex process, but with our help, you can navigate the process with confidence. We will work closely with you to ensure that your repayment plan is feasible and help you meet all of your legal requirements to receive relief from your debts.

We will advise you on how to restructure your debts, manage creditor negotiations, and protect your property during the bankruptcy process. We will help you file the necessary paperwork and ensure that your Chapter 13 plan complies with the legal requirements. Our goal is to help you achieve financial stability in the future.

Requirements for Filing for Chapter 13 Bankruptcy

To consolidate your debts and receive relief under Chapter 13, several requirements must be met:

• Regular income: Chapter 13 is designed for people who have a regular, steady income that will allow them to make payments under a court-approved repayment plan. The income you earn that may be put toward your repayment plan may include wages, pensions, Social Security benefits, or other sources of money that you earn or receive regularly.
• Debt limits: Your unsecured debts (such as credit card debt or medical bills) and your secured debts (such as a mortgage or car loan) must be below a certain amount. These limits are periodically adjusted to account for inflation. We can advise you on the specific limits that may apply in your case.
• Credit counseling: Before filing for bankruptcy, you will need to take a course through an approved agency or provider that will review your financial situation and provide you with information about the options available to you. This is a mandatory step that is meant to help debtors understand their financial options and make informed decisions.
• Filing a repayment plan: After filing for bankruptcy, you will propose a detailed repayment plan that outlines how you intend to repay creditors over a period of three to five years. This plan must be submitted to the court and approved by a bankruptcy judge.

At The Law Office of Donald L. Bell, we can provide comprehensive legal guidance to help you understand your rights, responsibilities, and the best path forward. We will make sure you take the correct steps to file for bankruptcy, establish a repayment plan, and address any concerns related to your debts.

How Debts Are Handled in a Chapter 13 Repayment Plan

The repayment plan created in a Chapter 13 case is designed to accommodate the debtor's financial situation while ensuring that creditors receive a fair share of the payments made. Debts are categorized into three main types:

• Priority debts: These are debts that must be paid in full during the Chapter 13 plan. They include obligations such as unpaid taxes, child support, and alimony. Because these debts are given priority under bankruptcy law, they must be addressed before other types of debt.
• Secured debts: These debts are backed by collateral, and they may include mortgages or car loans. In addition to making payments toward your repayment plan, you will continue paying these debts to avoid foreclosure or repossession. Any payments you have missed or other additional fees can be included in the repayment plan, ensuring that you can become current on these loans. In some cases, it may be possible to renegotiate the terms of secured loans, such as reducing interest rates or extending the payment period.
• Unsecured debts: These include debts like credit card balances, medical bills, and personal loans that are not secured by collateral. Unsecured debts may be partially or fully paid off through your repayment plan, and they will be discharged at the end of the Chapter 13 bankruptcy process as long as you make the required payments for the designated period.

A major benefit of Chapter 13 bankruptcy is that it allows you to consolidate payments into a single, manageable monthly amount. This can simplify the process of repaying some of your debts, and it can also provide relief from creditor harassment and collection efforts.

Why Chapter 13 Bankruptcy May Be the Right Choice for You

Reorganizing your debts through Chapter 13 can provide a number of unique advantages, including:

• Preventing foreclosure: One of the most significant benefits of Chapter 13 bankruptcy is the ability to stop foreclosure proceedings. Filing for bankruptcy immediately triggers an automatic stay, which will halt a foreclosure. You can then catch up on overdue mortgage payments through your repayment plan. This can be a lifesaver if you are at risk of losing your home.
• Recovering repossessed property: If your vehicle or other property has been repossessed by a lender, Chapter 13 may give you the opportunity to recover it. By including the loan payments and past-due amounts in your repayment plan, you can regain possession of your property, and you may also be able to modify your loan to receive more favorable terms.
• Reducing or eliminating certain debts: While Chapter 13 focuses on repayment, it will also allow for the discharge of unsecured debts after the completion of your repayment plan. Once you successfully complete the Chapter 13 bankruptcy process, any remaining unsecured debts can be wiped out.
• Becoming current on financial obligations: Chapter 13 allows you to spread out payments toward past-due amounts on different debts over the course of your repayment plan. This can help you avoid a default or penalties for failure to meet your domestic support obligations.

Contact Our College Park, MD Chapter 13 Bankruptcy Attorney

At The Law Office of Donald L. Bell, we can advise you on the best steps to take to address your debts and financial obligations. We can make sure you will be able to file for Chapter 13 bankruptcy and develop a repayment plan that fits your financial situation. To learn more about how Chapter 13 bankruptcy can help you address your debt-related issues, contact our firm at 301-614-0535 and schedule a free consultation.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.