Hyattsville Chapter 13 Bankruptcy Attorney

Lawyer for Debt Reorganization in Hyattsville, MD

If you are struggling with overwhelming debt, Chapter 13 bankruptcy may be your ideal pathway to financial stability. For residents of Hyattsville, Maryland, The Law Office of Donald L. Bell offers compassionate and knowledgeable representation to help navigate the complexities of the bankruptcy process. We can help you create a plan that will allow you to regain control of your finances, protect your assets, and set yourself up for a more secure financial future.

Understanding Chapter 13 Bankruptcy

Chapter 13 bankruptcy is designed for people with a steady income who are unable to pay off their debts but wish to keep their property. While Chapter 7 bankruptcy may require the liquidation of some assets to repay creditors, Chapter 13 will reorganize debts into a single payment plan, allowing unsecured debts to be discharged after ongoing payments are made for a few years.

Key Features of Chapter 13 Bankruptcy

• Repayment Plan: Chapter 13 bankruptcy will establish a repayment plan that will last for between three and five years, depending on a person's income. During this time, monthly payments will be made to address some of the debts owed.
• Retention of Property: One of the main advantages of Chapter 13 is the ability to keep a home, car, and other important assets, as long as a person continues making payments under their repayment plan.
• Debt Discharge: Once a Chapter 13 repayment plan has been completed, certain debts may be discharged, relieving the debtor of these financial burdens moving forward.
• Stopping Foreclosure and Repossession: Chapter 13 bankruptcy offers protections for homeowners facing foreclosure or people who have had their property repossessed. Filing for Chapter 13 places an automatic stay on foreclosure proceedings, and missed mortgage payments can be included in a repayment plan. In many cases, it is also possible to recover repossessed property by incorporating payments into the structured plan.

Benefits of Chapter 13 Bankruptcy

Chapter 13 bankruptcy offers numerous advantages to people who are facing significant financial difficulties. Some of the most notable advantages include:

• Avoiding Foreclosure: Filing for Chapter 13 bankruptcy stops foreclosure proceedings and provides the opportunity to catch up on missed mortgage payments. This can be particularly helpful for homeowners who are at risk of losing their homes due to financial hardship.
• Recovering Repossessed Property: If a car or other valuable property has been repossessed, Chapter 13 can allow for the recovery of these items. This can provide a lifeline to people who rely on vehicles for work or other essential activities.
• Reducing or Eliminating Debt: At the end of a Chapter 13 repayment plan, the obligation to repay any remaining unsecured debts such as credit card balances or medical bills will be eliminated. This discharge of debts can provide significant relief and ensure that a debtor can regain financial independence.
• Consolidating Debts Into a Single Payment: Chapter 13 bankruptcy groups multiple debts into one manageable payment, simplifying the repayment process and allowing a debtor to focus on rebuilding their financial health.

Steps in the Chapter 13 Bankruptcy Process

Filing for Chapter 13 bankruptcy involves a series of steps that must be followed closely. An attorney from The Law Office of Donald L. Bell can provide guidance through every phase of this process.

Step 1: Assess Your Eligibility

To file for Chapter 13 bankruptcy, you must meet certain eligibility requirements. First, you must demonstrate that you have a regular income sufficient to cover the payments required under the repayment plan. Additionally, your secured and unsecured debts must fall within specific limits. The limits on secured and unsecured debt are adjusted every few years, so it is important to consult with a lawyer to understand the current thresholds and assess your eligibility.

Step 2: Complete Credit Counseling

Before filing for bankruptcy, you are required to take a credit counseling course. This step is mandatory and must be completed within 180 days before you file your bankruptcy petition. Credit counseling helps assess whether bankruptcy is the right solution and ensures you understand the financial implications.

Step 3: Filing the Bankruptcy Petition

We can make sure your petition for Chapter 13 bankruptcy is filed correctly. This petition will include a variety of documents that provide information about your finances and your proposed repayment plan. We will ensure that all documents are accurately completed and submitted within the proper timeframes.

Step 4: Establishing the Repayment Plan

Your proposed repayment plan will outline how you intend to repay your creditors over the course of the next three to five years. Your attorney will work with you to develop a plan that is realistic and feasible based on your income and expenses. The plan must be approved by the bankruptcy court before it goes into effect.

Step 5: Attending the Meeting of Creditors

You will be required to attend a meeting with your creditors, often referred to as the "341 meeting." During this meeting, the bankruptcy trustee will ask questions about your financial situation and your proposed repayment plan. Your attorney will represent you at this meeting and help you respond to any questions or concerns.

Step 6: Implementing the Plan

Once your repayment plan is approved, you will begin making payments to the bankruptcy trustee, who will distribute the funds to your creditors. As long as you continue making your payments on time, you will remain protected from creditor actions, such as foreclosure or wage garnishment. After you complete the plan, your bankruptcy case will be closed, and any remaining unsecured debts will be discharged.

Contact Our Hyattsville, Maryland Chapter 13 Bankruptcy Lawyer

If you have significant, unmanageable debts and need a solution that will allow you to keep your property and repay your debts over time, Chapter 13 bankruptcy may be beneficial. The Law Office of Donald L. Bell can help you navigate the bankruptcy process and achieve financial relief. Contact our office today at 301-614-0535 to schedule a free consultation.

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