Rockville, MD Chapter 13 Bankruptcy Lawyer

Attorney for Chapter 13 Debt Reorganization in Rockville, MD

When you are dealing with large debts that you will be unable to repay, Chapter 13 bankruptcy can provide a powerful tool for addressing and reducing these financial obligations while protecting valuable assets like your home and vehicle. During a Chapter 13 bankruptcy case, a repayment plan will be created, giving you the opportunity to catch up on overdue payments and potentially eliminating certain types of debts. At The Law Office of Donald L. Bell, we help residents of Rockville, Maryland and other nearby cities file for Chapter 13 bankruptcy. We can help you protect their assets, prevent foreclosure, and regain financial stability.

What Is Chapter 13 Bankruptcy?

When you file for Chapter 13 bankruptcy, you will be able to restructure certain debts into a single manageable payment plan that will last between three and five years. By filing for bankruptcy, you can prevent creditors from taking actions to collect debts, including initiating or proceeding with a foreclosure or repossessing a vehicle or other items. Your repayment plan will allow you to pay off the past-due amounts and address other types of debts. At the end of the repayment plan, unsecured debts that have not been fully paid off will be discharged, eliminating your requirement to pay the remaining balances.

Benefits of Chapter 13 Bankruptcy

Some of the key benefits that you may achieve by filing for Chapter 13 bankruptcy include:

• Preventing the foreclosure of your home or the repossession of other property you own
• Consolidating multiple debts into a single, manageable monthly payment
• Reducing unsecured debt at the end of the repayment plan
• Stopping creditor harassment, wage garnishment, or lawsuits from creditors

Preventing Foreclosure with Chapter 13 Bankruptcy

One of the most significant advantages of Chapter 13 bankruptcy is that it can put a halt to a foreclosure and help a homeowner catch up on past-due mortgage payments. When you file for Chapter 13, the automatic stay ordered by the court will halt foreclosure proceedings that have been initiated, allowing you to stay in your home while you work through the bankruptcy process.

As part of your Chapter 13 repayment plan, you can include past-due mortgage payments and spread them out over the life of the plan. This allows you to catch up on missed payments while continuing to make your regular monthly mortgage payments going forward. By the end of the plan, you will be current on your mortgage, allowing the foreclosure proceedings to be dropped.

Our attorney at The Law Office of Donald L. Bell will help ensure that your Chapter 13 repayment plan addresses your mortgage arrears and ensures that you can keep your home.

Options for Repossessed Vehicles and Property

If your vehicle or other property has been repossessed due to missed payments, Chapter 13 bankruptcy may provide a way to recover the property. Once your bankruptcy case is filed, the automatic stay will prevent a creditor from selling repossessed property, giving you time to address the debt. During your case, you may be able to reinstate the loan, and the missed payments can be included in your repayment plan. Alternatively, you may be able to negotiate new terms to regain possession of the vehicle.

Chapter 13 also provides options for addressing the remaining debt on repossessed property if the vehicle or item has already been sold. If the sale of the repossessed item did not cover the full amount owed, the remaining debt, known as a deficiency balance, can be included in your Chapter 13 plan. This may result in a reduced payment or a complete discharge of the deficiency balance by the end of the repayment period.

At The Law Office of Donald L. Bell, we will help you explore your options for recovering repossessed property or addressing deficiency balances through Chapter 13 bankruptcy.

Addressing Other Types of Debt in Chapter 13 Bankruptcy

Chapter 13 bankruptcy can address multiple other debts, including:

• Unsecured debts: A Chapter 13 repayment plan can include medical bills, credit card balances, personal loans, and other unsecured debts. You may only have to pay a portion of these debts, and the remaining balances will be discharged at the end of the plan.
• Secured debts: Chapter 13 allows you to catch up on certain secured debts and continue making ongoing payments. In some cases, you may also be able to reduce the balance owed on secured debts if the collateral is worth less than the amount owed. This is known as a "cramdown," it it may be possible in cases where the value of a vehicle or other property has depreciated.
• Priority debts: Certain debts, like tax debts and child support, take priority over other debts, and they must be paid in full through the repayment plan. Chapter 13 provides a structured way to manage these obligations.

At The Law Office of Donald L. Bell, we can help you address all of your debts through Chapter 13 bankruptcy. We will work with you to establish a repayment plan that will be manageable while also helping you meet all of the court's requirements.

Contact Our Rockville, Maryland Chapter 13 Bankruptcy Attorney

If you want to explore how Chapter 13 bankruptcy can help you protect your home, recover repossessed property, and address other financial challenges, The Law Office of Donald L. Bell is ready to assist you. Set up a free consultation today by contacting us at 301-614-0535.

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