Silver Spring Chapter 13 Bankruptcy Attorney

Bankruptcy Lawyer Assisting With Chapter 13 Cases in Silver Spring, MD

For people struggling with debt but who want to keep their property and repay their creditors over time, Chapter 13 bankruptcy offers a structured path toward financial recovery. Unlike Chapter 7, which may require the liquidation of certain assets to eliminate unsecured debts, Chapter 13 will create a repayment plan in which a person will make payments toward their debts while protecting their home, car, and other essential assets. At The Law Office of Donald L. Bell, we help residents of Silver Spring, Maryland navigate the complexities of Chapter 13 bankruptcy, providing the guidance needed to develop a workable plan and achieve financial stability.

Why Choose Chapter 13 Over Chapter 7 Bankruptcy?

While Chapter 7 bankruptcy allows unsecured debts to be discharged, it may not be the best option for everyone. Some of the key reasons why you may decide to file for Chapter 13 bankruptcy include:

• Protecting Property: One of the main benefits of Chapter 13 is the ability to keep your property, even if you are behind on payments. Chapter 13 allows you to catch up on secured debts, such as mortgage payments and car loans, through a repayment plan. This can prevent foreclosure or repossession, which may occur if you file for Chapter 7 and cannot pay off the arrears on these debts.
• Making Up for Missed Payments: Chapter 13 bankruptcy is designed for people with a regular income who need time to catch up on past-due debts. It provides a structured way to repay missed mortgage payments, car loans, and other secured debts over a three- to five-year period.
• Avoiding Liquidation of Assets: While Chapter 7 bankruptcy may require the liquidation of non-exempt assets to pay off creditors, Chapter 13 allows you to keep all of your property. This may be especially important if you have equity in your home or other valuable assets that may not be fully protected under Maryland's bankruptcy exemptions.
• Repaying Priority Debts: Chapter 13 bankruptcy allows you to prioritize certain debts, such as tax debts or child support payments, that cannot be discharged in Chapter 7. These debts can be repaid through your Chapter 13 plan without the risk of losing your assets.
• Income Thresholds: Some people do not qualify for Chapter 7 bankruptcy due to their income level. If your income is too high to pass the means test required for Chapter 7, Chapter 13 may be your best option for achieving debt relief.

At The Law Office of Donald L. Bell, we help you evaluate whether Chapter 13 is the right solution for your financial situation, and we will work with you to create a repayment plan that fits your budget and goals.

The Chapter 13 Bankruptcy Process

Filing for Chapter 13 bankruptcy involves several important steps. At The Law Office of Donald L. Bell, our attorney will guide you through each phase of the process, ensuring that all legal requirements are met and that your case proceeds smoothly.

1. Initial Consultation and Financial Assessment

The first step in filing for Chapter 13 bankruptcy is assessing your financial situation to determine if you are eligible and whether Chapter 13 is the best option for you. During your initial consultation, we will review your:

• Income and expenses
• Secured debts, such as mortgages and car loans
• Unsecured debts, such as credit card balances and medical bills
• Assets and liabilities

2. Filing the Bankruptcy Petition

We will prepare and file your petition for Chapter 13 bankruptcy with the court. Filing the petition will trigger an automatic stay that will require creditors to cease all collection actions, including foreclosure, repossession, wage garnishment, or lawsuits. At The Law Office of Donald L. Bell, we will handle the filing process to ensure that your petition is accurate and complete, providing you with the protection of the automatic stay as quickly as possible.

3. Developing a Repayment Plan

The heart of a Chapter 13 bankruptcy case is the repayment plan, which allows you to repay a portion of your debts over a few years. The plan is based on your disposable income and outlines how much you will pay toward your priority debts, secured debts, and unsecured debts. Our attorney will work with you to create a repayment plan that is affordable and realistic, ensuring that it meets the requirements of the court and allows you to maintain your home, vehicle, and other essential property.

4. Attending the Creditors' Meeting and Court Hearings

After filing your petition, you will attend a creditors' meeting (also called a 341 meeting), where the bankruptcy trustee will review your case and ask questions about your financial situation. Creditors may also attend, though it is uncommon for most creditors to raise objections in Chapter 13 cases. Our attorney will attend the creditors' meeting with you, ensuring that you will be able to answer any questions you are asked.

You may also need to attend a confirmation hearing, where the bankruptcy court will approve your repayment plan. We will represent you at this hearing and advocate for the confirmation of your plan if necessary.

5. Making Plan Payments

Once your repayment plan is confirmed, you will begin making monthly payments to the bankruptcy trustee, who will distribute the funds to your creditors. These payments will continue for the length of the plan, which is typically three to five years. During this time, creditors are prohibited from taking any collection actions against you, and as long as you comply with the plan, you can avoid foreclosure, repossession, and other creditor actions.

6. Discharge of Debts

At the end of your repayment plan, any remaining unsecured debts that were included in the plan will be discharged, meaning that they will be eliminated. These debts may include credit card balances, medical bills, and other unsecured debts that were not paid in full through the plan. Our attorney will help you complete the process successfully, ensuring that you receive the full benefits of the discharge.

Contact Our Silver Spring, MD Chapter 13 Bankruptcy Lawyer

If you want to explore how Chapter 13 bankruptcy can help you regain financial stability, The Law Office of Donald L. Bell is here to assist you. Contact our office today at 301-614-0535 to set up a free consultation.

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