Elkridge, MD Foreclosure Defense Attorney

Skilled Foreclosure Defense Lawyer for Homeowners in Elkridge

When you become inundated with debts as a homeowner, you may struggle to keep up with your mortgage obligations, which can eventually lead to the bank or lender initiating foreclosure proceedings. In situations like these, filing for bankruptcy can potentially allow you to keep your home and reassert control over your finances. With the help of an Elkridge foreclosure defense attorney, you can explore your options to catch up on your mortgage.

At The Law Office of Donald L. Bell, we provide homeowners with one-on-one legal support for issues of bankruptcy. Our firm will take the time to understand your financial situation so we can develop a repayment plan that is within your means, keeping your future in mind.

What Type of Bankruptcy Is Best for Homeowners?

Homeowners in Elkridge, Maryland, face difficult choices when debts accumulate from credit cards, personal loans, and medical expenses. Chapter 7 liquidates assets, but Chapter 13 allows wage earners to reorganize secured and unsecured debts into a single plan. It provides a flexible framework to repay mortgage arrears while handling other financial obligations, preserving homeowner rights.

Under Chapter 13, debtors propose a repayment plan based on disposable income, ensuring mortgage payments and other secured debts remain current. This chapter suits those with steady wages who seek to preserve their home and avoid foreclosure. Eligibility depends on income limits and debt ceilings set by federal law.

Chapter 13 permits catch-up payments on past due mortgage balances and other priority debts over three to five years through a court-supervised schedule. Upon successful completion of the plan, any remaining eligible unsecured debts are discharged under the court's order.

How a Repayment Plan Can Help With Your Mortgage

A Chapter 13 repayment plan outlines how a homeowner will address mortgage arrears alongside regular mortgage payments. It divides missed payments into manageable installments over the plan's duration, easing the burden on household budgets. This organized approach can stop pending foreclosure sales and prevent additional fees.

By combining mortgage catch-up payments with ongoing obligations, the plan restores home equity and safeguards homeowner rights. Creditors receive payments through a court-appointed trustee, which prevents them from pursuing separate remedies or holding liens outside the plan. The pooled payment system simplifies overall financial management and reduces stress for debtors.

For many Elkridge residents facing sudden hardship, the predictability of a repayment plan offers stability and allows for clear budgeting during financial hardship. It also enables modification of other secured debts under the same legal framework. Maintaining steady payments under the plan helps rebuild credit profiles and improve future borrowing prospects.

Can an Automatic Stay Stop Foreclosure Proceedings?

When a homeowner files for Chapter 13, the bankruptcy court issues an automatic stay that halts most foreclosure actions immediately, including scheduled sales. This injunction stops foreclosure sales, creditor phone calls, garnishments, and pending collection lawsuits. The main benefit of the automatic stay is the immediate relief and breathing room it provides while the payment plan is implemented.

While the automatic stay freezes foreclosure proceedings, it does not eliminate the mortgage debt or reverse existing arrears owed to the lender. A mortgage holder may seek relief from the stay if a debtor fails to make adequate protection payments or lacks equity. Homeowners should work closely with a qualified bankruptcy attorney to respond to such motions effectively, preserving the stay's protective benefits.

Automatic stay protection in a Chapter 13 case can last throughout the plan's term, typically three to five years, as long as debtors remain current on their payment obligations. This extended shield often gives homeowners the time needed to stabilize their finances and eventually retain their homes. Adhering to court requirements ensures the stay remains in effect until plan completion.

Contact an Elkridge, Maryland Foreclosure Defense Lawyer Today

If you are worried about losing your home due to mortgage arrears, reach out to The Law Office of Donald L. Bell today. We offer free consultations for consumer bankruptcy cases. You can reach us at 301-614-0535 or by contacting our Elkridge foreclosure defense attorney.