Lanham, Maryland Foreclosure Defense Lawyer

Trusted Foreclosure Defense Attorney Representing Clients in Lanham

When you fall behind on mortgage payments, your home lender may initiate foreclosure proceedings, which can lead to the loss of your home. Getting current on your mortgage in a short amount of time may seem impossible, but you have options to protect your home. A Lanham, MD foreclosure defense lawyer can help you file for bankruptcy and address outstanding sources of debt.

At The Law Office of Donald L. Bell, we have helped numerous clients through difficult financial situations, drawing on over 20 years of legal experience. We will help you plan for the long term, working out a personalized repayment plan so that you can get up to date on your dues.

Why Bankruptcy?

The word "bankruptcy" often carries a stigma—many view it as an admission of failure or a sign of irresponsibility. In truth, bankruptcy is a federal tool designed to help individuals regain control of their finances. To address outstanding debts, consumers usually turn to Chapter 7 bankruptcy or Chapter 13 bankruptcy. Under Chapter 7, a trustee may liquidate nonexempt assets to satisfy creditor claims and then discharge most remaining unsecured debts within months. While Chapter 7 offers a rapid resolution of debts, it provides no ongoing mechanism to halt foreclosure once the case concludes and may force the sale of property you wish to keep.

Chapter 13, on the other hand, focuses on reorganization rather than liquidation. Through a court-approved repayment plan that spans three to five years, you can cure past-due mortgage arrearages and address other debts while maintaining ownership of your home.

What Does an Automatic Stay Do?

One of the most immediate benefits of filing for bankruptcy is the automatic stay. From the moment the Chapter 13 petition is filed, the automatic stay blocks most collection actions against the debtor. Mortgage lenders must cease future foreclosure proceedings, suspend scheduled sales, and refrain from filing new lawsuits to recover missed payments. This injunction gives homeowners a critical window to organize their finances without the pressure of rapidly approaching deadlines.

The automatic stay applies broadly to creditors, preventing garnishment of wages, repossession of vehicles, and intrusive communications demanding payment. Although a lender may seek relief from the stay if it can demonstrate lack of equity in the property or failure to make post-petition mortgage payments, the stay remains in effect until the court rules otherwise. During this period, the homeowner is positioned to propose and confirm a Chapter 13 plan, negotiate mortgage modifications, and pursue other remedies without the specter of immediate foreclosure.

Benefits of Chapter 13 Bankruptcy for Homeowners

Chapter 13 bankruptcy provides advantages that extend well beyond an automatic halt to foreclosure proceedings. One of the most valuable benefits is the discharge of eligible unsecured debts at the conclusion of the repayment plan. By eliminating obligations such as credit card balances and personal loans, homeowners can reduce their overall debt burden and direct more resources toward sustaining mortgage payments in the future.

Another significant advantage is the possibility of removing a second lien on the property. If the fair market value of a home is less than or equal to the amount owed on the first mortgage, Chapter 13 may allow the debtor to "strip" or void a wholly unsecured second lien. Eliminating that secondary claim can lower monthly costs and safeguard equity.

Finally, Chapter 13 can serve as leverage to pursue a mortgage modification. While the automatic stay is in place and the plan remains pending, a homeowner gains additional time and negotiating power to request changes in loan terms. Our firm can help you negotiate with the lender for a modification, making sure that your interests are protected.

Contact a Lanham Foreclosure Defense Attorney Today

Call 301-614-0535 or contact our Lanham, MD foreclosure defense attorney at The Law Office of Donald L. Bell to discuss how Chapter 13 bankruptcy can protect your home and set you on the path to financial stability. We offer free consultations in consumer cases.