Both Chapter 13 and Chapter 7 bankruptcy can help prevent home foreclosure. A Chapter 7 bankruptcy eliminates your unsecured debts (which can help free up your income to put toward a mortgage or real estate payment) and Chapter 13 restructures your debt into a manageable monthly payment to help you pay off your debt over a period of 3-5 years. Each type of personal bankruptcy can help you prevent foreclosing on your home or other real estate property.
Foreclosure has a process of it’s own and when you're faced with a home foreclosure notice, it can really stress you out. It really takes a toll on your entire life and family. We understand what you’re going through and want to provide you with information to avoid foreclosure from taking your home, so you can get on with your life.
Can Chapter 13 Bankruptcy Save Your Home?
If you’ve fallen behind on payments and your mortgage is in arrears, meaning late, unpaid payments, then Chapter 13 allows you to create a plan to break those late payments into manageable monthly payments over a 3-5 year period while giving you the ability to stay current and make on-time payments on your mortgage. If, after your repayment period under Chapter 13, you still have outstanding unsecured debt it gets discharged and the only debt you’ll have is for your home and other secured debt. This will make your ability to pay your mortgage on time much more likely and a huge benefit of Chapter 13 bankruptcy.
Note: You will need at least enough income to pay your current mortgage payments on time each month throughout your bankruptcy while making small payments to pay off the arrearage. If you make all arranged payments on time throughout your bankruptcy you’ll avoid foreclosure.
Save your home with Chapter 13 bankruptcy
Save your home with Chapter 7 bankruptcy