${site.data.firmName}${SEMFirmNameAlt}
Practice Areas

3 ways Chapter 13 bankruptcy can save your home

If you are in financial turmoil and declaring Chapter 13 bankruptcy, you might be worried about what will happen to your home. The good news is that Chapter 13 bankruptcy gives you tools to delay or prevent foreclosure and modify your mortgage. Just because you are behind on your mortgage payments does not mean all hope is lost. Saving your home is possible.

With the right help, you can get back on track financially. Learn the three ways Chapter 13 bankruptcy can save your home.

1. Repayment plan

Declaring bankruptcy under Chapter 13 gives you the opportunity to pay a partial or full amount of your missed payments through a repayment plan. These plans usually last three to five years depending on your financial situation. To succeed with a repayment plan, you will need income substantial enough to make your current payment, basic expenses and the arrearage.

2. Delaying or preventing foreclosure

As soon as you submit a Chapter 13 bankruptcy petition, foreclosure proceedings must cease until a repayment plan is approved, because of the automatic stay. If the plan includes a way to pay the arrearage, your lender is unable to proceed with the foreclosure, assuming you make your payments.

3. Modifying your loan

Not all mortgages can be modified under Chapter 13, but you may be able to modify your loan if your owed amount is more than the value of your home. For example, if your loan is $200,000 and the value of your property is $100,000, $200,000 would remain secured and the additional $100,000 would be added as an unsecured debt.

As you can see, your home does not have to go under even if you are struggling to make payments. Consult a bankruptcy attorney to see if Chapter 13 is right for you.

No Comments

Leave a comment
Comment Information

It's Time To Contact Us For A Free Consultation. Se habla español.

Request a free meeting with an expereienced lawyer now »

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Visit our offices / follow us

West Palm Beach Office
2001 Palm Beach Lakes Blvd Suite 410
West Palm Beach, FL 33409

Phone: 561-328-0726
Fax: 561-689-6767
West Palm Beach Law Office Map

Port St. Lucie Office
201 SW Port St. Lucie Blvd, Executive Suite #2
Executive Suite #2
Port St. Lucie, FL 34984

Phone: 772-344-9090
Fax: 772-236-5482
Port St. Lucie Law Office Map

back to top