Every year, millions of American homeowners fall behind on their mortgage payments. When their banks and lenders begin to threaten to come after the property, homeowners are terrified that they could lose their home. An underwater mortgage due to missed mortgage payments can lead to foreclosure and harassing calls from debt collectors. Fortunately, bankruptcy is one powerful solution that can save your home from foreclosure. A Chapter 13 bankruptcy can help you get back on track. You can stay in your home while you decide the best way to go forward.
What Is a Chapter 13 Bankruptcy?
A Chapter 13 bankruptcy is a form of debt reorganization. It allows you to restructure your debts and keep your property. Chapter 13 can be a good option if you have the money to stay current on your payments but need help with a large amount of debt.
- Chapter 13 bankruptcy can help you:
- Get rid of your mortgage arrears
- Pay off your debt
- Reduce your monthly payments
- Keep your home
- Get rid of harassing calls from debt collectors
- Stop foreclosure
Keep Your Home in Chapter 13 Bankruptcy
To save your home in Chapter 13, you must make a plan to pay off your mortgage arrears. You must also pay back the remaining debt on your mortgage. This means that you must understand the amount of money you owe, how your mortgage works, and what your lender wants you to do. When you begin your Chapter 13 case, your attorney will help you draft a plan to make all of the required payments. This will include your regular mortgage payments and the payments that you must make to the court to pay off your arrears. The repayment plan will also include the amount of money that you must pay your unsecured creditors.
Contact an Attorney
Filing for bankruptcy is an important decision that can have far-reaching consequences. If you are facing foreclosure and want to keep your home, you can talk to a Citrus Heights bankruptcy attorney to find out if Chapter 13 bankruptcy is right for you.