Don’t qualify for Chapter 7? Still need relief from debt collection or debt? Trying to save your property from foreclosure?
For consumers with special circumstances a Chapter 13 filing may be the answer. Chapter 13 can be used to delay a foreclosure long enough to obtain a mortgage modification or allow a home owner to repay the delinquent mortgage monthly over a 5 year plan.
If you choose Chapter 13 Bankruptcy you agree to repay some portion of your debt. Using the protections of Chapter 13, you can prevent or delay foreclosure of your home.
In Chapter 13, you agree to a repayment plan. This repayment plan allows you to catch-up on any arrears or late payments you may have on your home. By agreeing to repay the arrears over a period of either 3 or 5 years, you may be able to divide up those payments to a level at which you can get caught up on your home.
Chapter 13 can also assist a home owner with seeking a mortgage modification. If you are working with your lender and are facing an imminent foreclosure date, filing a chapter 13 can give you the time you need to complete the process. Filing a chapter 13 during the mortgage modification process can also remove the stress and worry involved in trusting the lender to postpone the foreclosure date.
Is your home “underwater”? Do you owe more than it is worth? If your home has more than one “lien” against it – such as a second or third mortgage, home equity lines of credit, etc – Chapter 13 bankruptcy may allow you to ‘strip’ these liens from you home. Saving you money on repayment and freeing up your home to go back to earning equity again.
A Chapter 13 can also allow a debtor to remove involuntary liens (abstracts of judgment) from their property.
Let us help you get the best possible results for your situation.