Chapter 13 Bankruptcy - Stop Foreclosure Now & Save Your Home
Chapter 13 bankruptcy can stop the foreclosure of your home immediately and offer
you the opportunity to catch up on your mortgage payments, remove your second mortgage, and discharge your unsecured debt. How can Chapter 13 bankruptcy achieve this?
When you file for bankruptcy an immediate stay is put in place which prevents your home from being foreclosed without the permission of the bankruptcy court. Chapter 13 stops the foreclosure process immediately and allows you to propose to the court a plan to repay any past due amounts on your mortgage through a monthly payment plan of 36 to 60 months. If you are behind on your real estate taxes or HOA fees, Chapter 13 also allows you to setup a payment plan to repay back the arrears on your taxes and HOA fees.
If your home is underwater and you have a 2nd or even 3rd mortgage, you may be able to remove these mortgages from your home in a Chapter 13 bankruptcy. When your second and third mortgage are stripped off your home, they are treated as unsecured debt in a Chapter 13 case. Your second and third mortgage will be repaid the same percentage as your other unsecured creditors.
Chapter 13 bankruptcy allows you to consolidate all of your unsecured debt and make one monthly payment that is divided to your unsecured creditors. In the majority of cases, you will only repay a small percentage of your total unsecured debt. The unsecured debt that is not repaid in your Chapter 13 plan, will be discharged after your complete your Chapter 13 repayment plan.
Bankruptcy can work to stop the foreclosure of your home and put you in control of your finances. Through a Chapter 13 repayment plan, you can reorganize your debt into a feasible and controllable monthly payment.