Chapter 13 can save your home from foreclosure. By giving you more time to make up for your missed payments, with no interest or penalties, you can make your mortgage more affordable and reduce your overall debt load. If the house is still too much to handle, Chapter 13 will help delay your move-out date so you have time to get your life together.
Debt Repayment Plan
If you propose a feasible debt repayment plan, Chapter 13 will provide the protection you need to save your home. While sticking with a three to five year payment plan is difficult, the opportunity to get rid of all your unsecured debt, and repay debts like back taxes, mortgage arrears and child support in small interest free payments makes it all worthwhile. When you add to that the opportunity to pay reduced amounts for your vehicles and the opportunity to eliminate second mortgages, Chapter 13 is really a great way to go.
The Home Ownership Benefits of Chapter 13
Upon filing, the Federal Bankruptcy Court issues a stay that immediately stops a foreclosure process. The court order also bars all creditors, like your mortgage lender, from making an attempt to collect debts. If they want to get through to you, they have to go through the court first.
Once a judge approves a repayment plan, the house cannot be foreclosed as long as you continue making the payments required by the plan. If you want to protect your home and need help creating a debt repayment plan, give us a call today and we’ll get you on the path to financial freedom.