When a Debtor Files Chapter 13 Bankruptcy
When a debtor files Chapter 13 bankruptcy , they need to figure out how much they will pay every month for the next five years if they want to keep their home. But figuring out that bottom-line figure requires the bankruptcy debtor to factor in more than the mortgage payment. Debtors must also think about the costs of delinquent payments. Late fees and interest must both be accounted for when calculating your Chapter 13 bankruptcy repayment amount. If the home went into foreclosure , even if it never went to auction, the debtor may need to pay for appraisals, drive by inspections, attorney fees, service charges and title charges.
Think About the Feasibility of Your Repayment Plan
Remember, the fees and charges listed above are in addition to the regular monthly mortgage that Chapter 13 bankruptcy debtors must pay if they want to remain in their home. But besides the actual costs of the mortgage, Chapter 13 bankruptcy debtors must really think about the feasibility of their repayment plan. Can you really afford to pay the monthly dollar amount required to keep your home? Is the home really worth keeping? If the home is falling apart or has already lost significant value with no chances of removing that equity, then keeping the home in Chapter 13 bankruptcy may not be a wise decision.
Make Sure That You Are Securely Employed
Chapter 13 bankruptcy debtors need to make sure that they are securely employed when they embark on a repayment plan to keep their home especially if they are reaffirming the mortgage. If the debtor is unable to make the payments after a few months or years in the Chapter 13 bankruptcy, they may face the dismissal of their case and foreclosure.