Owe More Than Your House is Worth?
Many homeowners can relate to having an underwater mortgage or owing more on their home than what it's worth. This can often make maintaining payments more difficult, not only on your home but on other financial obligations. If this is the case and you have more than one mortgage, Chapter 13 may be an option worth considering.
Chapter 13 bankruptcy restructures debt by setting up a repayment plan that usually lasts 3 to 5 years. This chapter is ideal for those who are behind on their mortgage payments and want to keep their home. This option is likely to be considered if you don't qualify for Chapter 7 but meet income qualifications. Some homeowners are not aware that bankruptcy may help you keep your home. Usually, a homeowner considers a short-sale or simply walking away from their home, letting the lender foreclose on the property.
The Advantages of Chapter 13 Bankruptcy
Chapter 13 can give you multiple advantages. If you have more than one mortgage it can eliminate or remove other mortgages, including liens on the property. As long as you complete your payment plan under bankruptcy laws, any liens against your property can be removed.
The repayment plan may include the amount you are behind on with your mortgage as well as other debts such as your car payment, medical bills , credit card bills and other obligations. You'll make a monthly payment toward your debt based on your income and agreement made with the Bankruptcy Trustee.
Filing Bankruptcy May Be Right For You
Since each situation is different, it is best to discuss the advantages of Chapter 13 and how they can work for you with a bankruptcy attorney. If you would like to see if Chapter 13 bankruptcy is right for you contact us and set up a free consultation.