Chapter 13 Bankruptcy

Saving your home from foreclosure is a very real possibility, even if your income is small and fixed.  But for many homeowners battling foreclosure with Chapter 13 bankruptcy, maintaining payments and keeping their home can still be a struggle a recent study revealed.

Foreclosure Listing Service in Addison analyzed post-bankruptcy cases of homeowners in 60 Texas counties. It found that in 2009, $2.28 billion worth of real estate was affected by a bankruptcy filing, an increase of 26 percent over 2008’s dollar volume of $1.92 billion.

The study reviewed cases in bankruptcy courts in Fort Worth, Dallas, Houston, Sherman, Austin and San Antonio. In 2009, 12,170 properties were affected, the report said, up 9 percent from 11,171 properties in 2008.

In those cases, the homeowner did not comply with a mortgage payment schedule set up by a court trustee… As a result, the property loses bankruptcy protection.

If you want to maintain your fresh financial start and save your home from foreclosure, you must comply with the repayment schedule set in place by the Chapter 13 bankruptcy trustee.  This is critical! If you fail to make payments to your bankruptcy trustee your bankruptcy case may be closed and your lender can then file foreclosure.  Remember, if your financial situation worsens during your Chapter 13 bankruptcy case, you may be able to get your payment schedule adjusted or even convert your Chapter 13 bankruptcy to a Chapter 7 bankruptcy and discharge your debt.  But ignoring your bankruptcy and missing payments will destroy the second chance that bankruptcy is giving you.  Please speak to your bankruptcy attorney about any difficulties you may be facing that will impact your ability to pay your bankruptcy trustee.