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Chapter 13 Bankruptcy Filing

If I’m Behind on My Mortgage Payments Can Bankruptcy Help Me Catch Up? Chapter 13

Things happen and you can easily fall behind on your mortgage payments. If you are wondering if Chapter 13 bankruptcy will help you catch up, then the answer is ‘yes’. Chapter 13 bankruptcy can help you save your home and get caught up on your missed mortgage payments.

Chapter 13 Saves Your Home

If your home is facing a foreclosure sale, then there are steps you can take to save it. Filing a Chapter 13 will halt a foreclosure sale immediately and give you the time that you need to save your home.

Save Your Home with a Chapter 13 Stay Order

As soon as you file for a Chapter 13 bankruptcy, an automatic stay order is placed in effect which prohibits the mortgage lender from continuing with the sale of your home or trying to collect the debt. The stay will remain in effect to save your house if the Chapter 13 repayment plan gains approval and you start to make your payments on time to the Chapter 13 trustee. You can then continue making your mortgage payments each month.

Resumption of Foreclosure Proceedings

If you pay your mortgage payments on time through the Chapter 13 repayment plan, then your lender cannot foreclose on your home. However, if you are late with your payments or you miss a payment then the automatic stay will be lifted, and your lender can again resume all foreclosure proceedings.

Chapter 13 Reorganizes

Chapter 13 is known as reorganization bankruptcy because it reorganizes debt so you can repay your bills via a repayment plan. Unlike Chapter 7, your debt is not wiped clean. Instead, you are given the opportunity to catch up on your missed mortgage payments so you can save your home. The goal of filing  a Chapter 13 bankruptcy is to reorganize things so you can use a repayment plan to save your home.

Length of Chapter 13

Your Chapter 13 plan will be set for three to five years. It is not allowed to exceed five years. You will have the opportunity to pay back a small portion of your delinquent payments each month until you are caught up. During Chapter 13, you’ll need to continue paying your mortgage payments and stay current. When the plan is complete, you will be all caught up on your mortgage payments

Eliminate Smaller Loans and Liens

With a Chapter 13 bankruptcy, you will not lose your home. You can keep your house, stop a foreclosure, and get caught up on back mortgage payments. Also, you are given the chance to get rid of liens such as a second or third mortgage or a home equity line of credit. The process will help you lower your monthly payments significantly, so you get on top of the back payments and stay current.

Hardships happen unexpectedly. Many people face huge medical bills and rising unemployment. The last thing anyone wants to deal with is the loss of their home on top of a failing credit report and other financial difficulties. Luckily, with Chapter 13, you can save your home from foreclosure and get caught up on your missed mortgage payments.

Please contact Fair Fee Legal Services to learn more.

Fair Fee Legal Services
8665 South Eastern Avenue, Suite 101
Las Vegas, Nevada 89123