Using Chapter 13 Bankruptcy to Keep Your Home for Good
If you’re someone who struggles regularly to pay your mortgage, you might be wondering, “Can I save my home permanently with Chapter 13 bankruptcy?”
Chapter 13 offers some big advantages, including the ability to stop foreclosure and help you get back on track. So here’s what you need to know about keeping your home and what it takes to stay there for good.
Understanding Chapter 13 Bankruptcy
To discuss what Chapter 13 bankruptcy can and can’t do, it’s helpful to know how it works.
Chapter 13 sets up a structured debt repayment plan that allows homeowners to catch up on mortgage debt and keep their homes.
It’s often referred to as the “wage earner’s plan,” because it was designed for people with some income. Working with your attorney and the courts, you create a plan based on your personal finances and ability to pay. Then over three to five years, you pay into this plan every month.
At the end of paying off your plan – no matter how much of the original debt you actually paid – your debts are considered settled.
How Chapter 13 Saves Your Home
Chapter 13 can automatically stop foreclosure. Right after filing, the courts impose something called an automatic stay. This requires creditors to stop any foreclosure proceedings and can provide you with immediate, if short-term, relief.
Then, through your repayment plan, you catch up on missed mortgage payments gradually (based on how much the court determines you can afford). This spreads your debt payment out over the duration of the plan and makes the payment amount low enough for your situation.
Once you complete the Chapter 13 repayment plan, you will emerge from bankruptcy with a current mortgage. Not only will you retain your home; you’ll also have a fresh start and a real chance for financial recovery.
A Permanent Solution to Foreclosure
However, even with something as powerful as Chapter 13, you do have certain responsibilities. First, you need to make every single payment into your Chapter 13 plan. This is a crucial step for keeping your home. If you miss a payment, you need to work with your attorney and the courts so you don’t end up at risk of foreclosure all over again.
Secondly, you also need to make your mortgage payments. Even after a Chapter 13, when you leave caught up on your mortgage, you’ll still have regular mortgage payments. If you can do that, then by using the powerful tool of Chapter 13, you should be able to keep your home for good.
An Attorney to Help You Save Your Home with Chapter 13 Bankruptcy
When considering Chapter 13 bankruptcy in Memphis, you need experienced legal representation by your side. If you’re at the point of asking, “Can I save my home permanently with Chapter 13 bankruptcy?,” the stakes are already too high to trust your case to just anyone.
Our award-winning Memphis Chapter 13 bankruptcy lawyers offer unparalleled expertise. We’re totally dedicated to making sure you keep your home and get a fresh start.
Together we work tirelessly to tailor your Chapter 13 repayment plan to your unique circumstances. From halting the foreclosure to guiding you through the repayment process, we’ll be by your side as you achieve a brighter financial future.
We offer a free consultation to help you get started, where we can answer any questions, no strings attached. To schedule with us, just call 901-327-2100 or contact us online today.