Chapter 13 is designed to put a stop to the foreclosure process even if it's already begun. Then, special tools available only in Chapter 13 are designed to help you pay back and get control of your past due mortgage debt.
Is this the right choice for you? Bankruptcy attorney Kevin Chern talks about how Chapter 13 works against foreclosure, and may help you decide on what is the best next step for you.
KEVIN CHERN, BANKRUPTCY LAWYER: Can Chapter 13 Bankruptcy Stop Foreclosure? Chapter 13 is often used by consumer debtors in a variety of situations.
For instance, if you're facing a foreclosure on your home, a Chapter 13 can immediately stop the foreclosure and allow you to repay the amount that you're behind on your mortgage over a 3-5 year payment plan, which is often easier than coming up with everything at once, which is what you might have to do to otherwise save your home.
Another situation is if you're behind on a car payment.
A chapter thirteen can freeze any repossession action against you and allow you to repay the entire outstanding balance of the note on your vehicle over a three to five year period with no interest.
In addition to that, any other types of debts - tax debts, student loans or other outstanding bills - can be frozen and sometimes be paid back at only a percentage on the dollar based on the amount of expendable income that you have available to pay towards the debt.
In other words, you may not have to pay a hundred percent of that back under chapter thirteen repayment plan.
Really, the main requirement is that you're working. You need some income - either through fixed income, whether it's social security or disability, or through active employment - in order to make a payment towards your debt.
You may very well qualify, and a qualified bankruptcy attorney in your area may be able to give you the information you need to determine whether or not you can file chapter 13.
If you'd like to do so, fill out the form on this page or call the toll free number and we'll have you on the phone with an attorney in your area who can give you some information about whether or not you qualify for chapter 13.
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