Help for a Chapter 13 & Mortgage

Bills.com > Manage Debt > Deal with Debt > Debt Relief Q&A > Help for a Chapter 13 & Mortgage
READER QUESTION

What are the mortgage relief options available to people in a Chapter 13?

Read full question
Bills.com Resident Expert
Dec 12, 2011
BILL'S ANSWER

Chapter 13 bankruptcy allows home owners who have fallen behind on their mortgage payments to include their delinquent mortgage payments in their bankruptcy filing, thus bringing their mortgage current and allowing them to repay the delinquency over a longer period of time.

Generally speaking, filing Chapter 13 bankruptcy can stop foreclosure proceedings and allow home owners who have fallen behind a fresh start with their mortgage payments. However, you should keep in mind that Chapter 13 bankruptcy involves making court-approved payments to repay your delinquent mortgage balance and your other debts; you will be required to make these payments in addition to your regular monthly mortgage payments if you want to keep your home. While a Chapter 13 can bring your mortgage current, it will not lower your mortgage payments or change any other terms of your mortgage agreement.

Very quickly, if you are struggling with other debts and want to see if you can save more through debt resolution, follow-this link for a no-cost, no-gimmick consultation with one of Bill's debt-relief partners.

Your monthly payment to the bankruptcy court will be based on your current income less allowable expenses as defined by the court. The court will set your payment amount, and you will be expected to make that payment every month; if you cannot make your Chapter 13 payments, the court will likely dismiss your case and your financial problems will begin anew. As I mentioned previously, you will also be required to pay your future mortgage payments on time if you wish to stay in your home. With the combination of their Chapter 13 payments and their mortgage payments, many consumers find Chapter 13 to be a difficult path to financial solvency. However, it can be a lifesaver for individuals who are facing foreclosure and do not have the cash necessary to bring their home loans current; you must carefully weigh the positives and the negatives of a bankruptcy filing before committing to a court administered repayment plan under Chapter 13.

If you are behind on your mortgage and facing foreclosure, a Chapter 13 bankruptcy may be the right solution for you. To determine whether or not filing for bankruptcy protection will help you, consult with a qualified bankruptcy attorney in your area. To find an attorney with experience in bankruptcy law, contact your state or county Bar Association’s attorney referral service and explain your needs. They should be able to put you in contact with an attorney who can review your options with you and explain whether filing bankruptcy is your right choice.

To learn more about bankruptcy, see the Bills.com bankruptcy information page. If you struggle with other debt problems and want a free debt consultation with one of Bill's approved debt help partners, enter your contact information on the Debt Help page.

I wish you the best of luck in resolving your financial difficulties and hope that the information I have provided helps you Find. Learn. Save.

Best,

Bill

Bills.com

VIDEO: Bankruptcy - What is Bankruptcy?

Comments (4)


Avatar
Bills.com
February 20, 2010
Give the market conditions today, and given that your ex-spouse has not refinanced, my guess is that her financial situation will not allow her to qualify for a loan on her own, or the property is worth less than the balance of the mortgage(s). Your filing for a Chapter 13 may remove your liability for the mortgage. Consult with an attorney in your state who can research the case law in your state to see what the results are for the owner of the property in this type of situation.
Avatar
James .
February 19, 2010
Ex wife kept house. Mortgage in both our names. Purchase money mortgage. I know i can file ch 7 to release myself of liability of the mortgage, but can i file ch 13 for it and not have payment plan of any type, just clear my liability of the mortgage?
Avatar
Bills.com
September 16, 2009
Because I do not know anything about the Web site you mentioned (beyond looking at its home page) I don't have anything positive or negative to say about the quality of its services, or lack thereof. I am not aware of any requirement for anyone to use an attorney when filing a document with a court. There are many books on do-it-yourself divorce, bankruptcy, creating a corporation, writing contracts, making a will, and so on. If you are interested in filing your own bankruptcy, I have always been impressed with the quality of the Nolo Press line of books. I don't recommend representing yourself in a bankruptcy filing, any more than I recommend setting the bones in your broken leg yourself. Yes, you can do both on your own, but will you do a better job than someone trained, licensed and experienced in those jobs? There's an old adage in law that comes to mind: "A person who defends himself has a fool for a client."
Avatar
Dorothy .
September 15, 2009
great info about chapter 13 bankruptcy. i got also an info from onlinebkassist.com that you can file chapter 13 bankruptcy without any attorneys fees, isn't it great?. do you know about this company?
Thanks for your feedback!
 
  • Articles
  • Ask Bill
Thank you for subscribing!