The short answer to “Can I save my home with Chapter 13 bankruptcy?” is often times, yes. Chapter 13 bankruptcy allows you as a homeowner to delay or stop a foreclosure, in addition to paying off the mortgage debt on your home. If you have fallen behind on your mortgage payments and can’t seem to catch up on the payments, you should consider a Chapter 13 bankruptcy. In a Chapter 13, you can add any unpaid arrearages to the total assets in your bankruptcy case which allows you to pay the past due amount over the course of the next 3-5 years.
The caveat to a Chapter 13 bankruptcy is the payment plan you will be set up on. In order to keep your home, you must have sufficient income to pay the monthly mortgage payments going forward. You will be expected to make payments on all the assets you wish to keep in a timely manner, or else your bankruptcy case could be discharged leaving you with all the debt to repay. Your bankruptcy attorney can explain further about how to use Chapter 13 bankruptcy to avoid foreclosure and keep your home.
Utilizing Chapter 13 bankruptcy is a tool mandated by the Federal Government to offer individuals relief from crushing debt. While it is available to most, it should be mentioned that this is a last ditch effort to save your home and should only be sought after you have tried everything else possible like working to renegotiate your mortgage directly with the lender, exploring mortgage modifications, and looking into refinancing your mortgage. If none of these options have worked and you are still behind, then it is time to call your Ohio bankruptcy lawyer to discuss your situation and see if Chapter 13 bankruptcy is right for you.