Search Site
Menu

How Chapter 13 Can Save Your Home from Mortgage Foreclosure

Foreclosure of your family home can be devastating. If you’re struggling to keep up with mortgage payments or the lender sent you a foreclosure notice, you may be able to save your home by filing a petition for Chapter 13 bankruptcy.

How Chapter 13 Can Save Your Home from Mortgage ForeclosureCritically, once a Chapter 13 petition has been filed, an automatic stay goes into effect, providing a crucial safeguard for the debtor. Not only does it prevent creditors — including mortgage holders — from attempting to collect any debts from you, but it also halts any foreclosure proceedings initiated by a mortgage lender. As long as your house hasn’t already been sold at a foreclosure sale, Chapter 13 can provide you with the opportunity to cure the default on your mortgage.

While a Chapter 7 bankruptcy can provide temporary relief from foreclosure by allowing you to remain in the home throughout the duration of the bankruptcy case, this remedy may not be your best option. The only way you’ll be able to keep the property indefinitely is to become current on all mortgage payments. In most cases, this is not feasible, unless you are approved for a loan modification.

A Chapter 13 bankruptcy, on the other hand, offers a long-term solution by allowing you to enter into a repayment plan to satisfy your mortgage arrears. Chapter 13 bankruptcy can be beneficial for those who earn a steady income but are overwhelmed with burdensome debt. Unlike Chapter 7 — which discharges many types of debt entirely — Chapter 13 allows debtors to restructure their debt by entering into a repayment plan that lasts three to five years.

In the Chapter 13 repayment plan, the debtor must outline how they will make payment for the mortgage arrears. However, it’s important to understand that during the time you’re repaying the past due mortgage amounts, you will also need to make current payments to be able to remain in the home after your bankruptcy case has concluded. Failure to keep up with your mortgage schedule could result in foreclosure — even if you’re repaying the past-due mortgage amounts under the repayment plan.

With offices conveniently located in Athens, Douglasville, Gainesville, Lawrenceville, Marietta, and Scottdale, Jeff Field & Associates represents debtors in Chapter 13 bankruptcy proceedings throughout Atlanta and the surrounding area. To schedule a consultation, call 404-381-1278 or contact us online.

More on this topic:


How Chapter 13 Can Save Your Home from Mortgage Foreclosure

Using Chapter 13 Bankruptcy as a Remedy for Mortgage Foreclosure

I Just Went Through a Foreclosure! Do I Still Owe the Mortgage Company and Property Taxes?

Using Chapter 13 Lien Stripping to Reduce Secured Debt

Leave a Reply

Your email address will not be published. Required fields are marked *

Videos
Our Attorneys
Client Reviews
  • google
    5.0/5.0

    I have done business in the past with Jeff Field and Assoc. and highly recommend them to my family, friends and colleagues. I worked closely with Casey and Chris whom made the stressful process so much easier. I was able to rectify my issue in less t...

    Read more

    Hema Juman

  • lawyers
    5.0/5.0

    I chose Jeff Fields and Associates because of the positive reviews I read. My experience with them was very nice. Everyone I had the pleasure of working with was very professional and knowledgeable. Ms. Mai and Chase Butler were very quick too respon...

    Read more

    Client

  • lawyers
    5.0/5.0

    One of the best groups of people I’ve ever worked with. Fantastic company with employees who actually care about your personal experience during an awkward time. I hardly write reviews but wanted to let others know where to go if they happen to eve...

    Read more

    Client

  • lawyers
    5.0/5.0

    Working with Jeff Field & Associates was a pleasure. My attorney and case manager were awesome. They made this journey as smooth as possible and overall just very professional. I will recommend their services to anyone who is seeking help in gettin...

    Read more

    Client

  • google
    5.0/5.0

    This was by far a seem less process. Everyone was extremely helpful and a joy to work with. They answered all of my questions and followed up quickly when needed. Needless to say, I would definitely recommend their services to all of my friends and f...

    Read more

    Jason Barnes

See all reviews
Contact us

Please fill out the form below and one of our attorneys will contact you.

Quick Contact Form