Many times, people begin to look into bankruptcy only when they realize that they could lose their homes. When it’s only creditors calling about medical bills or credit card debts, it may not seem like there is much to lose. However, when it’s your home on the line, the reality of the situation may finally set in.
The good news is that Chapter 13 bankruptcy is a good way to protect your home from foreclosure. With a Chapter 13 bankruptcy, the goal is for you to be able to pay back a portion of your debts in monthly payments. Over time, with these payments in place, you may be able to cure delinquent mortgage payments.
Additionally, going into bankruptcy can help you stop foreclosure proceedings, protecting your home and giving you more time to find a solution to your financial problems. In some cases, you may be able to extend your mortgage payments over the life of the Chapter 13 plan, reducing your mortgage payments overall.
Remember, if you do go into Chapter 13 bankruptcy to protect your home, you will still need to make your remaining mortgage payments on time. If you miss them, then you could be held liable for what you owe.
Who qualifies for Chapter 13 bankruptcy?
As long as an individual’s unsecured debts are under $394,725 and they have secured debts lower than $1,184,200, then they will be able to qualify for Chapter 13 bankruptcy. It’s a good idea to talk to your attorney about if you qualify, since those amounts may change with the consumer index’s fluctuations.