Filing bankruptcy will halt foreclosure. Chapter 13 bankruptcy, provides powerful tools for resolving several common problems for mortgage borrowers. A chapter 13 plan can get you out of default and allow you to keep your home. Mortgage distress has long been among the leading reasons individuals file for bankruptcy. Many Americans have turned to bankruptcy to save their home.
Chapter 13 bankruptcy provides powerful tools for debtors to stop foreclosure and save their home. Notably, chapter 13 allows debtors to repay a past-due balance on a mortgage over time, up to five years. Filing bankruptcy provides an automatic stay that halts foreclosure during the bankruptcy case, unless the court grants permission for the creditor to proceed.
We discuss Foreclosure in more detail on the following pages:
Bankruptcy to Stop Foreclosure and Fix Mortgage Issues
Behind on the Mortgage: The Math of a Chapter 13 Cure
A significant power of chapter 13 bankruptcy is the ability to propose a plan that cures a default associated with a long-term debt, i.e. to catch up a delinquent mortgage so that it is once again current. Due to this, chapter 13 is an option frequently considered by families who have fallen behind on their home mortgage payments. Understanding the basics of how a cure payment is calculated is important for appreciating the value and constraints of chapter 13.
Chapter 13 Bankruptcy and the North Carolina Foreclosure Process
One common use of chapter 13 bankruptcy is prevent foreclosure of a home. Chapter 13 allows the owner/borrower to bring the loan current over a period of years and keep his or her house. When does one invoke the power of chapter 13 to prevent foreclosure?
Choices When Behind on Mortgage Payments
The house payment is the single largest expense for many families. When finances get tight and bills start adding up, many people get behind on their mortgage payment. In North Carolina, recent statistics put about 3-4% of home mortgage loans at least 90 days past due. In this post, I briefly summarize the major options for a homeowner who is behind on their payments, including bankruptcy approaches.