Owning a home is a major part of living the American dream. Unfortunately, for many Americans, foreclosure is an imminent threat. In fact, because they are behind on mortgage or rent payments, as many as 35% of Americans may lose their homes in the coming months.
Whether you love your house or simply want to remain in it, you may be able to save the roof over your head by exploring Chapter 13 bankruptcy protection. With this type of bankruptcy, you negotiate a repayment plan to help you catch up on missed mortgage payments.
Stop collections activities
If you are more than a month or two behind on your mortgage payments, you may feel a sense of dread every time the phone rings or the mail arrives. When you file for Chapter 13 bankruptcy protection, though, you benefit from an automatic stay of collections activities. During this stay, which may last for the duration of your repayment plan, your creditors may not harass you or otherwise try to secure payment.
Keep your home
During the Chapter 13 bankruptcy process, you pay off the arrearage on your mortgage. Provided you have enough income to make up lost payments and pay your mortgage during your repayment period, you can probably keep your home. A Chapter 13 filing may also allow you to do away with the second or third mortgages you have on the property.
Chapter 13 bankruptcy has many requirements you must satisfy to keep your home. Still, if the thought of losing the roof over your head makes you shudder, exploring the ins and outs of Chapter 13 bankruptcy protection probably makes logical sense.