Minnillo & Jenkins, CO. LPA
Call 513-723-1600
For A No-Pressure, Free Consultation

How Chapter 13 bankruptcy could save your home from foreclosure

The world can be terribly unforgiving. You work ten years to save up your cash so you can put a downpayment on your first home. Then you keep working so you can slowly pay off the mortgage. Twenty years later, you've got $100,000 of equity in your home and you're feeling great. Then, you lose your job and you can't pay your mortgage.

If you miss a few mortgage payments, your bank may decide to foreclose your property. Basically, no matter how much equity you have in the property, your bank can take it from you and you'll lose everything.

If you're facing foreclosure, or the possibility of getting behind on your mortgage payments, you need to act fast. There are a variety of strategies that might help you save your home, and Chapter 13 bankruptcy is one of them.

Chapter 13 bankruptcy and foreclosure

Chapter 13 bankruptcy involves reorganizing all if your debts to make payback realistic. A bankruptcy court supervises the creation of a debt payback plan that involves your commitment to paying a certain amount of money each month. This payback commitment will be based on what you can afford based on your expenses, income and your level of debt. A Chapter 13 payback period lasts either three or five years.

Once you have successfully completed the Chapter 13 payback period, and you have made all of your payments each month, the bankruptcy court will discharge any remaining debts covered by the bankruptcy. As such, you won't usually need to pay back all of the debt you owe, but rather just a portion of it.

Should you even try to keep your home?

If you're having trouble making your mortgage payments and facing the possibility of foreclosure, rather than filing for bankruptcy to try and keep your home, you might also want to consider whether keeping your residence is realistic. If you're not too far behind on payments, it might be a wiser choice to simply sell your home and buy a more affordable one. Ultimately, there are many questions you may want to think about -- and a lot of different solutions -- that could help you in your situation if you're facing the threat of foreclosure.

No Comments

Leave a comment
Comment Information
Email Us For A Response

How Can We Help You?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Contact us right now for a free bankruptcy consultation

NACBA - National Association of Consumer Bankruptcy Attorneys

Proud Member NACBA

We are proud members of the NACBA, a national organization dedicated to serving the rights of consumer debtors. Read More

Super Lawyers

Jenkins Named Super Lawyer!

Founding partner, Christian A. Jenkins, was selected by his peers and the media as a Super Lawyer. Read More

Cincinnati Office
2712 Observatory Avenue
Cincinnati, OH 45208

Phone: 513-723-1600
Cincinnati Law Office Map

Cincinnati Office
792 Eastgate South Dr
Suite 150
Cincinnati, OH 45245

Phone: 513-685-0612
Cincinnati Law Office Map

Fairfield Office
447 Nilles Rd
Suite 9
Fairfield, OH 45014

Phone: 513-795-0995
Fairfield Law Office Map

Covington Office
526 Philadelphia St.
Covington, KY 41011

Phone: 513-795-0995
Map & Directions