Photo by Matt Bowden on Unsplash. The mortgage forbearance extension can be helpful. But the whole situation is extremely stressful. Bankruptcy can help in many ways. Wild Foreclosure Moratorium Rollercoaster Ride If your mortgage has qualified for the federal mortgage foreclosure moratorium, the last 11 months have been a wild ride. Since the original 60-day foreclosure moratorium in March 2020, … Read More
If you need more time to sell your home, you can usually get more time than under Chapter 7. Can maybe even delay selling for several years. Our last blog post was about the relatively long time Chapter 13 gives you to catch up on your mortgage. Besides the 3 to 5 years it gives you, Chapter 13 also … Read More
If you’ve fallen behind on your mortgage, it’s very hard to catch up. It may even seem impossible. Chapter 13 makes it possible.
Chapter 13 is very different from Chapter 7 “straight bankruptcy.” It buys you time to deal effectively with your special debts.
Here’s an example of how Chapter 13 can allow you to hold onto your home but then change your mind about it later.
If you are behind on property taxes on your home, Chapter 7 often doesn’t give you enough time to catch up. But Chapter 13 likely would.
Chapter 13 gives you much more time to catch up on your unpaid mortgage payments. That can be reason enough choose this option.
Whether you’re about to fall behind on your mortgage or have already done so, a forbearance agreement avoids foreclosure while you catch up.
Bankruptcy helps with your property taxes either by writing off your other debts or by buying you more time to catch up.
Bankruptcy can buy you a few more months or even several years, so you can sell your home when you’re financially and personally ready.
Don’t let a creditor get a judgment against you. File a bankruptcy case before that can happen.
Decisions that seem to make sense at the time can end up being against your best interest. Hereâs what to look out for.
Either Chapter 7 or 13 will stop a foreclosure, even if your lender unintentionally or purposely proceeds with the foreclosure sale.
Here are 5 additional tools that come with Chapter 13, each one neatly solving a different challenge to your home.
If you’re behind on your home mortgage, when would a Chapter 7 regular bankruptcy be enough vs. needing the benefits of a Chapter 13 plan?
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