Compared to Chapter 7, Chapter 13 offers ways to protect your house. But you’re going to have to show that you’ve got enough money to:
You don’t lose property in Chapter 13, it’s as long as you can afford to keep it. The State shall specify the form that may be covered by the filers of land, including home equity. Chapter 13 is also an excellent option for people whose work or source of income has been lost for a while, defaulting on their mortgage, and now returning to full payment. In the declaration under Chapter 13, all defaults, commitments, and penalties will be settled in a 3-5 year interest-free scheme. There is no interest in a secret. No interest whatsoever. If you default on your $6,000 mortgage, you will earn around $100 a month in arrears for five years.
Sanctions and penalties will also increase the amount due but can be paid without interest. In any case, Chapter 13 Insolvency allows many families to preserve their homes long after they stop believing that this is possible.
If you want to keep your house in place, you need to stay up to date with your mortgage in Chapter 13. You will pay the mortgage lender directly in dozens of Chapter 13 bankruptcies.
In some instances, though, the court and Chapter 13 trustee appointed to handle your case will compel you to make mortgage payments under your Chapter 13 plan especially if you owe arrears when you file. Each month, the trustee pays your creditor. Bear in mind that the trustee earns a percentage of all the plan funds paid out and you contribute the sum to the trustee.
If you are not allowed to do so when you file for Chapter 13, a statutory default order covering most creditors prohibits foreclosure. The lender would not be permitted to foreclose if you were up to date with the mortgage payments and made up the arrears under Chapter 13—and you were able to pay for unexempt equity. You’re going to be able to keep your house in place.
For information on foreclosure defense call us at (877) 399 2995. We offer litigation document review support, mortgage audit reports, securitization audit reports, affidavit of expert witness notarized, and more.