File Chapter 13 Bankruptcy Online: Foreclosure

If you file a Chapter 13 bankruptcy online, your bankruptcy filing will not affect your mortgage, nor will you lose any property provided that you are still able to make your mortgage payments in full and on time.

If you are in dire financial distress and have received a notice of foreclosure from your lender, you may lose your home.

Filing a Chapter 13 bankruptcy may give you an opportunity to save your home from foreclosure. Firstly, when you file a Chapter 13 bankruptcy, you can include your mortgage arrearage in your Chapter 13 bankruptcy payment plan. Furthermore, you may also be able to remove HELCO’s and second mortgages.

Our experts at ZocLaw.com, explain how it all works.

File Chapter 13 Bankruptcy Online: Staying Current on Mortgage Payments

If you wish to keep your home when you file a Chapter 13 case, you must stay current on your mortgage payments. Mortgage payments during a Chapter 13 bankruptcy are usually paid directly to the lender. However, in some cases, the Chapter 13 bankruptcy trustee will require you to pay your mortgage through the payment plan. Experts recommend paying your lender outside of the bankruptcy simply because the trustee’s fee is calculated using a percentage of your payment plan.

File Chapter 13 Bankruptcy Online: Mortgage Arrears

In order to save your home, all arrears on your mortgage must be paid by the end of your Chapter 13 bankruptcy payment plan. Payment plans typically last between three to five years. This is perhaps one of the most attractive features of filing a Chapter 13 bankruptcy and why homeowners prefer it to a Chapter 7 bankruptcy.

File Chapter 13 Bankruptcy Online: Chapter 13 and Foreclosure

If you are facing foreclosure when you file for Chapter 13 bankruptcy, the  automatic stay halts the foreclosure. As long as you are current on your mortgage payments, and are able to make up the arrears through your Chapter 13 plan, your mortgage lender cannot foreclose on your home.

File Chapter 13 Bankruptcy Online: Stripping Off Junior Mortgages

If you have a home equity line of credit (HELOC) or a second or third mortgage that are no longer secured by the equity in your home, you may strip these loans off  by filing a Chapter 13 bankruptcy. The stripped off loan will become a part of your unsecured debt, which is paid off (usually at significant discount) through your Chapter 13 bankruptcy payment plan. At the end of the repayment period, any remaining loan amounts on the stripped off mortgages are discharged. This means that you are no longer legally obligated to pay it back.

File Chapter 13 Bankruptcy Online: Hiring A Bankruptcy Lawyer

It is recommended to hire an experienced bankruptcy attorney to handle your Chapter 13 bankruptcy case particularly if you are facing foreclosure. Not being able to secure the assistance of a Chapter 13 bankruptcy attorney may be detrimental to the outcome of your case. Most Chapter 13 bankruptcy attorneys fees can be paid through the Chapter 13 bankruptcy payment plan.

 

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