Should I file Chapter 7 or 13 to prevent foreclosure?
Chapter 13 gives homeowners the opportunity to modify their home mortgage. In addition, it may provide up to five years to catch up on missed mortgage payments without additional interest charges. Chapter 7 does not include either of these options.
Can I keep my home if I file Chapter 13?
Yes, homestead (primary residence) is a protected asset in both Chapter 13 and Chapter 7 bankruptcy. Therefore, you may not have to forfeit your home as a condition of the bankruptcy.
Will Chapter 13 lower my payments?
Chapter 13 bankruptcy gives borrowers the opportunity to reorganize their mortgage debt into one monthly payment. Additionally, you may be able to discharge most unsecured debts.
Are there debt limits for Chapter 13?
Yes, unsecured debts must be less than $394,725 and secured debts must be less than $1,184,200. The amount of debt allowed changes frequently, check with a local attorney for updates.
Can I file Chapter 13 bankruptcy again?
If you previously filed Chapter 13, you must wait 2 years from the discharge for eligibility to refile. If you now want to file Chapter 7, you must wait 6 years from the commencement date of your Chapter 13.
Will Chapter 13 bankruptcy stop foreclosure?
Yes, when a Chapter 13 case is filed an automatic stay is instantly put into effect. The automatic stay is a federal law that stops all collection activity, including foreclosure sales already scheduled to occur.
What is a Chapter 13 Payment Plan?
The payment plan outlines how debts will be paid in a Chapter 13 case. A plan usually requires the borrower to pay their disposable income for the next 3 to 5 years toward debts. If the borrower completes the plan, balances on credit cards and other unsecured debts at the end of the bankruptcy… Read More »
Can I modify my car loan in Chapter 13?
In Chapter 13 bankruptcy, the borrower can have up to 5 years to pay off a car loan. This provides time to catch up on payments by spreading the past-due balance over essentially a new 60-month loan.
Can I get a loan after Chapter 13?
Yes, some lenders will have no waiting period for new loans. On the other hand, the Federal Housing Administration (FHA) can require you to wait 24 months before being eligible for a new home mortgage.
