Your home is likely a treasured and valued asset. As such, it has both financial and emotional value, offering you and your family a place of solace. A�Traditionally, the home is also a familya��s largest asset. A�For those who are behind on mortgage payments or struggling each month to make them, the prospect of losing their home is terrifying. A�The good news for these homeowners is that Chapter 13 bankruptcy can provide an opportunity for qualifying individuals to prevent or at the least delay foreclosure and pay off their mortgage arrears. A�In some cases, struggling homeowners can even eliminate their second or third mortgages entirely in a Chapter 13 action. A�Overall, Chapter 13 can mean the difference between losing your home and continuing to live in and enjoy it for years to come.
Saving Your Home
If you are behind on your mortgage payments and unable to become current, Chapter 13 bankruptcy may provide a way for you to prevent your home from entering foreclosure. A�In a Chapter 13 bankruptcy, you will develop a repayment plan in which you commit to pay all or a portion of your debts. A�The repayment plan can include secured debts, like your mortgage. A�You will additionally have the ability to include back owed monies on your mortgage in the repayment plan. A�The back owed mortgage payments can be spread out over the entire repayment plan period, which is often three to five years.
In order for a Chapter 13 bankruptcy to be successful in allowing you to keep your home, you will need to maintain the repayment plan in addition to staying current on your mortgage payments. A�Assuming you can make the required payments, you will complete your bankruptcy action with an up to date mortgage. A�You can then continue to make mortgage payments on your home.
Stripping Second Mortgages Through Chapter 13
One of the greatest advantages of Chapter 13 bankruptcy is the ability of some individuals to eliminate second or third mortgages. A�If your home is valued at less than or equal to the primary mortgage, your bankruptcy attorney can assist you in requesting the second or subsequent mortgages be a�?stripped.a�? A�These mortgages then become unsecured debt which, under a Chapter 13 bankruptcy, could be entirely discharged or partially paid off.
The Automatic Stay Provision
If your home is in imminent danger of foreclosure, filing for Chapter 13 bankruptcy will provide an additional benefit. A�When you file your petition in the bankruptcy court, an automatic stay will issue. A�The stay prevents the bank and any other creditors from continuing the foreclosure action at least until the repayment plan is approved by the court.
Ariano & Reppucci: Experienced Phoenix Bankruptcy Attorneys Guiding Clients Through Chapter 13 and Chapter 7 Bankruptcy
For anyone behind on their mortgage payment and facing possible foreclosure on their home, Chapter 13 bankruptcy could provide a way for you to save your home and payback missed mortgage payments at a rate you can afford. A�Your home is one of your most valued assets. A�Facing the loss of your home is both frightening and difficult. A�Allow the Phoenix Arizona Bankruptcy Lawyers at Ariano & Reppucci to help save your home through Chapter 13 bankruptcy. A�Our skilled and compassionate bankruptcy attorneys will examine your individual circumstances and discuss with you all possible options for keeping your home. A�At Ariano & Reppucci, you will always speak directly to an attorney and have an attorney prepare your bankruptcy petition. A�Our top bankruptcy attorneys offer low flat fees and quality representation. A�Call Ariano & Reppucci today at (623) 777-2980 to schedule your free consultation.