Chapter 13 stops both mortgage and property tax foreclosures. Then you have up to 5 years to catch up on the property taxes.
Filing a Chapter 7 or 13 case both stop creditor collection actions against you just the same. But after that the differences are huge.
Filing a Chapter 7 bankruptcy case stops a foreclosure and buys some time to either arrange to keep the home or move in a peaceful way.
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.