Chapter 13 can work much better than Chapter 7 if you have a judgment or HOA lien on your home, or get behind on child or spousal support.
Filing a Chapter 7 case stops foreclosure of your home temporarily, helping you gather funds for your transition to your next housing.
Statutory liens survive bankruptcy. Chapter 7 may still be able to help in various ways and be your best solution.
As you decide whether to use the powerful tools of Chapter 13 to hold onto your home, it helps to know that you can later change your mind.
If your home is exposed to your creditors and to the Chapter 7 trustee because it has too much equity, Chapter 13 can protect that equity.
If your home is at risk because you have more equity than the amount of the homestead exemption, Chapter 7 might still save your home.
You have much, much more time to catch up on unpaid mortgage payments, as well as any unpaid property taxes.
Bankruptcy cannot remove contractor's liens or other statutory liens from your home, but both Chapter 7 and 13 can help you deal with them.
Bankruptcy law sets a maximum dollar amount of protection for your recently-bought home, but this really applies to only a few states.
The federal exemptions are nudging up about 3%. But that only matters if you are allowed to use them, and are higher than your state ones.
Stripping your second mortgage could give your home the very best fresh start by saving you a tremendous amount of money.
Mortgage modification may reduce your monthly payments but not likely reduce your balance owed. So it costs less short-term, not long-term.
Most homeowners contemplating bankruptcy have their home equity protected by their homestead exemption. If not, consider Chapter 13.
Although either kind of bankruptcy will stop an approaching foreclosure, which one should you choose?
Either Chapter 7 or 13 will stop a foreclosure, even if your lender unintentionally or purposely proceeds with the foreclosure sale.