Your Paid-Current Home Mortgage in Chapter 7 and 13
There are scenarios when you are current on your home mortgage and are dealing with other home-related debts where Chapter 7 works well.
Keep an Open Mind about Chapter 7 or 13
Here's an example why to keep an open mind about filing under Chapter 7 vs. Chapter 13. Slightly different facts can make all the difference.
Chapter 7 Buys Time and Money to Move from a Foreclosing Home
Filing a Chapter 7 case stops foreclosure of your home temporarily, helping you gather funds for your transition to your next housing.
Buy Time to Sell Your Home with Chapter 13
If you are behind on your mortgage, and are thinking of selling your home, you can often delay selling for many months or even for years.
A Second Mortgage “Strip” through Chapter 13
If you own a home with a qualifying 2nd or 3rd mortgage, one of the best reasons to file a Chapter 13 case is to "strip" off that mortgage.
Catching up on Property Taxes When You Have a Mortgage
If behind on property taxes on property with a mortgage, that likely puts you in default on the mortgage itself. Chapter 13 can fix this.
Catching up on Your Mortgage on Your Terms
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.
An Example of Surrendering Your Home Later in a Chapter 13 Case
Here's an example of how Chapter 13 can allow you to hold onto your home but then change your mind about it later.
“Avoiding” a Judgment Lien on Your Home in Chapter 13
Both Chapter 7 and Chapter 13 can wipe away judgment liens. But doing so under Chapter 13 can be better when used with its other benefits.
Flexibility in Selling Your Home through Chapter 13
If you are behind on your mortgage and want to sell, you may be able to delay the home sale for years and pay the arrearage out of the sale.
Catching up on Your Home Mortgage through Chapter 13
You have much, much more time to catch up on unpaid mortgage payments, as well as any unpaid property taxes.
Power over Your Secured Debts through Chapter 13
Chapter 7 strengthens your hand with your secured debts. But Chapter 13 can be much stronger. Starting with a more potent "automatic stay."
Keeping Non-Home Real Estate through Bankruptcy
Whether you can keep other real estate depends first on whether it's "exempt."
Escape Your Underwater Second Mortgage
If your second (or third) mortgage is not backed by any equity in your home, you can "strip" that mortgage off your home's title.
Keeping Your Home through Chapter 13
Chapter 13 gives you much more time to catch up on your unpaid mortgage payments. That can be reason enough choose this option.