Bankruptcy can help if you are facing a property tax foreclosure — Chapter 7 by getting rid of other debts, Chapter 13 by buying you lots more time.
Bankruptcy can save and protect your home in many different ways. One of these may be just what you need. Or you may use them in combination.
Chapter 13 can work much better than Chapter 7 if you have a second mortgage, get behind on property taxes, or have a tax lien on your home.
There are scenarios when you are current on your home mortgage and are dealing with other home-related debts where Chapter 7 works well.
Falling behind on home property taxes creates a special problem. The tax collector will likely be much less pushy than your mortgage lender.
If behind on property taxes on property that isn't your home, either Chapter 7 or Chapter 13 may buy you the time to save this property.
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.
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.
Catching up on property taxes benefits both you and your mortgage lender. Chapter 13 helps you pull this off under much less pressure.
Falling behind on property taxes is dangerous, and scares your mortgage lender. Bankruptcy can help you deal with both.
Whether you're about to fall behind on your mortgage or have already done so, a forbearance agreement avoids foreclosure while you catch up.
Chapter 13 helps if you owe divorce debts, have personal property collateral, are behind on property taxes, or owe old and new income taxes.
Bankruptcy helps with your property taxes either by writing off your other debts or by buying you more time to catch up.
Falling behind on property taxes can have serious consequences, but does not necessarily mean you should hurry to sell your home.
Although either kind of bankruptcy will stop an approaching foreclosure, which one should you choose?