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Will Chapter 13 save my home?

by | Mar 17, 2021 | Foreclosure

Facing a foreclosure can be scary, especially if you cannot figure out how to catch up on your overdue mortgage payments. If you want to find a way to save your home and have exhausted all other options, you may consider filing Chapter 13 bankruptcy.

Credit Karma explains that Chapter 13 is a repayment plan. Through this type of bankruptcy, you set up a plan to repay all or some of your debts.

Repayment plan

The repayment plan gives you a chance to set up payments to catch up on your mortgage. However, you should be aware that the court will prioritize debts. If you have higher priority debts, such as child support, and those debts take all of the money allotted for your repayment, then you will not be able to catch up on your mortgage through the plan.

You will need to figure out another way to save money to do so, which can be difficult because the trustee will carefully assess your finances to ensure any extra money goes towards your debt repayments.

Automatic stay

The good news is filing for bankruptcy issues an automatic stay. The stay prevents creditors from taking further actions towards collecting on your debts.

The stay is only temporary. It ends when the court discharges your bankruptcy, which in a Chapter 13 is usually three to five years after you file. The stay should give you time to get your finances back in order and allow you to save your home from foreclosure if you cannot do it through your repayment plan.


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