Chapter 13 bankruptcy helps people save their homes

No one wants to lose their home.

Although most people think filing for bankruptcy will automatically mean they will lose their homes, this is simply not true. By opting for a Chapter 13 bankruptcy instead of the more commonly used Chapter 7 option, there are ways to keep your home.

How to Save Your Home 

Although Chapter 13 is not the best choice for everyone, it can be a great option to obtain debt-relief while still keeping possession of your home.

There are a number of ways that Chapter 13 bankruptcy can allow you to:

Get some relief from creditors:

The automatic stay is a rule that prevents creditors and their agents from engaging in any collections activities against someone in the bankruptcy process. In addition to giving you a much needed chance to catch your breath is you are in serious debt, the automatic stay could also give you a chance to get caught up on some payments.

Use more of your money to make home payments:

In bankruptcy, you will have the chance to liquidate some of your assets that have debt attached, while significantly reducing your monthly bills on the assets you choose to retain. This could free up income for your house payments.

Strip off second and third mortgages:

Depending on your circumstances, you might be able to strip off any mortgages other than your first and primary mortgage. If the total of your mortgages are more than your home's total value, there is an opportunity to strip off some of that excessive debt.

Get on a payment plan that works for you:

One of the most important features of Chapter 13 bankruptcy is that is allows debtors to enter into a payment plan that makes more sense for their income, debts, costs and obligations.

For many Minnesotans, Chapter 13 has been a great tool for helping many people alleviate debt while retaining their homes. If you are considering bankruptcy anywhere in the Twin Cities, make sure you talk with an experienced attorney who can advise you of the risks and options involved.

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New Brighton, MN 55112

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