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Can Bankruptcy Save My Home?

Can Bankruptcy Save My Home?

If you’re in jeopardy of home foreclosure, it goes without saying that it’s a stressful and scary situation. Adding credit card debt, and other household expenses on top of an already daunting situation can feel like you are underwater and there’s no way out. However, help can be available through bankruptcy. Here are your options:

Chapter 13 and Foreclosure

If you’ve fallen behind on your mortgage payments and are threatened with foreclosure, Chapter 13 can help save your home. Also known as “reorganization bankruptcy,” Chapter 13 is designed for individuals who want to keep their home as well as other properties.

How are “Catch Up” Payments Calculated?

Chapter 13 bankruptcy can offer a way to “catch up” on payments. This payment structure can ease the fear of losing your home. If you can afford to make your current monthly payment, plus the “catch up” payment, you can avoid foreclosure. Here’s how “catch up” payments are calculated:

  • The total amount you are behind divided by 60 months = catchup payment amount.
  • Catch up payment amount plus regular mortgage payment = total payment amount to be made during bankruptcy.

For example:
Regular mortgage payment: $1,500
Behind 6 months: $1,500 x 6 = $9,000
$9000 / 60 months = $150

Total payment amount to save your home: $1,650/month for 60 months. (Please note this calculation does not include attorney, court or trustee fees).

Other Benefits for Filing Chapter 13

Besides saving your home from foreclosure, Chapter 13 bankruptcy can also alleviate the following debt situations:

  • Vehicle repossession.
  • Tax debts.
  • Credit card and other unsecured debt.
  • Garnishment.
  • Collection calls from creditors.
  • Student loans — student loans are typically not dischargeable in bankruptcy, but when filing for Chapter 13, you may be able to put your student loan payments on hold, while you address your other debt.

If you are facing home foreclosure, our experienced bankruptcy attorneys can help. Contact Moore & Associates, LLC today at (913) 225-8330 to learn more about your bankruptcy choices and our no cash upfront options.

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