Chapter 13 bankruptcy is a court process that allows you to propose an affordable three- to five-year plan for mortgage solutions and reduction and repayment of any type of debt based upon your monthly ability to repay. Your repayment plan is prepared by an attorney in accordance with applicable law and your particular income and expenses. It is a customized plan that does not require the approval of your bank or your creditors. Only the correct Plan creates the correct solution.
Chapter 13 bankruptcy stops a foreclosure in any stage immediately and allows for the repayment of past-due mortgage payments over a three-to-five year period while allowing you to start making your regular monthly payments again as if no problem had occurred. It does not require the approval of your mortgage lender and will allow you to proceed even if your bank or servicing company or their attorneys don’t agree. Depending on the value of your home, it also allows for the removal of second mortgages and other liens.