Bankruptcy and Home Ownership

Can I Keep My House in a Bankruptcy?

Achieving homeownership is a dream of many Americans. Yet, that dream can be stolen away when the mortgage payments become difficult to make due to job loss, medical bills, or other unmanageable expenses. If you are facing foreclosure or believe you are on the path to losing your home, filing Chapter 13 bankruptcy can help prevent foreclosure and provide debt relief.

At the Juras Law Firm, PLC, in Phoenix, Arizona, bankruptcy attorney Irena Juras works with debtors, trustees, creditors, and other parties in proceedings under the United States Bankruptcy Code to stop home foreclosure. To discuss your questions, concerns, and options for keeping your home, contact our bankruptcy firm online to schedule a consultation or call (480) 425-2009.

Can I Keep My House in Bankruptcy?

It may be possible to save your home through Chapter 13 bankruptcy. While there are several options available for you to keep your home, such as mortgage refinancing, filing Chapter 13 bankruptcy is often the only option to save a home from foreclosure. This is true because Chapter 13 provides specific tools to help keep you in your home.

First, Chapter 13 bankruptcy allows you to pay arrearages or back mortgage payments. Chapter 13 bankruptcy prepares a repayment plan, in which debtors agree to pay a portion of their income to creditors. The repayment plan allows debtors to pay back missed mortgage payments over the course of three to five years. Thus, debtors are allowed to keep their home and avoid foreclosure so long as they can make payments under the new repayment plan.

Second, Chapter 13 may strip second or third mortgages. Due to the drop in the housing market, millions of homeowners owe more on their mortgage than their house is worth. With this reduced home value, second or third mortgages are often left unsecured. This means that in Chapter 13, the homeowner can strip the second or third mortgage and discharge these debts at the end of the repayment period. Often, debtors can stay in their home without ever paying these liens.

Contact the Juras Law Firm

If you are facing the possibility of home foreclosure, contact a bankruptcy attorney at the Juras Law Firm to learn how you can achieve debt relief, obtain a manageable mortgage, retain assets, and maintain credit. Attorney Irena Juras can show you how Chapter 13 bankruptcy and other options may provide debt relief and save your home. To schedule a consultation, call (480) 425-2009 or contact us via email.

Legal Notice: We help people file for relief under the U.S. Bankruptcy Code.