Yes, you can catch up on your mortgage payments with a Chapter 13 bankruptcy. Chapter 13 bankruptcy in Pelham is a type of bankruptcy that permits people with a steady income to settle their debts over a three to five-year period while keeping their possessions. One of the primary goals of Chapter 13 bankruptcy is to assist those who are behind on their mortgage payments in catching up so that they can keep their houses.
To catch up on your mortgage through Chapter 13 bankruptcy, you will need to file a repayment plan with the bankruptcy court. This plan must outline how you will catch up on your missed mortgage payments, as well as how you will pay your current mortgage payments going forward. The plan must be approved by the bankruptcy court before it can go into effect and your bankruptcy attorney in Montgomery will help make sure the process is as smooth as possible.
Depending on the specifics of your repayment plan, you may have a certain length of time to make up missed mortgage payments after filing for Chapter 13 bankruptcy. You will typically have three to five years to make up any missed mortgage payments; however, this can change based on your particular situation. For instance, you might need to make up your missed mortgage payments more rapidly if you have a lot of equity in your property.
Avoiding foreclosure is one of the advantages of catching up on your mortgage through Chapter 13 bankruptcy. Chapter 13 bankruptcy might provide you the time and breathing room you need to get caught up on your mortgage payments and keep your house if you are behind and at risk of foreclosure. This is why it is important to retain a local bankruptcy lawyer in Prattville to help you with the process.
Another benefit of Chapter 13 bankruptcy is that it can allow you to restructure your other debts, such as credit card debt, medical bills, and personal loans. This can free up more of your income to put towards your mortgage payments, making it easier to catch up on what you owe.
If you’re thinking about filing for Chapter 13 bankruptcy to catch up on your mortgage, there are a few things to bear in mind. To begin with, you must be employed to be eligible for Chapter 13 bankruptcy. This means that you need a reliable source of income that you may use to pay your bankruptcy debts, such as a salary or regular wages.
Second, you will need to make all of your bankruptcy payments on time, as any missed payments can result in the dismissal of your bankruptcy case. This can be challenging, as you will need to make your bankruptcy payments in addition to your regular mortgage payments and other bills.
Finally, it’s important to keep in mind that while Chapter 13 bankruptcy can help you catch up on your mortgage, it will also have a negative impact on your credit score. Filing for a bankruptcy in Birmingham will stay on your credit report for up to seven years, and can make it more difficult for you to obtain credit in the future. However, if you are able to successfully complete your Chapter 13 bankruptcy and catch up on your mortgage, you may see an improvement in your credit score over time.
In conclusion, Chapter 13 bankruptcy can help you catch up on your mortgage payments. With this sort of bankruptcy, people with steady income can keep their assets while repaying their debts over a three- to five-year period. You can make up for missed mortgage payments and prevent foreclosure by submitting a repayment plan to the bankruptcy court. However, it’s crucial to bear in mind that Chapter 13 bankruptcy can have a negative influence on your credit score and that in order to properly complete the process, you will need to make all of your bankruptcy payments on time.
Attorney Steven A. Harris regularly blogs in the areas of family law, bankruptcy, probate, and real estate closings on this website. Mr. Harris tries to provide informative information to the public in easily digestible formats. Hopefully you enjoyed this article and feel free to supply feedback. We appreciate our readers & love to hear from you!