Stop foreclosure – Catch up with your mortgage

A Chapter 13 case can be a great option for someone who falls behind on a mortgage due to life events. This type of case provides the opportunity to catch up with your mortgage over a 5 year period.

For example, if you are behind $30,000 with your mortgage and receive a foreclosure notice, filing for Chapter 13 bankruptcy will stop the foreclosure and provide a 5 year repayment plan. In this example, a homeowner will not have to come up with the full catch up amount right away, rather, the $30,000 will be spread out over 5 years, divided into 60 equal monthly payments. Thus, the homeowner will pay a $500 per month catch up payment for 60 months ($30,000 divided by 60 months).

Filing for chapter 13 bankruptcy can be a great option to stop a foreclosure and catch up with your mortgage. Once the chapter 13 case is filed, you will be able to resume making your regular mortgage payments and provide for the catch up payment through your chapter 13 payment plan. The key to success is to have sufficient income to be able to cover this expense every month for the duration of the 5 year plan.