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Do I have to give up my home in Chapter 13 Bankruptcy?

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The simple answer here is, no. In fact, most people file a Chapter 13 Bankruptcy in order to keep their home and save it from foreclosure. If you are current on your mortgage payments, the Chapter 13 typically has no effect on your home. You simply continue to make the mortgage payments directly to the Mortgage company. If you are behind on your home when you file bankruptcy, read below on how to keep your home in Chapter 13 Bankruptcy:

Chapter 13 Bankruptcy is a repayment and reorganization plan. The type of person who files a Chapter 13 Bankruptcy is someone who is behind on a house, car, IRS payments, etc. and wants to keep the collateral and repay the amounts that are past due.

In order to keep your home through a Chapter 13 Bankruptcy, you will need to be able to make your regular monthly mortgage payment in addition to repaying any arrearage owed to the mortgage company over a 36-60 month period. Our District, The Northern District of Texas, utilizes the “Conduit Program”. This simply means that your regular principal and interest payments are repaid through your Bankruptcy Payment rather than directly by you to the mortgage company.

The simple answer here is, yes, a Chapter 13 Bankruptcy can help you retain your home if you are facing foreclosure. There are other factors to consider when calculating what you would need to repay through your plan and whether or not you can afford to make those payments and retain your home. For a more in depth analysis you can call our office and one of our attorneys will meet with you to help determine what your options are to keep your home.

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