Many times people fall behind in their mortgage payments because they experience temporary unemployment or are simply trying to keep current on all of their bills thereby falling behind in their mortgage payments. If your home is in foreclosure, a Chapter 13 Bankruptcy can stop the foreclosure process and help you catch up on payments. One of the mail differences between a Chapter 7 and a Chapter 13 Bankruptcy is that the Court is permitted to set aside a default in your mortgage payments and force the mortgage company to accept back due payments over a period of 3 to five years.
In a Chapter 13 Bankruptcy a debtor, for a specific time period, pledges his future disposable income in order to pay a portion of certain debts. Often credit card bills become overwhelming and, in good faith, an individual attempts to keep current on all debts and ends up falling behind in mortgage payments. A Chapter 13 Bankruptcy allows an individual to pay back a portion of unsecured debts or none whatsoever and the focus can stay on saving the debtors house.
The process can be simplified to this series of events. The debtor files a petition for bankruptcy with the clerk of the United States District Court. Simultaneously, or soon thereafter, the debtor will file a Chapter 13 plan which proposes how the debtor intends to payback certain debts. Within the plan, the debtor proposes to 1) keep current on monthly mortgage payments & 2) repay the back due payments on the mortgage in equal monthly amounts over a period of three to five years.
For example, if an individual is $20,000 in arrears with a monthly mortgage payment of $1,000, the person would continue to pay the $1,000 to keep the loan current plus an extra $333.33 monthly in a five year plan. What that means is that the individual would pay a total of $1,333.33 per month in order to keep the bank from foreclosing on the house. This is a very simplified example which doesn't include interest on arrearages, fees or trustee commissions. You should realize that the credit card bills can either be significantly reduced or eliminated to facilitate the payment on the house.
The debtor proposes a Chapter 13 plan either with the initial filing or soon thereafter. The debtor includes a detailed financial analysis in their bankruptcy petition showing income from all sources and monthly expenses. The mortgage payment is included in the monthly expenses. What must occur is that the debtor has enough money remaining after the deduction of all monthly living expenses in order to pay the arrearage. Being that almost all other debts are significantly reduced or eliminated, it is usually achievable.
The Law Offices of Michael A. Dye, P.A. is a Florida Bankruptcy law firm in Fort Lauderdale, Broward County, Florida. The firm is a debt relief agency and helps individuals file for relief under the United States Bankruptcy Code. For more information or to schedule a consultation, please call (954)745-5848 or visit http://BrowardCountyBankruptcyAttorney.com.
In a Chapter 13 Bankruptcy a debtor, for a specific time period, pledges his future disposable income in order to pay a portion of certain debts. Often credit card bills become overwhelming and, in good faith, an individual attempts to keep current on all debts and ends up falling behind in mortgage payments. A Chapter 13 Bankruptcy allows an individual to pay back a portion of unsecured debts or none whatsoever and the focus can stay on saving the debtors house.
The process can be simplified to this series of events. The debtor files a petition for bankruptcy with the clerk of the United States District Court. Simultaneously, or soon thereafter, the debtor will file a Chapter 13 plan which proposes how the debtor intends to payback certain debts. Within the plan, the debtor proposes to 1) keep current on monthly mortgage payments & 2) repay the back due payments on the mortgage in equal monthly amounts over a period of three to five years.
For example, if an individual is $20,000 in arrears with a monthly mortgage payment of $1,000, the person would continue to pay the $1,000 to keep the loan current plus an extra $333.33 monthly in a five year plan. What that means is that the individual would pay a total of $1,333.33 per month in order to keep the bank from foreclosing on the house. This is a very simplified example which doesn't include interest on arrearages, fees or trustee commissions. You should realize that the credit card bills can either be significantly reduced or eliminated to facilitate the payment on the house.
The debtor proposes a Chapter 13 plan either with the initial filing or soon thereafter. The debtor includes a detailed financial analysis in their bankruptcy petition showing income from all sources and monthly expenses. The mortgage payment is included in the monthly expenses. What must occur is that the debtor has enough money remaining after the deduction of all monthly living expenses in order to pay the arrearage. Being that almost all other debts are significantly reduced or eliminated, it is usually achievable.
The Law Offices of Michael A. Dye, P.A. is a Florida Bankruptcy law firm in Fort Lauderdale, Broward County, Florida. The firm is a debt relief agency and helps individuals file for relief under the United States Bankruptcy Code. For more information or to schedule a consultation, please call (954)745-5848 or visit http://BrowardCountyBankruptcyAttorney.com.