To save your home in Chapter 13, you must make a plan to pay off your mortgage arrears. You must also pay back the remaining debt on your mortgage. This means that you must understand the amount of money you owe, how your mortgage works, and what your lender wants you to do. If you are underwater on your mortgage with one or more missed payments, this may sound impossible. How can you afford missed payments plus more payments to save your home?
Chapter 13 To The Rescue
When you begin your Chapter 13 case, your attorney will help you develop a plan to make all of the required payments. This will include your regular mortgage payments and the payments that you must make to the court to pay off your arrears. The repayment plan will also include the amount of money that you must pay the “creditors’ committee.” In a Chapter 13 bankruptcy, the creditors’ committee helps the court collect the money that you owe. Once you understand how your mortgage works and the amount of money you owe, you must contact your lender and negotiate with them about what will happen during your Chapter 13 case. The lender will want to make sure that they will be paid the money that you owe them. They will also want to make sure that they will be paid before you get a discharge of your debt. Your lender will want to make sure that you give them enough money to make sure that they will be paid. You must be able to convince your lender that you will be able to pay them in full, or close to full, over the course of your Chapter 13 case.
In a Chapter 13 bankruptcy, you can either pay off your mortgage arrears or you can surrender your home to the lender. If you choose to surrender the home, you must continue to pay your regular mortgage payments to the lender. You must also pay the amount of money that you owe the creditors’ committee. If you choose to surrender your home, the lender can sell your home. You may still be able to buy the home back from the lender. You must pay off the remainder of your mortgage along with the amount of money that you owe the creditors’ committee. You must also pay taxes and insurance. Before you surrender your home to the lender, you should have an attorney help you to understand the legal options available to you.
A Fort Worth bankruptcy attorney can help you to understand how much money you owe and how much money you would be able to pay the lender to keep your home. An attorney can help you to understand how much money you would keep if you surrender your home.