Chapter 13 Bankruptcy

How Chapter 13 Lawyer Helps Stop Foreclosure

Stop Foreclosure

Filing a Chapter 13 bankruptcy immediately halts a foreclosure. Even if there is already a judgement of foreclosure against you, you can still save your home if the bankruptcy is filed prior to the sell of your home.

Eliminate Second and Third Mortgages

A Chapter 13 bankruptcy may eliminate second and third mortgages on homes if those mortgages are wholly unsecured.

Reduced Principle Balance on Investment Properties

You may reduce the principle balance owed on investment properties to the fair market value of the property in Chapter 13 bankruptcy.

Reduce Principle Balance and Interest on Vehicles

You may reduce the principle balance owed on vehicle loans to the fair market value of the vehicle. Chapter 13 bankruptcy also reduces the interest owed on vehicle loans.

Eliminate Most Unsecured Debt

Most Chapter 13 bankruptcy debtors pay back a very small amount or no unsecured debt. The amount of unsecured debt you pay back if any, is based upon your monthly income and necessary expenses.

Tax Debt

The treatment of tax debt in Chapter 13 bankruptcy cases varies based upon its characterization. Priority tax debt must be paid through the Chapter 13 plan. Secured tax debt may be reduced to the value of the property securing it. Unsecured tax debt may be completely eliminated completely upon completion of the Chapter 13 plan.


In Chapter 13 bankruptcy, you pay back a portion of your debts over a three to five year period. That time period enables debtors time to catch up on mortgage arrears completely halting any foreclosure proceedings.  Chapter 13 also enables you to reduce the principle balance and interest on secured debts effectively lowering the monthly payments. You may surrender property secured by a loan that you no longer wish to keep. These are just some of the benefits to filing a Chapter 13 bankruptcy.

You may end up paying back a very small amount of unsecured debt through Chapter 13 bankruptcy. This is determined by a calculation of your currently monthly income minus deductions for mortgage (rent), utilities, food, gas, medical expenses, vehicle insurance, etc. Whatever amount is remaining each month, if anything, would be paid to the unsecured creditors. Any debts that are not paid in full at the completion of the Chapter 13 plan, will be discharged.

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