At times when people come to see us, they are often in danger of losing their homes. In many of those situations, however, we may be able to help them keep their homes through bankruptcy, or other legal options that may be available.
Where a person has a regular form of income, Chapter 13 bankruptcy provides a number of options to homeowners seeking to keep their homes.
For instance, let’s say you are behind on your mortgage. A Chapter 13 bankruptcy may allow you to roll those late payments into future payments so you can catch up on your mortgage and keep your home.
Some homeowners have a second mortgage, or multiple mortgages, against their house. Many times, that second mortgage was put on the house when the client took out a home equity line of credit (HELOC).
Where the house is worth less than the amount owed on the first mortgage, all additional mortgages may be treated just like credit card debt in a chapter 13. That means you can come out of your bankruptcy better able to pay for your home because you will have fewer mortgages against it.
Each situation, however, is different, so you want to consult with an experienced bankruptcy attorney in your area. Very often, the success or failure of a bankruptcy case depends, not on the general laws, but on how those laws are applied or followed in a given situation by a judge or a local bankruptcy trustee and its panel trustees who examine each individual case in-depth.