How can I keep my home if I have to file a chapter 13? 21 Answers as of July 11, 2013

My income does not allow me to file for chapter 7 but I can't make all the future and past payments on my home. What can I do?

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Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
you will need to get current on any overdue mortgage pmts in a ch 13 plan.
Answer Applies to: Washington
Replied: 8/25/2011
Breckenridge and Walton
Breckenridge and Walton | Alan D. Walton
If you cannot afford to pay for it, you cannot keep your home.
Answer Applies to: Michigan
Replied: 7/22/2011
Burnham & Associates
Burnham & Associates | Stephanie K. Burnham
Please speak with an attorney to review the options available for your specific circumstances. It is going to be difficult to advise you without all of your information.
Answer Applies to: New Hampshire
Replied: 7/21/2011
CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE).
CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE). | Gary Lee Lane
Must work out deal with lender.
Answer Applies to: California
Replied: 7/10/2013
Tucker Legal Clinic
Tucker Legal Clinic | Samuel Tucker
Bankruptcy cannot help every situation, but it seems to me that if your income is in excess of the guidelines for Chapter 7 eligibility, you should be able to formulate a Chapter 13 plan. Otherwise, the inference is that you are in a home with an extremely high debt / installment payment - and likely very upside down. If this is the case are you sure you are being wise to want to keep the house?
Answer Applies to: Mississippi
Replied: 7/20/2011
    Bankruptcy Law Center
    Bankruptcy Law Center | Bill Zurinskas
    Most debtors who file for chapter 13 bankruptcy in Colorado can keep their home. If you are current on your monthly payments and don't have equity in excess of the exemption limits ($60,000 or $90,000 in Colorado), then all you have to do is keep current on your monthly payments during your chapter 13 plan period. If you are not current, you may be able to cure the default in your chapter 13 bankruptcy plan.
    Answer Applies to: Colorado
    Replied: 7/20/2011
    Financial Relief Law Center
    Financial Relief Law Center | Mark Alonso
    You should be able to keep your home in a chapter 13 bankruptcy. Chapter 13 allows you to enter into a repayment plan with your creditors to repay a portion of your insecure debt as well as any mortgage arrearages you have incurred. Basically, it will calculate the total amount owed to your unsecured debt combined with your mortgage arrearages, and then calculate your monthly disposable income, which is what you will pay on a monthly basis over the next 60 months or so. Chapter 13 is a great way to keep your home and file for bankruptcy at the same time. As a side note, regarding your mortgage payments; you should consider whether your mortgage payment is actually affordable to you and if you can afford to pay the mortgage payment as well as the payment into the ch. 13 plan. If your mortgage payment is affordable to you, but you just fell behind on the payments and need help dealing with the past due amount, then ch. 13 is probably your best bet. However, if your mortgage payment is not really affordable to you, you should consider contacting a reputable and experienced law firm regarding potential loan workout solutions that will provide payment relief for your mortgage payment.
    Answer Applies to: California
    Replied: 7/20/2011
    Colorado Legal Solutions
    Colorado Legal Solutions | Stephen Harkess
    If you cannot keep up with your mortgage payments going forward, you will either have to convince the bank to modify your loan or prepare to move somewhere else. A Chapter 13 plan can allow you to take the payments you are behind and spread them out over 3-5 years to make catching up easier.
    Answer Applies to: Colorado
    Replied: 7/20/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    In order to keep your home in chapter 13 you must continue to make the ongoing payments. Arrears (back payments) can be put into the payment plan.
    Answer Applies to: California
    Replied: 7/19/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Sometimes reality is ugly. Chapter 13 is a catch up process. If you can't catch up, and can't modify your way out, you may lose the home. Sorry to be the bearer of bad news.
    Answer Applies to: California
    Replied: 7/19/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    If you cannot afford the payments in the future and cannot afford to pay the arrears in the Chapter 13 plan then you have no choice but to let the house go. You can also try a loan modification to reduce the payments and add the arrears to the balance of the loan to be paid at the end of the loan term. Good luck.
    Answer Applies to: California
    Replied: 7/19/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    Unless you are able to pay all current payments and catch up back ones, you CANNOT keep a home in Chapter 13. You may be able to do a 13 and surrender the home. Ask your lawyer. And be sure you really can't file Chapter 7. A good lawyer looks past income to find ways to qualify may over-median debtors into Chapter 7.
    Answer Applies to: Georgia
    Replied: 7/19/2011
    Ray Fisher Law Offices
    Ray Fisher Law Offices | Ray Fisher
    The bottom line is you cannot keep your home if you cannot afford to pay for it. However, the mortgage company may not be entitled to collect on the note or foreclosure. You should talk to a lawyer who specializes in those kinds of cases to see if that is the case. I know several if you need a referral.
    Answer Applies to: Texas
    Replied: 7/19/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    Do you mean you earn too much to file a 7? Did a competent attorney confirm that? If you can't make up payments in a 13, you may have to surrender the house. I'd look on NACBA.org and find a lawyer in your area to be sure.
    Answer Applies to: Virginia
    Replied: 7/19/2011
    Symmes Law Group, PLLC
    Symmes Law Group, PLLC | Richard James Symmes
    Filing a chapter 13 bankruptcy will allow you to make up all of your mortgage arrears over a period of 60 months.
    Answer Applies to: Washington
    Replied: 7/19/2011
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    Have you tried getting a loan modification? A Chapter 13 only works to save your house if you have enough income to make the payment plus the extra required to make up the amount that you are behind. Call your mortgage company and see if they will consider a modification of some sorts.
    Answer Applies to: Michigan
    Replied: 7/19/2011
    The Law Offices of Steven Grace
    The Law Offices of Steven Grace | Steven Grace
    First of all, why are you considering bankruptcy? Is it because you have other debts such as credit cards? If this is the case a Chapter 13 will help with those but because you can't afford to make the future payments on your home, a Chapter 13 will do very little to save your home. The best a Chapter 13 could do would be to give you the ability to make up your overdue mortgage payments over a period of 3-5 years, but you would also have to make your monthly mortgage payment going forward. This is a problem. It appears you do have income, just not enough. I would look into the government loan modification programs (such as HAMP) which may help you lower your mortgage payments to as low as 31% of your gross monthly income if you qualify. There are housing counselors that will handle this for free. Other than that, there are ways to facilitate a "dignified exit", such as: Deed-In-Lieu of Foreclosure, Short Sales and Foreclosure Defense, but the reality of the matter is that if you can't afford to pay your mortgage (or you can't get it lowered) you won't be able to avoid foreclosure, and losing your home. I hope this helps.
    Answer Applies to: Illinois
    Replied: 7/19/2011
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