Benefits of Filing a Chapter 13 Bankruptcy:
1. A Bankruptcy stops the mortgage foreclosure. Under the law, once you file a chapter 13 bankruptcy all legal action, including a mortgage foreclosure must stop. Stopping the mortgage foreclosure will give you time to think about your options to save your home.
2. To work out a chapter 13 bankruptcy, You keep your property but you must earn wages or have other income to work out a chapter 13 bankruptcy payment plan with the mortgage company. The Bankruptcy Judge can force the mortgage company to accept a payment plan to repay the amount you owe
3. Approval of the Chapter 13 Bankruptcy payment plan is up the a Judge NOT the mortgage company. If you qualify under terms of the Federal Bankruptcy Code, The Judge can force the bank/mortgage company to accept the the bankruptcy plan and payments you make under that plan.
4. You have up to 5 years to repay any amounts that you are behind based upon the mortgage foreclosure. A five year plan allow you to repay the amount you owe to the bank slowly so you can have enough money to continue to pay your regular household expenses like your electric bill or car payment.
5. The bank/mortgage company can not continue the mortgage foreclosure during the entire time you are in the payment plan. At the end of the plan, the mortgage foreclosure will be dismissed because you have paid back all of the money you owe to the bank.
