If I’ve Fallen Behind on a Mortgage But Have a New Job, Should I File Chapter 13 Bankruptcy to Keep My House?

A Chapter 13 bankruptcy case allows one who is behind on secured debts to “catch up” on these debts through the chapter 13 plan and repayment process.

Using disposable income (the debtor’s income in excess of allowed expenses), the debtor pays the Bankruptcy Trustee a monthly amount that will pay the past due amounts in full over time.

During the Chapter 13 Bankruptcy case, the debtor must also remain current on the obligation in question.

So while we cannot provide any legal advice to regarding a specific personal situation, a Chapter 13 case may meet the stated need of keeping a house out of foreclosure.

However, there are a number of other options available through both state and federal government programs, as well as working directly with the note holder or mortgage lender, that might provide for a more simple solution than the filing of bankruptcy.

If you decide to file Chapter 13 Bankruptcy and wish to handle the matter on your own without an attorney, see Standard Legal’s Bankruptcy legal forms software page for details on self-help pro se legal forms and instructions.

If you are unsure what the best step might be for your personal situation, we suggest you discuss your case with a local attorney. To find a local attorney for FREE, visit Standard Legal’s Attorney Find page.