What happens if I am behind on my mortgage payments during Chapter 13 Bankruptcy?

Filing for Chapter 13 Bankruptcy in Washington might help you stay in your home if you are behind on your mortgage payments. With Chapter 13 Bankruptcy, you can create a repayment plan with your lender to pay off your delinquent mortgage. You can spread out the payment of arrears over a 3-5 year period. During this period, you must stay current on all mortgage payments and other secured debts. Once you successfully complete the repayment plan, you are not obligated to any remaining debt or arrears. If you are behind on your mortgage payments, you must also file a motion for the court to lift the automatic stay. This stay prevents the lender from taking action to collect on unpaid debt while the bankruptcy case is pending. The court will determine if lifting the stay is necessary. Additionally, you may be eligible for a loan modification. This is a repayment adjustment that includes extending your loan payments, reducing the interest rate, and/or increasing the loan term to make the payments more affordable. This can be especially helpful if you are experiencing financial hardship due to medical bills, job loss, or another issue. Chapter 13 Bankruptcy can help you catch up on overdue mortgage payments and keep your home. Make sure to seek professional legal advice from a qualified bankruptcy attorney in order to protect your legal rights.

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What happens if I am behind on my mortgage payments during Chapter 13 Bankruptcy?

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