What happens to my mortgage in Chapter 13 Bankruptcy?

In Virginia, when you file for Chapter 13 Bankruptcy, your mortgage loan will not be discharged, or eliminated. The amount you owe on the mortgage is combined with other debts you owe into a repayment plan. This repayment plan will typically last three to five years and must be approved by the court. In most cases, the repayment plan will allow you to keep your home and keep up with your mortgage payments. The amount that you pay into the plan each month will depend on how much you owe and your income. Any payments that are not covered in the repayment plan will have to be paid directly to your lender. When your repayment plan is finished, you will have paid the amount you owe on your mortgage loan, plus any other debts that were consolidated in the plan. However, the lien on your house will remain in place. This means that if you were to default on your mortgage payments again after your repayment plan is done, the lender still has the right to foreclose on your home. Overall, Chapter 13 Bankruptcy does not discharge your mortgage loan but rather creates a repayment plan to help you manage the debt. You will keep your home but are required to pay back your mortgage loan, which may be possible over a longer period of time.

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What happens to my mortgage in Chapter 13 Bankruptcy?

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