What happens to my mortgage in Chapter 13 Bankruptcy?

In Washington, Chapter 13 Bankruptcy gives individuals the opportunity to reorganize their debts and keep their home. When filing for Chapter 13 Bankruptcy, you will be able to come to an agreement with your lender. This agreement is known as a repayment plan and will call for you to make regular payments to your lender, as well as making up missed payments over time. It is important to note that this repayment plan will be based on your income and be approved by the court. In other words, your lender may not agree with what you can afford to pay. If you are unable to make the payments outlined in the repayment plan, the Chapter 13 Bankruptcy case will be dismissed and the original terms of your loan will go back into effect. Once your Chapter 13 case is approved, your mortgage will be treated differently than other debts. You must continue to make all payments on your mortgage as outlined in the repayment plan and you must also remain current on your mortgage during the repayment period. It is important to note that if you fall behind on your mortgage payments after the repayment plan has been approved, the court can take steps, such as forcing the sale of your home, in order to make sure the balance is paid in full. Overall, filing Chapter 13 Bankruptcy in Washington can be beneficial, as it will give you the chance to keep your home by allowing you to come to an agreement with your lender. However, it is important to keep in mind that you must remain up-to-date on all payments while the repayment plan is in effect.

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What happens to my mortgage in Chapter 13 Bankruptcy?

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