14 Options to prevent foreclosure
Bankruptcy Chapter 13
Stop Foreclosure immediately and allows you to repay missed mortgage payments over 3-5 years under court protection.
Stop Foreclosure and Repay What You Owe Over Time While Keeping Your Home
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is a powerful legal tool that allows homeowners to stop foreclosure immediately and set up a court-approved repayment plan to catch up on missed mortgage payments over 3 to 5 years.
Unlike Chapter 7, which wipes out debt but often results in losing the home, Chapter 13 is designed to help you stay in your home while managing all your debt under court protection.
Who Should Consider Chapter 13?
- Want to save their home from foreclosure
- Have steady income but need time to catch up
- Were denied for loan modification or other options
- Have multiple debts and need an organized payment plan
- Want legal protection from creditors, lawsuits, and collections
- Hire a bankruptcy attorney and file a Chapter 13 petition in court.
- Upon filing, the court issues an automatic stay, which immediately halts any foreclosure activity.
- You and your attorney propose a monthly repayment plan based on your income, debts, and assets.
- The plan includes:
- Your regular monthly mortgage payment
- A portion of your past-due mortgage arrears
- Payments toward unsecured debts (credit cards, medical bills, etc.)
- As long as you make payments consistently, you keep your home and avoid foreclosure.
Benefits of Chapter 13
- Immediate stop to foreclosure and legal protection
- Keep your home while repaying arrears slowly
- Up to 5 years to catch up on missed mortgage payments
- Consolidates debts into one affordable monthly payment
- Stops wage garnishments, lawsuits, and collections
- Can also resolve unpaid property taxes or car repossession
Considerations & Risks
- You must have enough income to make the monthly plan payments
- The plan is court-supervised and strict—missing payments can cause dismissal
- Remains on credit report for up to 7 years
- Requires legal filing, attorney, and trustee oversight
What You’ll Need to File
- Proof of income (pay stubs, benefits, self-employed ledgers)
- Most recent tax returns
- Full list of debts and assets
- Mortgage statements and past-due notices
- Budget showing monthly income and expenses
- Filing fees or court-approved payment waiver
Timeline
- Attorney consultation and document prep: 3–7 days
- Filing and automatic stay: Immediate
- First trustee payment: Due within 30 days of filing
- Full plan duration: 36 to 60 months
Real Example
Angela in Los Angeles was 6 months behind on her mortgage and owed $45,000 in arrears. She filed Chapter 13, kept her 3-bedroom home, and paid just $750/month toward the arrears while continuing her regular mortgage payment. Foreclosure was canceled immediately.
Frequently Asked Questions
Q: Can I file Chapter 13 if my foreclosure sale is already scheduled?
🅰️ Yes, but time is critical. Filing even 24–48 hours before the sale can stop it—temporarily or permanently.
Q: Will I lose my home during Chapter 13?
🅰️ No—if you stick to the plan. You’re protected legally as long as payments are made as agreed.
Q: What happens to my credit cards and medical bills?
🅰️ They are included in the plan and often paid at a reduced rate—or eliminated entirely at the end of the plan.
Want to Save Your Home Using Chapter 13?
We work with trusted, experienced bankruptcy attorneys and foreclosure defense professionals. We can:
- Help you determine if you qualify
- Refer you to a licensed Chapter 13 specialist
- Coordinate last-minute filings before auction
- Help you prepare documents, budgets, and timelines