When filing for Chapter 13 bankruptcy, one of your first concerns might be over whether you will lose your house during the proceedings. Well, you can relax. Unlike in Chapter 7 bankruptcy where your assets are sold to repay your debt, Chapter 13 provides options for you to keep your house. And, while keeping your home is one of the biggest advantages of a Chapter 13 filing, it also provides many other benefits.


Learn more about Chapter 13 and what options you may have to retain possession of your home. If you meet the requirements to file a Chapter 13 case and you are interested in pursuing bankruptcy, reach out to a qualified bankruptcy lawyer to start the process.

What is Chapter 13 Bankruptcy?

In Chapter 13 bankruptcy, you will need to reorganize your finances under the supervision and approval of the courts. You will submit and follow a repayment plan to repay any outstanding debts within three to five years. This means that you must be employed or show a source of income for repaying the debts according to your repayment plan. Because you are using your disposable income to pay your creditors, you will not need to sell off your assets – or your home — to pay off the debt.


Stay Current on Housing Payments

The easiest way to keep your home after filing for Chapter 13 bankruptcy is to stay current on your mortgage payments. In most cases, you will continue to make your monthly mortgage payments directly to your lender. However, in some cases, you might submit your payment to the court-appointed Trustee and he or she will make the payment to your lender. Paying the Trustee instead of your lender directly can result in added fees, so, if possible, it’s best to pay your mortgage lender directly.


Repaying Past Due Payments

If you are behind on your mortgage payments when you file Chapter 13 bankruptcy, you will need to work with the court to ensure you are caught up on past-due payments by the end of your repayment period. You will not have to repay all of your past due bills at once – you can make them up throughout your repayment plan. 


How to Stop a Foreclosure

If you are already facing foreclosure when you file for Chapter 13, you still have some options as the court will put a hold on the foreclosure. As long as you stay current on your mortgage payments and pay off any past due payments through your repayment plan, and you demonstrate that you can afford to pay for any nonexempt equity, the lender will not be able to foreclose on your house. 


Contact a Bankruptcy Attorney

If you are worried about losing your house during Chapter 13 bankruptcy proceedings, it’s recommended that you first talk to a bankruptcy attorney. Your lawyer can assess your situation and recommend the best course of action for you to take to help you keep your home. 


If you’re uncertain if you should file Chapter 13 or Chapter 7, ask your bankruptcy lawyer for advice. Your attorney will be able to go through the pros and cons of each and help you make the best selection based on your situation.

We have been helping people in the Oklahoma City metropolitan area face and overcome challenges for more than 29 years. Contact us today so we can help you get your life back in order.


To learn more about filing Chapter 13 bankruptcy, it’s crucial to hire an experienced attorney to help you through the process. Don’t let debt ruin your life. Call (405) 529-9377 for a free case review.

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