If your bank has started foreclosure (by filing Notice of Default) against your home because you are delinquent on your mortgage payments, Chapter 13 Bankruptcy may be your answer.

The filing of Chapter 13 automatically stops the foreclosure upon the filing in court of the petition.  Bankruptcy law allows that a Chapter 13 plan may provide for re-payment of past due amounts on a debtor’s mortgage over three to five years. You will not have to negotiate a loan modification to do this. Of course, current mortgage payments that come due after the Chapter 13 is filed will be maintained by the debtor.

SECOND MORTGAGE “STRIP DOWN”

Under very limited circumstances, you may be able to eliminate the second mortgage on your home.  You may also refinance or sell your home during the course of your Chapter 13 (subject to court approval).  You may decide that you would rather surrender your home.  If so, you may accomplish this in either Chapter 13 or Chapter 7 Bankruptcy.