Q: I'm behind on my mortgage payments due to being laid off. Will I lose my house if I file Chapter 7? Should I do a
Chapter 13?
A: Many factors affect the answer but it depends on how much equity you have in your house and how much you are behind.
A:
Filing for bankruptcy when you’re behind on the mortgage creates some risk better not left to the discretion of the lender. Your lender may either demand that you get caught up right away or ask the court for permission to start the foreclosure process.
It's wise to talk to an experienced bankruptcy attorney to discuss either getting caught up on payments before filing the chapter 7 or to consider a chapter 13 bankruptcy which would allow you to repay arrears over a three or five year period.
A: You can catch up on your missed mortgage payments by filing for Chapter 13 bankruptcy. If you file for Chapter 13 bankruptcy, your lender can no longer proceed with the foreclosure, and you can cure your default.
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