Chapter 13 bankruptcy offers relief to homeowners who need time and assistance to organize their finances and save their home. Depending on your financial situation Chapter 13 can be used to stop foreclosure, reduce payments, strip off, or eliminate, mortgage liens and reinstate delinquent and mortgages in arrears.

The most common way bankruptcy helps homeowners is by stopping a foreclosure and allowing the past-due mortgage arrears to be paid over a period of time. This is done by filing a Chapter 13 bankruptcy petition with our Akron Chapter 13 attorney which can allow an individual to resolve a mortgage arrearage over 5 years. In order to do this, the Chapter 13 bankruptcy must be filed prior to the sheriff’s sale.

Chapter 13 bankruptcy gives you the right to prioritize creditors and treat them differently depending on their importance. For example, if you have a mortgage debt along with significant other debt such as credit cards, the mortgage payments may be paid back before any other debts due to the importance of keeping your home to live. Additionally, the credit card debt can be eliminated if you do not have the ability to repay it and we can help you prove this to the court.

This option is a lot better than what an individual can do on their own or with a credit counseling agency which cannot re-classify and prioritize debts like we can do through Chapter 13 bankruptcy. Often, people who hire credit counseling agencies to help end up worse off in the end because they lack the ability to prioritize their creditors. Credit Counseling places try to pay off credit card debt but allow you to become delinquent on your mortgages resulting in lost homes. Our Chapter 13 attorneys will wipe out the credit cards, allowing you to just pay back the mortgage arrears and save the home while becoming debt free.

Even if you have previously filed Chapter 7 you’re eligible to file a Chapter 13 bankruptcy to stop a foreclosure. There is no time period to wait before filing Chapter 13 bankruptcy to stop a foreclosure on your home.

Chapter 13 bankruptcy in Akron and Cleveland, Ohio also helps people strip off unsecured mortgages such as second and third mortgages. If the homeowner has two mortgages on their property and the equity value of the property is worth less than what is owed on the first mortgage, the second mortgage can be stripped off the property and eliminated through Chapter 13. This could be a huge benefit because it means that you may stop paying your second mortgage and upon your completed Chapter 13 bankruptcy case, the second mortgage will be discharged. This is a great benefit to people whose house is worth less than what’s owed on the first mortgage.

Chapter 13 can help people with past-due property taxes, water bills, electric bills and other liens. Chapter 13 can offer a you up to five years to resolve your mortgage arrears. Chapter 13 bankruptcy in Akron can help stabilize your finances by reducing most other unsecured debt. Car loans can be reduced to a manageable monthly payment and spread over 5 years with the interest reduced to the current market rate. By lowering your car payment and getting rid of or reducing other debt, you have a better chance to repay your mortgage and keep your home and manage your household expenses.

Chapter 13 bankruptcy is a federal right and can be significantly beneficial to homeowners that have encountered a financial setback. Chapter 13 can stop foreclosures, reduce payments, strip off mortgage loans, eliminate other debt to make it easier to pay your mortgage, modify certain mortgages, stop late fees, reduce interest payments and offer a fixed monthly payment.