Situations that lead to Filing Chapter 13 Bankruptcy
The number one reason people file a chapter 13 is to save their home from a foreclosure sale. The sale is because They have gotten behind on the payments, or something to do with the property taxes.
The chapter 13 will force the mortgage company to stop the sale and start taking your payments again and through the chapter 13 payments accept the money that you are behind. With saving the house your credit card debts can be discharged.
The chapter 13 is only a plan you will still need to continue with the normal house payments. If all of this is because of a loss of income and you still can’t make the house payments. the chapter 13 can be converted to a chapter 7, which means surrendering the house and all credit card debts. None of us want to lose our house but with the chapter 7 now you can start rebuilding your credit so that when the income is back go buy another house.
