Can I Save My House Through Bankruptcy?

Yes, you can save your house through bankruptcy, only through a Chapter 13 bankruptcy. And so here’s how it works in a nutshell: Let’s just say your house payment is $1,000 a month and you’re six months behind on the house payment, so there’s $6,000 in arrears. Here’s what Chapter 13 lets you do: it lets you pay back that $6,000 over the course of five years. So your normal $1,000 house payment doesn’t change, but that $6,000 can be paid off at $100 per month ($6,000 ÷ 60). And so your house payment goes to $1,100 per month; it goes up a little bit to cover the arrearage amount. So if you can afford, in this example, $1,100 per month, yes, we can save your house from foreclosure by using a Chapter 13 bankruptcy. There are some other moving parts that are attached to that to make sure that the plan is feasible. If you come into my office and you tell me what your income is, I will make sure that we file a plan that is feasible. If it’s not feasible, we’ll let you know what your other options are.