Using Chapter 13 bankruptcy to stop foreclosure in Ohio

May 21, 2013

Using Chapter 13 bankruptcy to stop foreclosure in Ohio

Article provided by Debra Booher & Associates Co., LPA
Visit us at http://www.bankruptcyinfo.com

Given the number of people who are unemployed in Ohio and throughout the United States, it is not surprising that many individuals have been unable to keep up with their mortgage payments. Contrary to what some people think, the banks and mortgage lenders typically want to avoid foreclosing on a property, particularly given the cost and the amount of time that goes along with the foreclosure process.

Still, those facing the prospect of losing their homes are not always dealing with sympathetic lenders. That being the case, more and more individuals are trying to find out how filing for Chapter 13 bankruptcy protection might help save their homes from foreclosure.

How Chapter 13 works to stop a foreclosure

Individuals who file for Chapter 13 bankruptcy protection will have a chance to save their homes from foreclosure. Filings that are made under this chapter of bankruptcy allow for an individual to pay off the late mortgage payments owed over a period of time. It should be noted that although the filing can stop foreclosureand establish a plan for payment of the arrears, the individual will still need to make the current monthly payments while they pay off those arrears.

Qualifying for Chapter 13

The Bankruptcy Code states that in order for an individual to qualify for Chapter 13 bankruptcy protection, he or she cannot owe more than $360,475 in secured debt and more than $1,081,400 in unsecured debts. Furthermore, the individual seeking bankruptcy protection must have enough disposable income to be able to make payments as required under a three-to-five year plan.

The benefits that can come from filing Chapter 13 bankruptcy are substantial. For instance, an individual who files can expect:
-The immediate cessation of all debt-collecting activities by creditors and bill collectors
-A calmness and a peace of mind knowing that a positive step is being taken
-All remaining eligible debts to be discharged once the repayment plan period is over

For most people, filing for Chapter 13 bankruptcy protection is an option worth considering because it could possible save their home from foreclosure and give them a fresh financial start. Making the monthly mortgage payment will likely be a lot easier without having to worry about making payments on unsecured debts.

Those who are facing possible foreclosure and would like to learn more about how they can save their home by filing for bankruptcy protection should speak with a bankruptcy attorney.