Legal Solutions for You,
Your Family & Your Business

File for Chapter 13 Bankruptcy

In this kind of bankruptcy, you come up with a plan for making your regular monthly payments and paying off the arrears. If the bankruptcy court approves your plan, you’ll have three to five years to make the payments. Chapter 13 bankruptcy also reduces or eliminates your total debt load, making your mortgage more affordable in terms of your overall budget. In some situations you can get rid of a second or third mortgage entirely, reduce your first mortgage to the market value of the house, and even reduce the interest rate on your first mortgage to just a little above prime rate. Chapter 13 bankruptcy is discussed in Ch. 5.