Bankruptcy Can Help Those Falling Behind on Mortgage Payments

open letter with overdue notice sticking out
If you are falling behind on mortgage payments, you may wonder what options you have to avoid foreclosure. Whether your financial situation is temporary or will take a little longer to recover from, filing for Chapter 13 bankruptcy can help those falling behind on mortgage payments.

Chapter 13 Bankruptcy Allows You To Catch Up on Mortgage Payments

Consider this: During the economic downturn, you lost your job. You went from making a decent salary and paying your bills on time, to owing thousands of dollars on your mortgage and running up your credit card with necessities. You’re only a few missed payments away from foreclosure and now unsure what your next move is. You have recently secured a new job and you hope to get back on your feet soon. But what can you do in the meantime to stay above water? Chapter 13 bankruptcy allows you to catch up on mortgage payments as well as other late bills. Over three to five years, you can:
  • Catch up on delinquent mortgage payments
  • Temporarily stop foreclosure
  • Make up late car payments
  • Pay for late taxes
  • Catch up on child and spousal support
  • Pause student loan payments
Also, you will have to complete credit counseling which will allow you to see all options for your financial future, create a plan to develop a budget, and get you back on track. Remember, each lender has specific terms and conditions on how many late payments you can have before foreclosure occurs. If you aren’t sure where you stand, review your mortgage contract and speak with your lender. *Note: If the financial ramifications of COVID-19 ended up resulting in foreclosure or late payments on your mortgage, know that the federal government put protections in place for relief options during this trying time. However, if you are not covered under the CARES Act Mortgage Forbearance, Chapter 13 bankruptcy may be the right choice for you.

Bankruptcy and Late Mortgage Payments: The Jones Law Firm

If you have fallen behind on your mortgage payments and fear foreclosure, filing for Chapter 13 bankruptcy can help you avoid losing your home. Our bankruptcy attorney, Michael Ryan Jones, will review your specific case to determine if a repayment plan is possible for you. Contact The Jones Law Firm for a free consultation about how we can help and whether Chapter 13 bankruptcy is right for you. With offices in Reynoldsburg, Ohio, The Jones Law Firm works with clients in and around Columbus and throughout central Ohio.