You may have received demand letters from your mortgage company informing you that you are months late on your mortgage, or perhaps, that you owe additional sums to your escrow account.  Next, you receive a notice that your entire loan balance has been "accelerated," and is now due; or worse, you receive a "Notice Of Foreclosure" or "Substitute Trustee's Sale."  To save your home, you need to act promptly--the time for delay is over.  In a majority of cases, your home can be saved!  First, you must determine why you got behind in the payments in the first place.  Was there a temporary expense that put you behind?  Was it a change in your employment?  Fortunately, Chapter 13 bankruptcy will allow you as many as 5 years to catch up on your mortgage arrears and therefore save your home.  In Chapter 13, you will create a "plan of reorganization" or simply a "plan," which is a debtor's proposal concerning how he will manage his debts and cure the arrears.  In the plan, you show the Bankruptcy Court how you will pay your underlying monthly mortgage note, your household expenses, your car notes, and perhaps lay a little aside for emergencies.  Any remaining monthly income will be used to catch up on the back mortgage payments.  If there is any money after making these catch up payments, then that money will go to pay "unsecured debts," usually credit card and medical bills.

In sum, a simple test to determine whether a Chapter 13 can help save the home is this: Ask yourself: "Can I make my current mortgage payments and catch up on the arrearages within 60 months?"  If the answer is "yes," then please allow us to assist you. Chapter 13 can save your home!