This page was written, edited, reviewed & approved by Emil J. Fleysher following our comprehensive editorial guidelines. Emil J. Fleysher, the Founding Partner, has 15+ years of legal experience as a bankruptcy attorney. Our last modified date shows when this page was last reviewed.
Falling behind on mortgage payments can feel overwhelming. If you're worried about losing your home, you're not alone. Many homeowners struggle with mortgage arrears after financial setbacks like job loss, illness, or rising expenses.
Fleysher Law Bankruptcy and Debt Attorneys help homeowners save their houses from foreclosure.
Chapter 13 bankruptcy is a form of bankruptcy that helps people catch up on past-due debts without losing their assets. It's often called a "wage earner's plan" because it works best for people with regular income.
Unlike Chapter 7, Chapter 13 does not involve selling your property. Instead, it lets you repay debts through a court-approved repayment plan.
This plan lasts 3 to 5 years. You make a monthly payment based on your disposable income. The payments go to a bankruptcy trustee, who sends payments to creditors based on the rules.
The plan helps you catch up on secured debts like mortgage arrears while managing unsecured debts like credit cards and personal loans.
In Chapter 13, you don't have to give up your home or car. Instead, you reorganize your debts to make regular payments over time. This is why it's called a reorganization bankruptcy.
The court reviews your financial situation and approves a plan that fits your budget. You pay off past-due payments, stay current on new ones, and keep important property.
This option helps many people keep their homes, avoid foreclosure, and fix their credit scores over time. It's also useful if you've been denied a mortgage modification or other loan modifications.
A knowledgeable bankruptcy attorney can explain how Chapter 13 compares to other bankruptcy options and help you make the right decision.
To qualify, you must have regular income and meet debt limits set by the bankruptcy court. Your debts must be below a certain level for secured debts and unsecured debts combined.
You also need to be current on tax filings and not have had a recent bankruptcy filing dismissed. The court will expect you to show a plan that covers priority debts and follows compliance with bankruptcy laws.
Chapter 13 is a good fit if you want to protect your primary residence, stop foreclosure procedures, and handle mortgage arrears without paying a lump sum.
A quick review with a bankruptcy attorney can confirm if you meet the eligibility criteria.
Your repayment period depends on your income. If your income is below the state median, your plan may last three years. If it's above, the plan may go five years.
During this time, you make monthly payments to a trustee. These payments go toward your past-due mortgage payments, secured debts, priority debts, and a portion of your unsecured debt.
The goal is to create a structured repayment plan you can afford. This lets you catch up on mortgage arrearages, stop the foreclosure process, and maintain your current mortgage payments.
A well-built plan must also meet court approval and fit your financial reality.
When you file for Chapter 13, the court puts a stop to most collection efforts, including foreclosure actions and lender contact.
As soon as you file your bankruptcy petition, the court issues an automatic stay. This order stops the foreclosure proceedings, even if the lender has sent a foreclosure notice or scheduled a foreclosure sale.
The automatic stay blocks all collection efforts, including prerecorded messages, letters, and legal actions from the mortgage company or mortgage servicer.
It gives you temporary relief while your case is being reviewed. This can give you time to prepare a plan and fix your mortgage arrears.
Even if your foreclosure sale is just days away, filing for Chapter 13 can stop it. The key is to file before the sale happens. Once the bankruptcy court accepts your petition, the sale must be paused. The lender cannot continue with the foreclosure proceedings until the court allows it.
This pause gives you time to work out a repayment plan and avoid losing your home. But you must act fast. Talk to an experienced bankruptcy attorney right away if you've received a notice of default or a sale date.
Chapter 13 may also protect co-debtors or co-owners. If they are on the loan or property with you, the automatic stay might stop collection efforts against them as well.
This protection depends on your specific case and the bankruptcy rules. It's stronger in cases involving consumer debt, like credit cards or personal loans. If the home is owned jointly, your plan may help both parties avoid foreclosure. A foreclosure attorney can review your case and explain your options.
The core of a Chapter 13 plan is catching up on overdue mortgage payments in smaller steps.
Chapter 13 lets you repay past-due mortgage payments through the plan. Instead of paying everything at once, you spread the Mortgage Arrearages across the 3- to 5-year period.
This breaks the debt into manageable payments. It also stops the foreclosure action as long as you stick to the plan. Your monthly payment includes part of the mortgage arrears and your current mortgage. Both are handled in one bankruptcy repayment plan.
While repaying arrears, you must also make current mortgage payments on time. The court expects you to stay current on these ongoing mortgage payments. If you fall behind again, the lender can ask the court to lift the bankruptcy protection and resume the foreclosure proceedings.
A good plan makes both past-due payments and regular mortgage payments affordable. It helps avoid more financial strain in the future.
Following your plan is critical. Missing payments can put you back at risk of losing your home. Set up auto-pay or reminders to stay on track. Avoid new credit cards or additional debt while in the plan. Work with a bankruptcy lawyer to ensure your repayment plan is realistic and supports your long-term financial stability.
Chapter 13 gives you tools to stop foreclosure and gain financial control. Here’s how it helps.
The biggest benefit is saving your home. Chapter 13 lets you fix mortgage arrears over time, stop the foreclosure proceedings, and protect your primary residence.
You don’t need a mortgage modification or help from your mortgage lenders. The court-approved plan gives you legal protection. You stay at home while making regular payments under the plan.
Lenders often demand full payment of arrears before stopping foreclosure proceedings. Most people can’t afford that. Chapter 13 lets you break that amount into small monthly payments over time. No lump sum is required.
It’s a better option than trying to negotiate loan modifications or facing court on your own.
If you have home equity, Chapter 13 helps protect it. The plan stops foreclosure and gives you time to pay what you owe. You keep the equity instead of losing it in a forced sale. The plan also helps you use bankruptcy exemptions to protect your home under state law.
Chapter 13 also helps with other debts. You can combine credit card debt, personal loans, and priority debts into one monthly payment. This makes budgeting easier and reduces stress. Instead of dealing with multiple creditors, you pay one amount through your plan.
Avoiding errors is key to success. Here are some mistakes people make.
Waiting until the last minute can backfire. If the foreclosure sale happens before you file, it's too late to stop it. As soon as you receive a foreclosure notice, talk to a bankruptcy attorney. Filing early gives your lawyer time to prepare a strong bankruptcy petition and plan.
Your repayment plan must be realistic. If it’s too tight, you may miss payments. Be honest about your living expenses, income, and debts. A plan you can’t afford will not succeed. Use your credit report, pay stubs, and bills to build a solid plan.
Chapter 13 helps with past-due payments, but you must still make current mortgage payments. Missing new payments puts you at risk again. It can lead to a failed case and foreclosure. Stay in contact with your bankruptcy trustee and keep your records updated.
While powerful, Chapter 13 isn’t right for everyone. Here are some situations where it may not work.
If your income is too low, the plan may not be feasible. You must show you can afford plan payments and your current mortgage. Without enough Disposable income, the court may reject the plan. Your lawyer can help you explore other bankruptcy options if needed.
Chapter 13 has debt limits. If your unsecured debt or secured debts are too high, you may not qualify. A full review of your financial situation is needed before filing. Your lawyer may suggest alternative legal options depending on your financial situation.
Regular income is required. If your job is unstable or your income changes often, it may be hard to keep up. A failed plan means wasted time and money. It can also make it more difficult to prevent foreclosure in the future. Your lawyer can help assess your income history and give honest advice.
Can I stop foreclosure with Chapter 13 even if I filed before?
Yes, but the court may limit the automatic stay. Talk to a bankruptcy attorney quickly.
Will Chapter 13 lower my monthly mortgage?
No. Chapter 13 helps you manage arrears but does not modify your loan terms unless you separately negotiate a mortgage modification.
Can I include other debts in my repayment plan?
Yes. You can include credit cards, personal loans, and more in one payment.
What if I miss a plan payment?
Tell your lawyer right away. You may be able to adjust the plan or catch up.
How long does the bankruptcy stay on my credit report?
Chapter 13 remains on your credit report for seven years, but you can start rebuilding your credit score sooner with timely payments.
If you're facing foreclosure, don’t wait. Fleysher Law Bankruptcy and Debt Attorneys can help you use Chapter 13 to catch up on mortgage arrears and keep your home.
Our team has years of experience helping people through the bankruptcy process. We create manageable repayment plans that meet the court’s standards and fit your budget.
Whether you’re dealing with missed mortgage payments, collection efforts, or too much credit card debt, we can help. You’ll work with an experienced bankruptcy attorney every step of the way.
Contact us today for a free case consultation. We’ll review your financial situation and help you stop foreclosure before it’s too late.
Emil specializes in consumer bankruptcy, debt settlement, and mortgage modification, offering a holistic approach to solving mortgage and debt problems. Emil listens to clients, understands their circumstances and goals, and helps them make the right choices by presenting all options and contingencies.
He is dedicated to helping South Floridians regain their financial freedom from overwhelming debt caused by high interest credit cards, bad mortgage loans, and uninsured medical expenses.
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