Homeownership dreams shouldn’t end in foreclosure—Chapter 13 bankruptcy offers a lifeline for steady-income filers. This “wage earner’s plan” reorganizes debts into affordable payments, halting evictions and repossessions via automatic stay. With rising mortgage delinquencies (up 20% in 2025), our affordable services at Justice Bankruptcy connect you to local attorneys for seamless protection. Here’s how Chapter 13 bankruptcy saves homes.
Key Benefits of Chapter 13 for Homeowners
- Cramdown Mortgages: Reduce car loan balances to current value.
- Cure Arrears: Spread missed payments over 36-60 months.
- Protect Equity: Keep non-exempt assets unlike Chapter 7.
- Vs. Chapter 7: Ideal if over income limits but under $2.75M in debt.
Our $100 consultation uncovers if this fits your situation.
Navigating the Chapter 13 Repayment Plan
- Proposal Drafting: Budget-based plan (50-100% debt repayment).
- Court Confirmation: Trustee reviews; we prep docs online.
- Ongoing Compliance: Monthly payments via wage garnishment.
- Completion: Remaining unsecured debts discharged after 3-5 years.
Case Study: A client saved their $400K home by curing $50K arrears—100% success like all our cases.
Foreclosure Myths and 2025 Updates
Myth: It delays but doesn’t stop foreclosure.
Truth: Automatic stay buys time; recent laws extend protections for COVID-era debts.
Conclusion: Don’t lose your home—Chapter 13 bankruptcy turns the tide. Contact Justice Bankruptcy for a free intro session and local attorney referral. Empower your financial future now.