It’s common for homeowners to be under a lot of pressure when faced with foreclosure, which can lead to many homeowners making decisions that won’t be beneficial to them. Suppose your lender is unwilling to negotiate loss mitigation options with you or are not interested in any of those options. You can file for bankruptcy to stop foreclosure.

Filing for chapter 13 bankruptcy is known to offer many benefits. It’s most common with homeowners who are unwilling to let go of their homes. Many processes are involved in filing for bankruptcy, and provided you have multiple debts; it can be more tedious. However, your lawyer will be the one going through the process for you. Some of your debts will be discharged, and some will be rated ‘unsecured debts.’ This will grant you some relief and reduce your burden.

With chapter 13 bankruptcy, your loan agreement will be modified to make it easier for you to catch up. Provided you have decided to hold on to your home and make payment regularly, and you will be able to reconstruct a new repayment plan. The repayment plan usually ranges between 3 to 5 years and will help you spread out your loan (s). If it’s well negotiated, you can be left with a $90 per month payment for your mortgage, and that makes it so easy to catch up.

Chapter 13 bankruptcy also gives you a more extended period of relief. From the day you filed for bankruptcy to the day, your new repayment plan comes into effect. This will help with the pressure homeowners face when going through foreclosure, and you can have more time to consider your next step of action. Having your home foreclosed will damage your credit score, and you will still lose your home. However, chapter 13 bankruptcy will do less damage, but you will yet have your home.