Mortgage Arrears And A Chapter 13 Bankruptcy

Posted by Col Ovik on December 9, 2021 at 7:30 AM
Col Ovik

shutterstock_1802275786Getting behind on your mortgage payments is not uncommon, but when the amount of the arrears (the amount you owe from the missed payments) is substantial it can be hard to get caught back up with your mortgage payments. There are many reasons people get behind on their payments: temporary job loss, divorce, medical issues. And sometimes working with the mortgage company to make arrangements to repay the missed payments can be daunting and frustrating especially if the mortgage company has already started the foreclosure process.

A chapter 13 bankruptcy can help with repaying mortgage arrears. The amount of the missed payments is not discharged or forgiven in the chapter 13 bankruptcy because the debt is secured to the debtor’s homestead. Instead, the chapter 13 bankruptcy allows the debtor to repay the mortgage arrears in affordable payments for the debtor. The chapter 13 bankruptcy does stop the foreclosure proceeding but it is important that the debtor stays current on their chapter 13 payment and their current mortgage payment.

If the debtor falls behind on their mortgage payments the mortgage company can file a motion for relief in the case and continue with their remedies under the law including foreclosure.  If a debtor falls behind on their chapter 13 plan payments the case can be dismissed.  Chapter 13 plan lengths can vary but cannot be longer than 5 years. Since all mortgage arrears are required to be paid off during the life of the plan sometimes it makes sense to extend the plan length to the maximum length allowed by law. This way the debtor is able to keep the trustee payment to an affordable monthly payment.


A chapter 13 bankruptcy can be a great way to save your homestead from foreclosure but a debtor does have to be careful that they stay current on both their mortgage payments and their chapter 13 plan payments. Contact the attorneys at LifeBackLaw and see us at  and let us help you get your life back.

Topics: Chapter 13 Bankruptcy

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