Should I save my house?
Filing a Chapter 13 Bankruptcy case is a great tool for saving your house if you have fallen behind on mortgage payments due to a temporary financial setback. It allows you to formulate a Plan that re-pays the missed mortgage payments over a period of up to five years and stops foreclosure proceedings.
However, saving your house may not be in your best financial interest. If the value of your house is less than what you owe the Bank it may make sense to file a Chapter 7 liquidations case and let your house go.
People are emotionally tied to their houses, but this emotional tie can break you financially. If you can rent a house for significantly less than your mortgage payment, taxes, insurance and maintenance, you will be able to pocket that money every month. These savings can be used for your children’s education, a vacation, an unexpected emergency or for investment to further increase your net worth.