Being behind on your payments can be hard, but few things are harder than potentially losing your home. Bankruptcy can seem like a last resort, but it may be the best way to keep a roof over your head.

Approximately one resident in the Naperville area is evicted every two days. If there’s a chance that person could be you, make sure you know your options before it’s too late. Filing for Chapter 13 bankruptcy could keep your house from entering foreclosure.

Protecting assets

If you can show that you’re able to afford a payment plan, then you may be looking at an answer to your troubles. Chapter 13 may not be a full reset like Chapter 7, but you could receive immediate protection against collectors while you formulate a plan for paying off outstanding dues on your house.

Due process

Chapter 13 can be an involved system, so make sure you understand what’s to come:

  • Payments: You’ll likely need to have the disposable income to continue meeting your agreed-upon payments. There isn’t much incentive for lenders to make a deal if you can’t keep up your end of the agreement.
  • Arrears: You may have to pay back all the money you owe within a specific time frame. Repayment plans usually last between three and five years, so arrangements could require you to catch up in that time frame.
  • Mortgages: If you used your home for additional mortgages, you might be able to strip them off. When the value of your home is less than what you owe, you could remove some of your junior loans.

Know what to expect in a Chapter 13 filing, and you could be on your way to keeping the home you worked so hard to get.