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chapter 13?? please help answer

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wanda mason

What is the name of your state? nc
i would like to know does chapter 13, help with everything on a persons credit or just what you put down? do you need to try to pay some of your mortgage or do usually the plan is worked out?
basically just explain to me how it works??????? i want to keep my home.


Senior Member
Filing any sort of bk does nothing to help your credit. If you are going to try and save your house, you'll need to be current and stay current on your mortgage regardless if it is a chapter 7 or a chapter 13.
First of all, are you sure a Chapter 7 won't work? Most states allow you to exempt a certain amount of equity in your home. If you are under the amount in your state, you can keep paying the mortgage and wipe out unsecured debt. In a Chapter 13, you keep your assets and stay current on secured obligations and work out partial repayment plan of unsecured debtors.


hello wanda, as far as filing chapter 7 or 13, that usually depends on your assets. now, as far as the mortgage is concerned, if you were to file a chapter 7 you'd have 3 choices *unless there is a trustee that causes problems*, you can surrender, reaffirm the debt or retain, when you retain, you choose to keep the property without reaffirming and continue to make the payments to the mortgage company, when you reaffirm you sign a reaffirmation agreement meaning you are re-committing yourself to the debt, this reaffirmation will be filed with the bankruptcy court and you have 60 days from the day it was filed with the court to recind *spelling?*. some mortgage companies will in the case of a reaffirmation eve work with you on reaffirming with lower terms, meaning lowering the payments and the interest rates but that's SOME. chapter 13, there are what i call inside the plan states where you would pay your mortgage through the trustee and he would in turn pay the mortgage company, then there is outside the plan, that means the arrearages if any will be paid to the mortgage company through the trustee and the regular monthly mortgage payments would be paid by you to the mortgage company. normally in a chapter 13 you continue to pay your debt, normally with lower payments, you make your payments to the trustee and he pays the creditors. as far as the house goes, now there are some states where in a chapter 13 you can still surrender your home if this is your wish but that's rare from my experience. hope i didn't cause too much confusion and good luck.

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