If you are like many people who have been forced to file for Chapter 13 bankruptcy protection, you may be doing so to avoid foreclosure.

In most cases, the value of your home is much less than what you still owe on it. When that is the case, you may decide that it is better to stop making payments and walk away from your home. Chapter 13 bankruptcy gives you the chance to keep your home by making reduced payments over a longer period of time.

Once you have successfully filed for Chapter 13 bankruptcy, there will be an automatic stop to the foreclosure process. Even if your home has already been slotted to be sold off at trustee auction, a bankruptcy petition can halt the process. Once this has been done, you will then work with your bankruptcy trustee to create a payment plan that is both acceptable to you and the court.

In the case of foreclosure, your bankruptcy plan will include mortgage payments, both missed and future, that you will need to pay on time. If you should fall behind on your payments while under bankruptcy protection, you may lose that protection over time.

Have questions about Chapter 13?  Contact the Malaise Law Firm to get answers from a Houston bankruptcy lawyer.