15. My Home Is In Foreclosure, How Can A Bankruptcy Help Me?

A Chapter 7 is a liquidation. A Chapter 7 bankruptcy will discharge the debt owed on the home, but the debtor will lose the home in foreclosure. In order to keep the home, the debtor will need to file a Chapter 13 bankruptcy which can force the creditor to accept payments. The problem is, the debtor must immediately start paying the regular monthly mortgage payment plus bring the mortgage arrears current over a period of up five (5) years. That can be very difficult for most consumer debtors.