ABA Family Legal Guide

Consumer Bankruptcy

Saving Your Home

What about if I file under Chapter 13-how can I keep my home then?

To preserve your home under a Chapter 13 plan, you ordinarily must agree to continue your lender's lien on your home and to make the required ongoing monthly payments. You must also agree to pay any skipped payments (defaults) through your payment plan. Otherwise, you'll have to turn the property over to the lender.

It is possible that if housing values are greatly depressed, a lender might be willing to lower your monthly payments in order to gain some income and keep the house occupied. But don't count on it.