Chapter 13 Bankruptcy – Saving Your House

Chapter 13 bankruptcies are designed for individual consumers who either wish to or need to repay some or all of their debts. If you are trying to save your home but are behind on your mortgage, or make too much money to file a Chapter 7, you should consider a Chapter 13. In a Chapter 13, you can usually:

• Stop foreclosure proceedings or car repossessions
• Repay the arrearage on your mortgage or your car loan over a five year period
• Eliminate your second mortgage if your house is worth less than what you owe on the first mortgage
• Pay unpaid taxes over a five-year period

The attorneys of Madoff & Khoury have decades of experience helping individuals and companies take full advantage of their debt relief options. Contact us for a free consultation.

Answers to some frequently asked questions

How does Chapter 13 save my house from foreclosure?
The filing of a Chapter 13 petition at any time before a foreclosure sale stops the sale. Individuals in Chapter 13 then file a Plan with the Court that provides for the repayment of your mortgage arrears over a 3-5 year period. For example, if you are behind $30,000 on your mortgage, you can generally file a plan that calls for repayment of that amount at the rate of $500/month for 60 months. You would also have to resume making current mortgage payments.

I have heard that you can eliminate second and third mortgages in Chapter 13. Is that true?
Sometimes. If the value of your house is less than the amount you owe on the first mortgage (including any arrears), then your attorney can file a motion with the court asking that the junior mortgage (or other liens, like real estate attachments) be eliminated.

How are unpaid taxes handled in a Chapter 13?
Taxes that cannot be discharged in bankruptcy, such as unpaid meals taxes, sales taxes or payroll taxes or recent income taxes can be part of a debtor’s 3-5 year plan.

• Over 20 years of bankruptcy law experience, including Chapter 7, Chapter 11, and Chapter 13
• Appointed by the U.S. Department of Justice as a Chapter 7 Trustee for Massachusetts since 1997, overseeing approximately 600 bankruptcy cases per year.
• Named every year since 2005 by the publishers of Boston Magazine as a Massachusetts Super Lawyer, representing the top 5% of lawyers in Massachusetts.
• Featured bankruptcy analyst on FOX News Boston
• Quoted in bankruptcy-related articles in the New York Times, Boston Globe, Boston Herald, Providence Journal, and others
• Member of the American Bankruptcy Institute
• Frequent lecturer for Massachusetts Continuing Legal Education, educating other attorneys on bankruptcy law
• Enjoys the highest “AV” rating by Martindale-Hubble, a national attorney peer review firm

Competent, Compassionate Advice

At Madoff & Khoury, LLP, we pride ourselves on providing straightforward, compassionate advice. The only way to be sure of your options is to call us at 508-543-0040 for a free consultation in our Foxborough, Massachusetts offices.