February 9th, 2012 by Reed Allmand 
Many homeowners can relate to having an underwater mortgage or owing more on their home than what it’s worth. This can often make maintaining payments more difficult, not only on your home but on other financial obligations. If this is the case and you have more than one mortgage, Chapter 13 may be an option worth considering.
Chapter 13 bankruptcy restructures debt by setting up a repayment plan that usually lasts 3 to 5 years. This chapter is ideal for those who are behind on their mortgage payments and want to keep their home. This option is likely to be considered if you don’t qualify for Chapter 7 but meet income qualifications. Some homeowners are not aware that bankruptcy may help you keep your home. Usually, a homeowner considers a short-sale or simply walking away from their home, letting the lender foreclose on the property.
Chapter 13 can give you multiple advantages. If you have more than one mortgage it can eliminate or remove other mortgages, including liens on the property. As long as you complete your payment plan under bankruptcy laws, any liens against your property can be removed.
The repayment plan may include the amount you are behind on with your mortgage as well as other debts such as your car payment, medical bills, credit card bills and other obligations. You’ll make a monthly payment toward your debt based on your income and agreement made with the Bankruptcy Trustee. Since each situation is different, it is best to discuss the advantages of Chapter 13 and how they can work for you with a bankruptcy attorney.
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
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