Many people in Washington D.C. and across the nation continue to struggle to make ends meet. Staying on top of all of the medical expenses, mortgage payments, credit card bills and other types of debt can be extremely overwhelming. At Ammerman & Goldberg Bankruptcy Law Office, we understand that people may not be able to continue making their mortgage payments while dealing with all of the other debt that has accumulated in their lives. While people who file for Chapter 7 run the risk of losing their homes through liquidation bankruptcy, Chapter 13 enables people to stop foreclosure and keep their homes.
During a Chapter 13 bankruptcy, people are able to consolidate their debt into an affordable payment plan that allows them to pay off their debt in three to five years. Homeowners create a plan with the lender, which allows them to continue making their mortgage payments in exchange for keeping their house. Not only does this alleviate the stress of having to find a new place to live, but homeowners may find that bankruptcy has advantages over foreclosure. A foreclosure indicates that the homeowner was unable to continue making payments on his or her home, while a bankruptcy shows that the borrower still made mortgage payments even after he or she filed for bankruptcy.