Falling behind on your mortgage or other secured debts can be extremely stressful, and catching up can sometimes seem impossible. Fortunately, bankruptcy law provides powerful tools borrowers can use to avoid default and make up arrears on secured debts. Below are a few common questions you might have about chapter 13 bankruptcy.

Answers to Common Questions About Chapter 13 Bankruptcy Law

How does chapter 13 bankruptcy work?

Chapter 13 bankruptcy is designed to give borrowers the opportunity to make up arrears on secured debts through a court-managed payment plan. These plans typically take three to five years to complete, after which your accounts will be considered current.

Can the lender foreclose on my house during chapter 13 bankruptcy?

bankruptcy law

Filing for bankruptcy triggers an automatic stay, which puts an immediate stop to all collection activity. This includes letters and phone calls, as well as foreclosure and repossessions. As long as your bankruptcy payments are current, the lender won’t be able to foreclose on your home.

Will the court seize my assets?

If you file for chapter 7 bankruptcy, which eliminates unsecured debts, the court may seize some of your assets to pay back your creditors. However, chapter 13 bankruptcy ensures past due amounts are paid, so you won’t lose any of your belongings at all.

How do I qualify for chapter 13 bankruptcy?

Qualifying for chapter 13 bankruptcy involves a detailed analysis of your finances to prove that you have the resources to keep up with your monthly payments and all your other debts. This makes it best for borrowers whose financial difficulties were caused by job loss or another temporary situation.


If you’ve fallen behind on your debts, the attorneys at Riley, Resar & Associates, P.L.L. will help you find the path back to solvency. They’ve been serving borrowers throughout Lorain, OH for over 30 years, and have an in-depth understanding of bankruptcy law. Visit their website for more on their bankruptcy law services, or call (440) 244-5214 to schedule a consultation.