Chapter 13 bankruptcy certainly comes with a lot of benefits — not the least of which is the power to stop foreclosure proceedings from moving forward. This article will discuss Chapter 13 proceeding and some of the most important benefits that people suffering from debt problems in New Jersey can receive relating to their homes by initiating the process.
The ability to stop the foreclosure process, save your home and save all the money you have paid into your mortgage are some of the best benefits of Chapter 13 proceedings. Homeowners can file for Chapter 13 and get protection from the foreclosure process, in addition to receiving approximately three to five years within which they can pay off their late mortgage payments.
Chapter 13 proceedings will also allow individuals to propose a sale plan for their homes over a period of time. This allows individuals to keep at the very least their homestead exemption amounting to $20,200 per owner in equity. If a husband and wife own the home together, the amount is $40,400. In addition, Chapter 13 can be used to discharge a second mortgage if the value of the home falls under what the mortgage owner still owes on the first mortgage. In addition, individuals can discharge part of their mortgage debt relating to multi-family homes and investment and commercial properties.
The Chapter 13 bankruptcy process can benefit many people in a lot of different circumstances. New Jersey residents who are falling behind on their mortgages or suffering from real estate debt related problems may want to discuss the various benefits of Chapter 13 with an experienced bankruptcy lawyer.