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REASON # 1 You may be able to save your home from foreclosure as you may be able to cure your mortgage arrears - retain your home.
If a debtor is behind in his or her mortgage payments and facing a foreclosure, Chapter 13 can permit
the debtor to cure the defaults through a repayment plan while making regular monthly mortgage
payments which will ultimately allow the reinstatement of the mortgage.
Under the Bankruptcy Code
provisions which govern chapter 13, mortgage arrears are paid as part of the Chapter 13 plan payment
through the Chapter 13 trustee while the debtor commences regular monthly mortgage payments post
petition (after the filing).
Debtors who use Chapter 13 for this purpose will be able to cure the
amounts that they are behind in their mortgage in exchange for being monitored to be certain that
they do not fall behind on their mortgages after filing.
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