Yes. A 13 allows you to pay back the arrears for three to five years at zero percent interest and/or a 7 allows you to escape liability.
Absent any proof and allegation of fraud, it can be. In a Chapter 13, as long as you can afford the regular ongoing payments, you can take 3-5 years to catch up. As long as the mortgage was taken out after 1994, then it is 0% interest and no late fees.
Keep in mind, that you must include all debts. Filing bankruptcy on a debt does not mean that it goes away. In most cases, like this one, the personal obligation will be discharged. In Chapter 13, your mortgage will continue and will not be discharged, but you can catch it up. In Chapter 7, it is discharged, but the lien remains on the house (pay it to keep it or let it go and walk away).
Talk to a local attorney for a free consultation.
[This communication is intended as general information and not specific legal advice, and this communication does not create an attorney-client relationship.]
In today's challenging economic times, foreclosures are up and many folks are behind on mortgage payments. Chapter 13 bankruptcy might help you keep the property and protect your equity even if the mortgage company previously accelerated the loan and declared the entire loan due.
You do not say whether you have equity in your home, and have current income.
Obtain a current market analysis or an appraisal to establish equity, which is the current value after deducting the costs of sale and lien an mortgage payoffs. Are you able to pay the taxes, insurance, upkeep and mortgage payments on a current basis? If not--or if chapter 13 is not feasible--you may wish to consider selling the property and paying off the bank.
Of course, there may be other options available to you such as mortgage modification or chapter 7 bankruptcy. Collect your mortgage payment information, current monthly income and expenses, and evidence of current property value and consult with a NJ bankruptcy attorney about your complete options.
(This answer is offered for information and guidance purposes, and is not legal advise. No attorney-client relationship is created through emails alone.)
In a Chapter 13 case yes. You can pay your arrearage payments on your mortgae thru the Chapter 13 plan.
NOTE: These above statement is an opinion based upon the facts given in a question and should not be seen as legal advise. To obtain legal advise consult with an attorney of your choosing.