Repaying Mortgage Arrears in Chapter 13
Whether a few mortgage payments have been missed or the house is in foreclosure, Chapter 13 often allows the debtor to keep their house and pay the arrears over time through the court-approved plan.
In order to take advantage of this provision, the debtor must have sufficient income throughout the plan period to make the monthly Chapter 13 payments in addition all regular monthly mortgage payments that come due between the time of the Chapter 13 Bankruptcy filing and the conclusion of the case.
Repaying Car Loan Arrears in Chapter 13
Normally, a lender can repossess a vehicle if the borrower fails to make the monthly loan payments. Chapter 13 allows a debtor in default to keep the vehicle and repay the arrears through the Chapter 13 plan.
The debtor must also be able to make the loan payments that come due between the filing of the Bankruptcy and the conclusion of the case unless the approved plan provides for full payment of the remaining loan balance through the plan.