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Chapter 13 bankruptcy is a re-organization bankruptcy that allows you to restructure all of your debts and repay a percentage of them over a 3-5 year period, which can include tax debts and past due amounts owed on a mortgage. The biggest advantage of Chapter 13 bankruptcy is the ability to eliminate a 2nd mortgage lien through a lien strip process if the property value has fallen below how much is owed on the 1st mortgage. The repayment percentage is different for each case as each person's income and secured debt amounts are different. It ranges from 0-100%. It's best to work with an experienced bankruptcy attorney to find out whether Chapter 13 bankruptcy is advantageous for you and what your repayment percentage might be. |
