Shelter is one of the three basic needs humans rely on for survival. It is no wonder then that so many feel paralyzed by fear and grief when they realize that they may lose their home to foreclosure. In other instances, it pushes people to think creatively about any option that might help them to hold on to their homes and keep a roof over their heads. 

One well-known option many Americans try is to use Chapter 13 bankruptcy. Bankrate refers to Chapter 13 as personal reorganization bankruptcy. It explains that instead of liquidating assets, a person gets to keep their belongings and repay some debts. Bankrate cautions that to do this successfully, homeowners may need to keep up with the payment plan for up to five years before getting that fresh start they need. 

Including credit card debt, student loan debt and any other outstanding money owed is important. Failure to do so may jeopardize an individual’s ability to complete the process. Keep in mind that it only takes a credit check to get all the necessary debt information on file, so there is no point in hiding this information. 

Credit Karma adds that one of the important aspects of Chapter 13 that makes it a good option for keeping a home is the automatic stay. This essentially puts a pause on any foreclosure procedures the lender had already begun. At this point, debtors usually also enjoy the end of collection calls from banks and their agents. 

An important note worth reiterating is that missed mortgage payments under the Chapter 13 repayment plan may lead to losing the home anyway. Because of this, keeping up with the repayment plan is necessary.