Hello and thank you for allowing me the opportunity to assist you.
When you read that you cannot be behind on your payments because a Chapter 7 does not save your home, they’re talking about situations where the lender wants to foreclose. In reality, neither Chapter 7 nor Chapter 13 can save a home. The reason is that a creditor with a lien must be paid, or he can eventually foreclose. So, regardless of the type of bankruptcy you file, you’d need to pay your mortgage. However, a Chapter 13 has one huge benefit (and this is why people say it helps to save their homes) … in a Chapter 13, you can repay the arrears in the 3 to 5 year plan, whereas in a Chapter 7, you’d need to repay the arrears immediately. However, all of this assumes that the lender is trying to foreclose. So, when I wrote that you must immediately repay the arrears in a Chapter 7, I mean that the arrears must be immediately repaid if you want to prevent the lender from foreclosing. If the lender has no plans to foreclose, then it’s not an issue.
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