Which chapter is better for keeping a house in foreclosure?

Chapter 13 is generally the option that allows a homeowner to catch up on missed mortgage payments through a repayment plan. Chapter 7 can pause a sale temporarily but doesn't include a plan to cure arrears.

Do I need a certain income to qualify for Chapter 13?

Yes, Chapter 13 requires steady income to fund the repayment plan, which is different from Chapter 7's means-test based eligibility.

Can I switch from Chapter 7 to Chapter 13 mid-case?

In some circumstances a case can be converted between chapters. An attorney can review whether that makes sense based on where the foreclosure stands.

Chapter 7 vs Chapter 13 bankruptcy: which fits a foreclosure case

Homeowners researching bankruptcy in the middle of a foreclosure are usually trying to answer one question first: which chapter actually fits their situation. Chapter 7 and Chapter 13 work differently, and the choice affects whether the home can realistically be saved.

Chapter 7 discharges most unsecured debt fairly quickly but does not include a repayment plan for missed mortgage payments, so it tends to buy time rather than resolve the foreclosure itself. Chapter 13 sets up a court-supervised repayment plan, typically over several years, that can let a homeowner catch up on mortgage arrears while keeping the property. Income, the amount owed, and how far behind the mortgage is all factor into which chapter a person qualifies for.

Chapter 7: faster process, discharges qualifying unsecured debt, does not create a repayment plan for mortgage arrears
Chapter 13: multi-year repayment plan, can cure mortgage arrears over time, requires steady income
Both trigger an automatic stay that pauses a scheduled foreclosure sale
Eligibility for either chapter depends on income, debt totals, and prior filings

What it costs

Attorney fees for Chapter 13 are usually higher than Chapter 7 because the case runs for years and involves ongoing plan administration, while Chapter 7 fees are typically a flat rate for a shorter process. Court filing fees apply on top of attorney fees in both chapters. Ask whether the quoted fee includes the full case or just the initial filing.

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FAQ

Which chapter is better for keeping a house in foreclosure?: Chapter 13 is generally the option that allows a homeowner to catch up on missed mortgage payments through a repayment plan. Chapter 7 can pause a sale temporarily but doesn't include a plan to cure arrears.
Do I need a certain income to qualify for Chapter 13?: Yes, Chapter 13 requires steady income to fund the repayment plan, which is different from Chapter 7's means-test based eligibility.
Can I switch from Chapter 7 to Chapter 13 mid-case?: In some circumstances a case can be converted between chapters. An attorney can review whether that makes sense based on where the foreclosure stands.

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