A Chapter 13 bankruptcy helps people with a steady income catch up on their debts, including their mortgage, through a structured repayment plan that lasts three to five years. When you file, the court immediately issues an “automatic stay,” which stops foreclosure and other collection efforts. This gives you time to bring your mortgage current by spreading out missed payments over the length of your plan, while also keeping up with your regular monthly payments. It’s a way to stop losing your home while you get back on track financially under the court’s protection.

In some cases, Chapter 13 can also help with second mortgages or home equity loans. If your home’s value is less than what you owe on your first mortgage, those additional loans might be treated like unsecured debt—similar to credit cards—and could be reduced or wiped out once your repayment plan is complete. To keep these benefits, it’s important to stay current on all payments during the process. Overall, Chapter 13 offers homeowners a practical path to avoid foreclosure, manage debt, and protect their home while rebuilding financial stability.