It may – comared with Chapter 7, there are a few benefits to Chapter 13 bankruptcy, when it comes to saving your home. With Chapter 13, you can pay off your debts, rather than having to sell your property. When you file for Chapter 13, you won’t have to give up your house to the bankruptcy trustee, even if there is nonexempt equity in your house. However, you will be required to pay unsecured creditors an amount equal to the nonexempt property currently in your bankruptcy estate.
Another benefit of Chapter 13 is that it permits you to delay your repayments of missed mortgage installments, taxes, and any late charges that might have accrued on your mortgage.
Finally, filing Chapter 13 bankruptcy can halt foreclosure proceedings on your house, as long as it hasn’t been sold yet.
Overall, converting to Chapter 13 might be an option, if you think that you would be able to repay your creditors with the help of a payment plan.
