Chapter 13 lets a homeowner cure past-due mortgage payments over a court-approved plan of up to five years while staying current going forward — the standard way bankruptcy saves a house.

QIM 34 | Bankruptcy | Caffeine Law

Ava: Michael, stopping a foreclosure with the automatic stay buys time — but then what? How does bankruptcy actually let someone keep the house?

Michael Benavides, Esq.: The workhorse is Chapter 13. Under 11 U.S.C. section 1322(b)(5), a homeowner can cure a mortgage default — the past-due payments, the arrears — over the life of a repayment plan while maintaining the regular monthly payments going forward. Lawyers call it “cure and maintain,” and it’s the standard, routine way people save homes in bankruptcy.

Ava: How long do you get to catch up?

Michael Benavides, Esq.: The Chapter 13 plan runs three to five years — up to 60 months. So instead of owing all of the arrears at once to reinstate, you spread them across the plan while resuming your normal mortgage payment starting after you file. The court oversees it, a trustee administers it, and if you complete the plan, the loan is brought current.

Ava: How is that different from Chapter 7?

Michael Benavides, Esq.: Chapter 7 is a liquidation — it can wipe out unsecured debt and give a fresh start, but it doesn’t give you a mechanism to cure mortgage arrears over time. If the goal is to keep a house you’ve fallen behind on, Chapter 13’s cure-and-maintain structure is usually the tool. Chapter 7 may still help indirectly by clearing other debt so you can afford the mortgage, but it won’t force the lender to accept a catch-up plan.

Ava: Is Chapter 13 available to everyone?

Michael Benavides, Esq.: No. There are eligibility rules — you need regular income to fund a plan, and there are debt limits and other requirements. And you actually have to make the plan payments: if you fall behind on the plan or on your ongoing mortgage, the lender can seek relief and the protection can end. Honest caveat: Chapter 13 is powerful but demanding, and whether it fits depends on your income, your total debt, and the numbers on your particular loan.

Ava: The takeaway?

Michael Benavides, Esq.: If you’ve fallen behind but you have steady income and want to keep the home, Chapter 13 is the classic path — stop the foreclosure with the automatic stay, then cure the arrears over a plan while staying current. It turns “pay everything now or lose it” into a structured catch-up.

Talk it through with Caffeine Law. If you’re behind on your mortgage and want to know whether Chapter 13 can save your home, a California attorney can run your numbers. Schedule a consultation with Michael Benavides, Esq.

Disclaimer

Attorney advertising. General information about bankruptcy and California foreclosure law, not legal advice; reading it creates no attorney-client relationship. Bankruptcy and foreclosure outcomes are highly fact-specific and depend on your income, debts, loan, and timing; federal and state laws change and are applied differently to different facts — confirm the current rules with a licensed attorney before acting. Michael Benavides, Esq. — California State Bar No. 270714 — is the only licensed attorney and the source of every legal statement here. Ava Benavides is an editorial brand voice, not an attorney, and does not give legal advice in her own name.