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Can Bankruptcy Help Me Avoid a Foreclosure if I Have No Income?

This question was asked to Brewington Legal on our Facebook Fan Page:

Here is the answer that was given to the poster.

In order to pay the arrears of a secured debt, like a mortgage, you would have to file a Chapter 13. The problem with a Ch 13 for you is going to be that a judge has to confirm the plan saying that according to your finances you can afford to pay a certain amount. With no income, it would not be possible to approve a repayment plan.

You can do a Chapter 7 with no income because no payments to creditors are necessary in a Chapter 7 but u can’t do a Ch 13 with no income. This is problematic because a Chapter 7 will not address the issue of your unpaid mortgage. That means that you can get rid of all of ur unsecured debt but it’s not going to give you a plan to pay back your secured debt (in this case, your mortgage).