A recent study confirms what many of us have known for some time– filing Chapter 13 bankruptcy is one of, if not the best way to keep people in their homes. Researchers from North Carolina looked at the cases of nearly 4,300 homeowners across the country, all of whom were more than 90 days late on their 30 year fixed rate mortgages. The study said that when homeowners filed bankruptcy, sales of their home were 70% less likely to occur than for borrowers who didn’t file bankruptcy. Although this was true whether or not the homeowner filed Chapter 7 or 13 bankruptcy, homeowners who filed Chapter 13 were five times more likely to avoid foreclosure sales. The researchers found that the unique features of Chapter 13 were good tools for preserving home ownership. These features include the ability to cure defaults at 0% interest, strip liens and pay an attorney over time. Another finding from the study showed that even for borrowers who aren’t successful at keeping their house, filing Chapter 13 provides benefits. According to the study, nationally the median length of time from the start of foreclosure to a sale of the house was 8 months for borrowers who didn’t file bankruptcy but 16 months for those filing Chapter 7 and 26 months for those filing Chapter 13. This additional time to stay in their home provides borrowers a significant boost. If you’re struggling with mortgage issues and want to consider Chapter 13 contact us to talk about what options are available.