San Diego, CA -- (SBWIRE) -- 07/09/2012 -- Consumers who are facing the possibility of losing their home have an ace in the whole with Chapter 13 Bankruptcy. According to the Bankruptcy Law Center in California, Chapter 13 is designed to stop foreclose dead in its tracks to allow homeowners to remain in their home and pay off the debt slowly. Oftentimes consumers need only a few extra months to get caught up on their mortgage payments which is where Chapter 13 comes in handy.

Chapter 13 bankruptcy was created specifically for consumers who earn enough money to pay back some of their debts over a specified period of time. In fact, Chapter 13 gives the consumer the power to maintain ownership of all their property using the power of the United States legal system. Congress amended the bankruptcy laws simply because it felt that many individuals had the capability to pay back their creditors at least something over an extended period of time.

“My husband was attacked and badly injured and he lost his job because he couldn’t work anymore. We almost lost our home because without his steady paycheck I got behind on our payments and we were on the verge of becoming homeless. We filed for Chapter 13 and we were able to keep our home. And now that my husband is receiving SSI we are back on track with all our bills.” – Eileen Harrington

Back in 2005, congress amended the bankruptcy code to stop consumers which were abusing the system.

And at the same time it helped consumers who needed just a little more time become current on all their mortgage and monthly bills. It is almost as if Chapter 13 Bankruptcy was created especially for the real estate market decline.

When the housing market went bust a few years ago most consumers in the United States saw their equity go straight out the window. Many people who purchased a home at the peak of the market saw themselves upside down and underwater only a few years later.

About The San Diego Bankruptcy Law Center
The San Diego Bankruptcy Law Center works with clients who face many problems: crushing credit card debt with high interest rates up to 34%, unemployment or substantial decrease in income, overwhelming medical bills, home foreclosures, adjusting interest rates on their homes, and struggling or failed small businesses.