This is perhaps the most asked question in my practice.  I am sorry to say that the answer is a definite "maybe."


No type of bankruptcy will currently allow someone to adjust the terms and conditions of a mortgage loan on their primary residence, as long as the house is used solely for that primary residence.  However, Chapter 13 bankruptcy will stop a Sheriff's Sale and allow you to make up your arrears, typically over 36 months.


Moreover, Chapter 13 allows someone to strip off mortgages that are wholly unsecured by value of the property.  So, for instance, if you own a house that is worth $90,000, your first mortgage loan balance is $100,000 and your second mortgage loan or HELOC balance is $20,000, the successful completion of a Chapter 13 Plan can get rid of the second loan altogether and leave you only with the first loan (and, of course, with possession of your house).

As always, the best thing to do is make an appointment to see an attorney.