Stop Home Foreclosure
Chapter 13 Bankruptcy can be advantageous to those who have fallen behind on mortgage payments and who are looking to stop home foreclosure. Most people in Colorado have adjustable rate mortgages (ARM) that tend to adjust up. If people are having trouble at the inception of a loan, generally the situation continues to worsen.
Interest rates could jump again. Chapter 13 Bankruptcy is one of the few ways to attempt to cure defaults or non-payments on a mortgage.
Colorado utilizes state exemptions in Chapters 7, Chapter 11, and Chapter 13 Bankruptcy to arrive at the amount of the debtor’s property exempt from the claims of creditors.