Protecting Your Real Estate Investments In Bankruptcy

For many people, bankruptcy only becomes a consideration after their real estate has been threatened. It is smart to begin asking questions about how filing for bankruptcy will affect your real estate. We are happy to discuss these issues with homeowners and owners of other types of property who want to learn more about bankruptcy.

Bankruptcy offers real solutions that will protect your real estate. Chapter 13 bankruptcy can reorganize arrearages on your mortgage and create a repayment plan that is built around your ability to pay. Over the course of the three- to five-year repayment plan that is a part of Chapter 13, you can become caught up on your mortgage. At the end of the repayment plan, any remaining unsecured debts can be discharged and you can be left in good standing on your mortgage.

We are able to offer help on a variety of bankruptcy and real estate-related issues, including:

• Foreclosure
• Mortgage payments
• Underwater home values
• The pros and cons of Chapter 13 versus Chapter 7
• Refinancing
• Real estate transactions

We Have Provided Debt Relief For More Than 10,000 Clients

At Goldman & Beslow, LLC Attorneys At Law, we are here to help you understand all aspects of the bankruptcy process including how it can benefit or otherwise impact the real estate you own. As real estate is often a person’s most valuable asset, this is a major issue that we can help deal with. Whether you are concerned about your home, small business property or some other type of real estate, we can help. We have helped more than 10,000 people just like you over the course of the more than 44 years we have been helping people get a fresh start in New Jersey.

Real Estate And Chapter 13 Bankruptcy FAQs

If you are falling behind on mortgage payments or facing foreclosure, you are not alone. Below are answers to the questions we often hear from people across New Jersey trying to hold on to their homes while navigating Chapter 13 bankruptcy.

Will Chapter 13 bankruptcy allow me to keep my primary residence?

You can often keep your primary residence if you continue making mortgage payments and include any missed payments in your repayment plan. New Jersey law allows you to propose a plan to catch up on arrears over three to five years while maintaining regular payments.

If your home has significant equity, the bankruptcy trustee may review whether it impacts your plan, but the homestead exemption in New Jersey (up to $27,900 in 2025) can protect some equity. Staying current on payments is key to avoiding foreclosure during the process.

Can I sell my property during a Chapter 13 bankruptcy?

You can sell your property during Chapter 13 bankruptcy, but you need court approval in New Jersey. You must file a motion showing that the sale is in your best interest and will not disrupt your repayment plan.

The proceeds may be used to pay creditors, depending on your plan and the property’s equity. Discussing the sale with your trustee beforehand helps ensure compliance with bankruptcy rules and avoids delays.

Can I modify my mortgage loan in a Chapter 13 bankruptcy?

In some cases, Chapter 13 allows mortgage loan modifications, particularly through a ” cramdown ” process for investment properties or second homes, but not for your primary residence in New Jersey.

For primary residences, you can seek a modification through your lender, often with court approval, to adjust terms like interest rates or missed payments. Programs like mediation may be available in New Jersey to help negotiate terms, but success depends on your lender’s agreement.

What happens to my property taxes during a Chapter 13 bankruptcy?

It all depends on whether they are current or past due. If you have delinquent property taxes, these can often be included in your Chapter 13 repayment plan. This allows you to catch up on the arrears over the life of your plan, preventing a tax foreclosure.

For ongoing property taxes that become due after your bankruptcy case is filed, you are generally responsible for paying them as they come due. Your Chapter 13 plan will outline how past-due taxes are handled, and it is important to remain current on new tax obligations to avoid further issues with your property.

Bankruptcy And Real Estate Lawyers Serving Northern And Central New Jersey

Are you wondering how bankruptcy could affect the real estate you own? We offer a free one-half-hour consultation to help you learn more. To schedule a consultation, call 973-414-8069 or contact us online.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.