When you file a chapter 13 or chapter 7 bankruptcy, all collection efforts stop. That means creditors cannot foreclose on your home or repossess your car. Most people want to file a chapter 13 bankruptcy so they can keep their home, but many times I recommend that my clients abandon ship and I will tell you why! In a chapter 13, all of your debts are put into a big pot, you make a monthly payment to the chapter 13 trustee, usually for 3 to 5 years, and he pays all of your creditors a little bit every month. Now, this is the problem, most people could not afford to make their regular house payment before, but now they not only have to make the house payment, but they also have to make a payment to the chapter 13 trustee. When you come into my office, I will ask, can you afford to make the house payment and all your necessaries to live (electric, food, gasoline, etc.) If the answer is yes, then you might be a good candidate for a chapter 13. The next question is, after paying your house payment and all your necessaries do you have any money left over at the end of the month to make a payment to the chapter 13 trustee? Remember, you have to pay back all of those missed house payments over 3 to 5 years, along with any other debts thrown into that big pot. So, if you or your spouse lost a job for a while and got behind on your house payments, but now have a way to make the current house payments then you could be a good candidate for a chapter 13 bankruptcy. However, many people file a chapter 13 bankruptcy when their income has not increased nor has their expenses decreased and by filing a chapter 13 bankruptcy they are only putting a band aid on a gushing wound! Trust me, 2 years later you will be upon foreclosure again and asking me, did I file bankruptcy for nothing? And I will say, I told you 2 years ago you couldn't afford this home and you need to abandon this ship!! Please don't let your pride get in the way because you will only be more disappointed that you didn't abandon ship sooner.