Stopping Foreclosure in Texas With Bankruptcy

 Posted on October 11, 2021 in Uncategorized

If debt has taken over your peace of mind, you may be considering filing for bankruptcy. An experienced attorney can explain your choices and help you find a solution to collection letters and harassing phone calls from creditors. Bankruptcy can alleviate your financial stress and provide a fresh start.

If you’re considering filing for bankruptcy, you’re probably worried about losing your house, car, or other valuables. This is where the experience of Acker Warren, P.C. can help. An experienced lawyer can assess your case and come up with a solution that is beneficial for you and helps you retain your assets.

Filing for Chapter 7 and Chapter 13

When choosing how to stop foreclosure proceedings in Texas, one option is to declare bankruptcy. The automatic stay is in effect immediately upon filing of a Bankruptcy Petition. The Automatic Stay halts all collection actions against a Debtor including foreclosure. Your mortgage creditor is prohibited by the Court from moving forward with foreclosure once the case has been filed.

When filing for Chapter 13 bankruptcy, your foreclosure lawyer will work with you to create a payment plan that will last for a specified amount of time, usually 3-5 years. When you reach the end of the plan, your mortgage payments will be current as if you had never been behind, and you will keep your home and continue your life without the threat of foreclosure.

If you have multiple liens securing the debt on your house, a Chapter 13 can allow you to strip wholly unsecured liens from your property, or in other words, convert those liens to unsecured debt. Those unsecured debts will be discharged upon successful completion of a Chapter 13 plan. Since unsecured debt is only paid depending on your ability to pay through a Chapter 13 bankruptcy, this could save you thousands of dollars.

You could also file for Chapter 7 bankruptcy, which discharges most of your debts. This is especially beneficial if you’ve chosen to sell or surrender your house. The Automatic Stay applies in a Chapter 7 bankruptcy to the same extent as in a Chapter 13 but will not last as long as there is no ability to repay the arrears owed on the note. Still, the Chapter 7 bankruptcy buys you time to make sure you can get the equity out of your home instead of losing that equity in a foreclosure auction.

Get the Help You Need

Individuals in Fort Worth and Arlington that are contemplating bankruptcy to stop foreclosure can find experienced assistance at Acker Warren P.C. We understand the complexities of consumer bankruptcy, and we will assess your case and advise you on the best course of action.