Failing to make mortgage payments in Texas can mean getting your home foreclosed. Lenders notify debtors about the foreclosure by mail to provide a 20 day time frame to pay the loan; if the debt isn’t paid off, lenders notify the loan is due and a sale of the property has been scheduled to cover it. There are interactions between Texas bankruptcy and foreclosure. Bankruptcies are filed to eliminate or establish repayment plans for debts and to keep property.
The law recognizes that the debtor and mortgagee have legitimate interests to protect in the property. So you might be wondering how exactly will bankruptcy and foreclosure interact in this process. There is the possibility of halting foreclosure and keeping your home if you file for bankruptcy. This is mostly achieved by filing for Chapter 13 bankruptcy which enacts an automatic stay, meaning that you get to keep your home. For this, you’ll need steady income to keep paying monthly mortgage payments along with the repayment plan.
How Chapter 13 Could Help You Keep Your Home
It’s recommended you file Chapter 13 if you have a regular and stable income, since it gives you the opportunity to come up with a repayment plan for your debts, including your mortgage. This chapter provides a more permanent solution to help you keep your home. Through the repayment plan, you’ll be able to pay your mortgage over 3 to 5 years. Keep in mind you’ll still have to cover the monthly mortgage payments.
It’s important to know that creditors can still file a motion to lift the automatic stay, allowing them to go ahead with the foreclosure. This type of motion is usually granted if it looks like you won’t be able to pay off the mortgage debts. To learn more about your options, don’t hesitate to call Acker Warren P.C. for expert legal advice on bankruptcy and foreclosure.