Did you know that filing for bankruptcy will delay foreclosure? Chapter 13 will help you reorganize your debts and repay them over the period of 3-5 years. Chapter 7 is a liquidation bankruptcy and may delay a foreclosure but it’s not your best choice since in most cases you will not be able to keep your house if you’re behind on payments. Contact us to learn more on how you can keep your family home and reorganize your finances for the future!
For many, homeownership is the heart of the American Dream. That’s why hardworking Dallas Fort-Worth families have sacrificed their sweat, blood, and tears to make this dream a reality. Yet countless Texas families are on the verge of losing their homes to foreclosure, despite all the work they have done to achieve their dreams.
Fortunately, the Chapter 13 bankruptcy process allows you to avoid foreclosure by reducing and reorganizing your debt. Call or text DebtStoppers at 469-646-0750 to request a free debt settlement evaluation with one of our skilled Texas bankruptcy attorneys. We can help you understand the process and how filing for bankruptcy will let you keep your home.
If you took out a loan to purchase your home, you most likely signed a deed of trust granting the lender the right to take ownership of the property if you fall behind on your payments. Under the terms of the agreement, the loan is “secured” by your home. If you breach your end of the bargain and fail to make payments, the bank can take possession of your home by foreclosing on it.
Texas laws allow for a non-judicial foreclosure process. This means that a lender can foreclose on your home without having to go to court. Instead, they can auction off the property through a process called “power of sale.” After advertising the sale, the lender will sell the house to the highest bidder. If the sale price doesn’t cover the full amount you owe, the lender can go to court and get a “deficiency judgment” that keeps you on the hook for the remaining balance.
While many states allow for a “redemption period” after the sale, during which you have the right to buy back the house, the Texas process does not include a statutory redemption period.
The Texas Chapter 13 bankruptcy process can stop foreclosure. The moment your lawyer files a petition, the court will issue an automatic stay that orders your creditors to immediately halt any and all collection activities. This means that a lender can’t pursue foreclosure, and if they have already initiated the process, they are required to stop.
In addition to the temporary foreclosure prevention offered by an automatic stay, Chapter 13 can lower your debt and reorganize it into a 3-to-5-year repayment plan.
Even though you’ll still be responsible for your mortgage payments, Chapter 13 will generally eliminate about 90% of your other debt, making it possible for you to pay your mortgage.
Don’t lose the house you’ve worked so hard to buy. At DebtStoppers, our experienced Texas lawyers can save your home by helping you file for Chapter 13 bankruptcy. Call or text us today at 469-646-0750 to schedule a free consultation with a skilled Dallas Fort Worth attorney.
DebtStoppers has helped thousands of families stay in their homes, and we can stop the bank from taking the roof over your head. There is no time to waste, so call or text us today at 469-646-0750 to learn more about your debt relief options!