Stopping Foreclosure with Chapter 7 or Chapter 13 Bankruptcy
When Texas residents get to the point where they’re facing the possible foreclosure of their home, they contact Alva Wesley-Thomas & Associates P.C. for legal advice in the matter. For most individuals, their home is the largest investment they will make during their lifetime. We understand how facing foreclosure can be an extremely stressful and worrisome situation. You’re probably wondering whether you’ll be able to keep your home or be forced to leave.
Is It Possible for You to Keep Your Home Despite Foreclosure?
One thing is certain. Hiring a bankruptcy attorney or foreclosure attorney can definitely help. When filing for bankruptcy, one of the benefits is the automatic stay. This court-ordered injunction starts the moment Alva Wesley-Thomas & Associates P.C. files your case, whether you’ve filed a Chapter 7 or Chapter 13 bankruptcy. This will stop the foreclosure process immediately once our attorney has filed your case and the lender is notified of your filing. Thus, you get a chance to protect your property.
Furthermore, this will stop all creditors from attempting to collect from you as well. A creditor has the right to petition the court to lift the stay but only after a hearing has been held regarding the matter. If the court believes that you won’t be able to afford your home, it’s possible that they will lift the automatic stay and the lender will be allowed to proceed with the foreclosure action.
Bankruptcy and Foreclosure Proceedings
If you file a Chapter 7 bankruptcy, the property that you want protected from creditors must be identified and retained by the filer. If you can use a Texas exemption, you’ll be able to keep your home. Fortunately, Texas law permits a homestead exemption that will protect the equity in your home provided it meets the acreage requirements under state law. However, even though you can wipe out your unsecured debts, you will still have to make your mortgage payments on time until the loan is paid in full. However, you need to consult with a lawyer to understand your situation and the legal solutions that are available to you.
With a Chapter 13 bankruptcy, you are allowed to repay your debts over 3 to 5 years through an income-based repayment plan. This includes the past due payments on your mortgage, thereby enabling you to keep your home. With this bankruptcy, you can pay off all past due amounts over a 3 to 5-year period rather than paying a lump sum up front. To learn more about stopping foreclosure, contact Alva Wesley-Thomas & Associates P.C. today at 713-278-0800 for a FREE Consultation.