Foreclosure & Chapter 13 Bankruptcy
Filing a Chapter 13 Bankruptcy will stop foreclosure, and can allow you to repay your past due payments over 3 to 5 years. Filing Chapter 13 Bankruptcy will stop a foreclosure and prevent your home from being sold. Chapter 13 is a debt relief option that can not only stop foreclosure and allow you to save your home, but can also allow you to keep your other property while repaying your debts on your terms. Disposable income from your regular income is what usually funds a Chapter 13 repayment plan. Chapter 13 was designed to help people facing foreclosure and other potential losses of property. Stopping foreclosure is the primary reason people file for Chapter 13 bankruptcy. So, if you are eligible, Chapter 13 can stop foreclosure on your home.
If your home is up for foreclosure, contact our Texas Bankruptcy Lawyers for a free bankruptcy evaluation. Our Texas Bankruptcy Attorneys may be able to help you file for Chapter 13 Bankruptcy and stop foreclosure on your home. The Law Offices of R.J.Atkinson has stopped over a thousand foreclosures with Chapter 13 Bankruptcy, and we may be able to help you.
Chapter 13 bankruptcy can stop a foreclosure proceeding dead in its tracks because of the “automatic stay”. The “automatic stay” of bankruptcy is a powerful Federal Law that goes into effect the moment you file for Chapter 13 Bankruptcy. Once a bankruptcy of any type is filed, creditors must immediately cease and desist most all collection actions against you. This includes foreclosure proceedings. Unless you have recently filed a bankruptcy case that was dismissed or aren’t eligible to file Chapter 13 Bankruptcy, the automatic stay of bankruptcy will stop foreclosure.
If you are going to file Chapter 13 Bankruptcy to stop foreclosure, then your Chapter 13 case must be filed before the foreclosure sale actually takes place. If the Chapter 13 Bankruptcy case is filed after your home is sold at the foreclosure sale, then you will loose your home. So if you want to stop foreclosure with Chapter 13 Bankruptcy, it’s crucial to not wait until the last minute to prepare your Chapter 13 Bankruptcy case. There are some pre-bankruptcy requirements necessary, which include taking the means test, mandatory consumer credit counseling, and acquiring & preparing various documents that accompany the Chapter 13 filing.
Chapter 13 Bankruptcy will stop foreclosure, but it has other advantages. A Chapter 13 Bankruptcy repayment plan provides the opportunity to repay delinquent mortgage payments, property taxes, homeowner’s association dues, or other debts from future income instead of liquidating your property now to satisfy those claims. If you have unsecured debts such as credit card debt or medical bills, Chapter 13 can significantly reduce those debts, since unsecured debts only receive the remainder of your “disposable” income after secured creditors are paid. Also, in a Chapter 13 Bankruptcy, your payments are fixed by the plan approved by the Bankruptcy Court so you know exactly what you are paying. In other words the monthly payments are outlined upfront. You then make one payment to a trustee who in turn distributes the payments to your creditors according to the plan. The plan payment is from your disposable income so you can first pay your necessary living expenses and then pay the disposable income to the Chapter 13 Trustee, who then pays the creditors.
Every month many people in Houston, San Antonio, Dallas, Austin, San Marcos, Waco, New Braunfels, Victoria, Plano, Arlington, Garland, Katy, Sugarland, Addison, Richardson, San Marcos, and throughout the State of Texas stop foreclosure on their homes by filing for bankruptcy. In most cases, they choose a Chapter 13 Bankruptcy because it allows them to catch up their missed mortgage payments over time. That time is from 3 to 5 years depending on their situation. If you file for Chapter 13 individual debt adjustment to Stop Foreclosure, your property does not necessarily need to have any equity in it, but if it does have equity, you will not loose the equity that it has.
Foreclosure is a serious matter. If you’re like most people in Texas, your home is your biggest investment. So when you are facing a foreclosure and the prospect of loosing your home, you risk loosing your biggest investment. Don’t wait until the day before the foreclosure sale to do something. If you have questions about foreclosure and bankruptcy in Texas, contact us. Don’t let your home be sold.
Chapter 13 Bankruptcy stops foreclosure. If you are facing foreclosure, don’t just ignore it. Stopping foreclosure with Chapter 13 Bankruptcy can be the best option to save your home. Contact the Texas Bankruptcy Attorneys at The Law Offices of R.J.Atkinson for a free initial consultation to see how we can help you with the foreclosure. We may be able to help you to stop the foreclosure with Chapter 13 Bankruptcy. Our Texas Bankruptcy Lawyers welcome the opportunity to discuss your legal options on how to stop foreclosure and save your home.
Stop Foreclosure and Save Your Texas Home…
Call the Texas Bankruptcy Law Firm R.J.Atkinson at: 800-436-9056