When you are struggling to meet your financial obligations, and have fallen behind on your mortgage, you may have questions about whether or not a bankruptcy filing can help you keep your home. This blog post takes a look at how the bankruptcy laws affect home mortgages, and whether a Chapter 13 reorganization can be an effective tool when you face the potential loss of your home.

At the office of bankruptcy attorney Carrie Weir, in Rockwall, Texas, I provide a free initial consultation to anyone considering filing for bankruptcy. For a private meeting, contact my office online or call me at 972-772-3083 to set up an appointment.

Your Options in Bankruptcy When Facing Foreclosure

In a personal bankruptcy filing, you generally have two avenues of relief: you can seek to liquidate (or sell) assets under Chapter 7, or you can file for reorganization of your debts under Chapter 13. When you seek protection under Chapter 7, you are allowed to permanently rid yourself of certain debts in exchange for the sale of those assets. Chapter 7 bankruptcy, however, generally governs unsecured debts, such as credit card obligations and medical expenses. Typically, you cannot discharge the debt on property, such as a house or car, and still keep the property.

In a Chapter 13 filing, you enter into new payment agreements with your creditors. Often, as part of the process, your creditors may be willing to waive penalties and late fees, and allow you to roll any arrearages into a new note.

When you file for protection under Chapter 13, you are entitled to the benefit of the automatic stay under the bankruptcy laws. This prohibits your creditors from calling you, writing you or taking legal action against you, other than through the bankruptcy proceeding. This means that they cannot initiate legal action (file any lawsuits against you) and cannot proceed with any legal claims that have already been filed.

So, if you have filed under Chapter 7 or Chapter 13, a lender cannot start foreclosure proceedings against you. If a foreclosure action has already been filed, it must be suspended while the bankruptcy is in process. A Chapter 13 proceeding can last three to five years. Throughout the duration of the Chapter 13, you have the protection of the automatic stay. You must, however, make all agreed payments or risk the loss of the automatic stay.

Contact Heath, TX Bankruptcy Attorney Carrie Weir

I offer a free initial consultation to all potential bankruptcy clients. Contact my office by e-mail or call me at 972-772-3083 for a private meeting. With offices in Rockwall, Texas, I represent clients in Heath, Greenville, Lavon, Wylie, Mesquite and Rowlett.

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Call Rockwall bankruptcy lawyer Carrie Weir at 972-772-3083 or fill out the contact from below for a free, confidential consultation to discuss your options.

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