Chapter 13 Reorganization and Real Property Debts

The Best Way to Get Control of Mortgage and Property Tax Obligations

Chapter 13 Reorganization and Real Property DebtsFor many who seek protection under American bankruptcy law, financial troubles relate largely to ownership of real property. For example, owners may be behind on mortgage payments and property taxes, facing tax liens and potential foreclosure. You can seek to discharge debts in Chapter 7, and may even be able to exempt your home from the bankruptcy estate, but you can’t get any kind of relief for property tax arrearages with a Chapter 7 filing.

Chapter 13—A Better Approach for Real-Property-Related Debts

Chapter 13 usually offers a better way to address real property obligations, particularly if you want to keep your home. In Chapter 13, you have the opportunity to establish new arrangementsto make certain mortgage and property tax payments over a three-to-five year period. From the moment you file for bankruptcy, until the full Chapter 13 period is over, you’ll have the protection of the automatic stay, which prohibits creditors from calling, writing, or otherwise seeking to recover debts other than through the bankruptcy proceeding.

While five years may not be a sufficient time to pay off your mortgage in full, a Chapter 13 proceeding can help you eliminate other debts, leaving you with more disposable income. In addition, if you honor your payment commitment with respect to the mortgage for the full five-year period, there’s a good chance that, once the bankruptcy is done, your lender will work with you to set up a new payment arrangement you can keep.

Contact an Experienced Rockwall, Texas, Bankruptcy Attorney

At the Law Offices of Carrie Weir, I offer a free initial consultation to all potential bankruptcy clients. Send me an e-mail or call my office at 972-772-3083 for a private meeting. I work with individuals throughout Rockwall County, Texas, including the cities of Rockwall, 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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