Many Texans work hard to keep a roof over their head. Yet, it doesn’t take much for the financial strains to make it challenging to pay bills to maintain that housing. Although Texans who rent can always finish up their lease and move to a cheaper living arrangement, homeowners can’t simply walk away from their mortgage without serious financial consequences. As a result, many Texans who fall on hard financial times find themselves struggling to stay current on their mortgage. When they fall several months behind on their payment, they may face foreclosure.
Yet, an individual doesn’t have to lose his or her home due to financial trouble. By filing for personal bankruptcy, whether it is Chapter 7 or Chapter 13, an individual can benefit from an automatic stay on foreclosure proceedings. This can buy a homeowner time to seek the elimination of other debts so that mortgage payments can be made up. Through Chapter 13 bankruptcy, individuals enter into a repayment plan to pay off some debts, while others are written off. This can allow an individual to keep his or her home.
Filing for bankruptcy doesn’t always stop the foreclosure process, though. A mortgage lender can file a motion with the bankruptcy court to have the automatic stay lifted, which, if granted, would allow the foreclosure to proceed. Also, sometimes a foreclosure that is already far into the process may be allowed to proceed. This is why quick action is needed.
Bankruptcy can be a scary option for some Texans, but the truth of the matter is that it is a very real debt relief option that may allow an individual to keep his or her home while climbing free of debt burdens. Chapter 13 bankruptcy, in particular, can lead to manageable payments that ensure that an individual isn’t overwhelmed and can secure the financial stability he or she needs to play a part in society’s economy. Millions of people have taken advantage of the bankruptcy system. Don’t be too afraid to join them and wind up losing more than you have to.