Filing for bankruptcy is a serious decision. Although it can discharge some debts and stop harassment from creditors, it stays on a credit report for up to 10 years, damaging filers’ credit. However, what happens when a homeowner is behind on mortgage payments and does not want to lose his or her home? Bankruptcy can help in some situations. Contact a Texas bankruptcy attorney to discuss whether it is the right decision for you.
Your Home in Bankruptcy
After a homeowner misses several mortgage payments, the lender may begin the foreclosure process. During this time, there are other options to consider, such as a short sale or loan forbearance. If none of these options is viable, bankruptcy may be something to consider.
When you file for bankruptcy, the court orders an automatic stay that forces debt collectors, such as your home lender, to stop collection activities. If your home is scheduled to be sold, any activities involving the sale must be stopped immediately.
There are situations in which filing for bankruptcy will not prevent foreclosure. For example, the lender can file a motion to lift the automatic stay and proceed with selling the home. This could still delay the process, though, although not as long as if a motion is not filed.
It is important to note that bankruptcy may help you keep your home only if you can find a way to make the monthly payments. If you cannot meet payments, bankruptcy ultimately will not prevent your home from going into foreclosure. This is something to consider when weighing your options.
Talk to a Texas Bankruptcy Lawyer
If you are considering bankruptcy to delay a foreclosure, learn more about what steps you need to take. Contact the law offices of Warren & Migliaccio, L.L.P. We can discuss your legal options if you are considering filing for Chapter 7 or Chapter 13 bankruptcy to help delay this process. Contact us today at 1-888-584-9614.