The most common type of foreclosure in Texas is the non-judicial foreclosure. This means the lender has accelerated your loan by sending you a Notice of Acceleration letter and they have posted the property for sale for the first Tuesday of the month.
NOTE - If you have a home equity loan, please click here to review your options.
If your house or property has been posted for foreclosure, then a Chapter 13 bankruptcy is the only choice if you are behind on your mortgage or payments and want to keep your property at the end of the bankruptcy process.
A Chapter 13 bankruptcy allows you to make up the overdue payments and reinstate the original mortgage agreement. Also, people file Chapter 13 bankruptcy because they have too much income to file a Chapter 7 bankruptcy or have the kind of debt that in non-dischargeable in Chapter 7. (e.g. certain taxes)
If you are in arrears in your mortgage payments but the bank has not accelerated the note or has not posted the property, then you have some time to do pre-bankruptcy planning. This will allow you more control over how you restructure your debt.
However, if the property has been posted for foreclosure, TIME IS OF THE ESSENCE.
