For Texas residents facing an unmanageable amount of debt, there is help out there. They can put a stop to collection calls through a Chapter 13 bankruptcy filing. When filing Chapter 13 bankruptcy, individuals can help themselves, getting out of debt by agreeing to a repayment plan with those to whom they owe money.
A bankruptcy filing puts a hold on most collection efforts, but those efforts are often only put on hold for a short time. While the stay of action is in place, lawsuits cannot be initiated or continued, wages cannot be garnished and telephone calls cannot be made demanding payment.
A Chapter 13 bankruptcy filing can provide debt relief and save an individual's home from being taken in a foreclosure. However, it only buys time for the individual to try to save his home. He needs to bring past-due mortgage payments current in what is determined to be a fair amount of time. However, until the Chapter 13 bankruptcy petition is filed, a home can still be lost if the mortgage company sells the home. Starting the Chapter 13 process does not make a person immune from a foreclosure sale. Only filing the bankruptcy petition does that. People can also lose their home if they do not make the required mortgage payments after the bankruptcy filing.
An attorney can help struggling individuals work through the steps of a Chapter 13 bankruptcy. Dallas Chapter 13 bankruptcy attorneys are available to help individuals through all the difficulties in the process. Getting a hold placed on collection efforts can be a benefit of filing for bankruptcy and give an individual a chance to start over, wiping away his or her financial debt.
Source: United States Courts, "Individual Debt Adjustment", October 03, 2014