Individuals in Texas who have filed for Chapter 13 bankruptcy may wonder what to do if they find that they still cannot make payments on their mortgage. There are two solutions available if an individual no longer wishes to continue making house payments in this situation.
If collection calls are coming each day and there is no money to pay those past due bills, it may be time to file for bankruptcy. Senior citizens and those who are unemployed may not have the resources necessary to pay their debts because they have little or no income to do so. In some cases, senior citizens who file for bankruptcy may be able to keep their home and most or all of their retirement benefits.
For some Texas residents, bankruptcy protection may be the only answer for debt relief. However, the question of which type of bankruptcy to file can be difficult due to the differences between them.
Financial difficulties for Texas residents can range in magnitude, making it important to evaluate your options as you take on a specific situation. When those challenges extend to many debts or involve an extreme life change, you may find that filing bankruptcy becomes a serious consideration. However, bankruptcy isn't always the best solution. Even when you do find that bankruptcy appears to be the route to take, it is important to have solid counsel to ensure that your filing is accurate and appropriate.
Many U.S. citizens hope to own a home now or in the future. Yet, the rising cost of living often prevents people in Texas from being able to afford their house. Bills begin to mount, and calls from lenders become more frequent. In some situations, foreclosure is unavoidable.
Homeowners in Texas who are both overwhelmed by unmanageable debt levels as well as the specter of foreclosure may be unaware that filing Chapter 13 bankruptcy can both provide relief from their debt as well as halt the foreclosure of their home. Unlike the liquidation under Chapter 7, Chapter 13 bankruptcy provides a vehicle through which filers may take control of their delinquencies and save their homes.
Texas residents may not be aware of state laws that allow a homeowner to regain ownership of a home after it has been foreclosed. The process is called statutory redemption, and it allows mortgagors to reclaim their property within a limited period if they are able to repay what the property sold for during the foreclosure sale. The period is typically one year and the homeowner must pay a lawful rate of interest to the sale purchaser of the foreclosure.
Texas homeowners facing foreclosure may be interested in some of the ways that they can work with lenders to stop it. Depending on the lender, several options could be available.
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.
As some Texas residents may know, Chapter 13 bankruptcy may allow an individual to pay back their debt and keep their property. The payback period depends on the debtor's income. The greater the debtor's monthly income, the longer the repayment time, but the typical plan lasts from three to five years.