Filing for bankruptcy is a significant decision, and one of the biggest concerns for homeowners is whether they’ll lose their home in the process. The good news is that in many cases, Texas bankruptcy laws offer protections that can help you keep your home. However, the outcome depends on various factors, including the type of bankruptcy you file, the amount of equity in your home, and your ability to keep up with mortgage payments.

Work with an experienced bankruptcy lawyer that’s on your side – Heston Law Firm. Contact us for a free case consultation.

Chapter 7 Bankruptcy: Protecting Your Home

Chapter 7 bankruptcy, also known as “liquidation bankruptcy,” involves the sale of non-exempt assets to repay creditors. Fortunately, Texas has generous homestead exemption laws that protect a significant amount of home equity.

If you’ve lived in Texas for more than 40 months, you can often protect an unlimited amount of home equity in a Chapter 7 filing, provided you meet certain acreage restrictions. Even if you haven’t lived in Texas for that long, you may still be able to protect a substantial portion of your home’s value.

However, if your home equity exceeds the exemption limit, the bankruptcy trustee might sell your home to pay off creditors. In this scenario, you’d receive the exempt amount of equity, while the remaining proceeds would be used to settle your debts.

Chapter 13 Bankruptcy: Catching Up on Mortgage Payments

Chapter 13 bankruptcy is a debt reorganization plan that allows you to catch up on missed mortgage payments over a 3 to 5 year period. This option is particularly beneficial if you’re behind on your mortgage but have the income to make future payments.

By including your mortgage arrears in your repayment plan, you can potentially avoid foreclosure and stay in your home. However, you must make all required plan payments on time to prevent dismissal of your case and the loss of your home.

Working with Heston Law Firm to Protect Your Home

Navigating the complexities of bankruptcy law and homestead exemptions can be daunting. Our bankruptcy attorneys can guide you through the process, ensuring you understand your rights and options for keeping your home. We will:

• Assess Your Situation: We will thoroughly evaluate your finances and home equity to determine the best course of action.
• Develop a Strategy: Based on your circumstances, we can craft a personalized plan to maximize your chances of keeping your home.
• Represent You in Court: We can handle all legal proceedings, advocating for your interests and ensuring your rights are protected.
• Negotiate with Lenders: We can negotiate with your mortgage lender to modify your loan terms or find other solutions to help you keep your home.

Don’t Face Financial Challenges Alone – Bankruptcy Lawyer

The fear of losing your home shouldn’t prevent you from seeking the financial relief you need. With the guidance of our bankruptcy lawyers at Heston Law Firm, you can navigate bankruptcy confidently, protecting your home and achieving a fresh start.

If you’re considering bankruptcy in Texas, don’t hesitate to contact our team for a free consultation. We provide compassionate, expert advice to help you make informed decisions about your home and your financial future.