Search

Bankruptcy may save your Home from Foreclosure, True or False?

Bankruptcy may save your Home from Foreclosure, True or False? Sometimes you hear from a neighbor, family member or even a co-worker that bankruptcy may help you save your home. But is it true, or just too good to be true? It is True!

Bankruptcy may bring a foreclosure proceeding to a halt, end harassment from debt collectors, and give borrowers time to make up missed payments and reorganize their finances. Most of the time, bankruptcy can also help mortgage borrowers save their homes permanently. Not everyone has the same type of situation though. For example, if the homeowner's biggest problem is not enough money, bankruptcy is not going to solve that. It works if the homeowner's has an ongoing income. If they have been making payments and who could be making payments again.

Chapter 13 is usually more effective at helping people keep their homes. It gives them time to repair their finances, usually three to five years, during which the court agrees to an income-based budget with monthly payments made to trustees. A chapter 7 bankruptcy delays the foreclosure. Borrowers still owe their mortgage payments but they can likely afford to make them because all the other debts have been discharged, but it is a very rare scenario for most homeowners.

For more information on bankruptcy in or around the Houston area, schedule a free meeting with a bankruptcy lawyer from the Rashid Law Firm by calling us at 832-209-8833 to schedule a free initial consultation. We have our office at 10222 Gulf Freeway, Houston, TX 77034. We are here to help.

Recent Posts

See All

Debt and its effects on your kids

First of all, this blog entry is not fear mongering, and this is not to try to convince anyone to file bankruptcy. This is simply a forward to an article on a study done by the University of Wisconsin

Benefits in filing a Chapter 13 Bankruptcy

Benefits in filing a Chapter 13 Bankruptcy A chapter 13 bankruptcy is considered a reorganization bankruptcy. It becomes a repayment plan that is anywhere between 3-5 years. It helps paying off some o

  • Facebook Basic Square
  • Twitter Basic Square

©2020. The Rashid Law Firm. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. Disclaimer: This Website contains general information. The information on this Website is not intended to be legal advice and viewers should consult with an attorney.