Facing foreclosure can be one of the most stressful experiences a homeowner in Texas can endure. If you’re struggling with mortgage payments and are worried about losing your home, it’s important to know that bankruptcy may offer a path to temporary or permanent relief. At J Gannon Helstowski Law Firm, we are here to guide Texas residents through their legal options and help them take control of their financial future.

The Power of the Automatic Stay

One of the immediate benefits of filing for bankruptcy is the automatic stay—a powerful legal tool that stops most creditors from pursuing collection actions, including foreclosure. Once a bankruptcy petition is filed, the automatic stay halts any foreclosure proceedings, giving you time to evaluate your options and plan your next steps.

Whether you file under Chapter 7 or Chapter 13 will determine the scope and duration of foreclosure protection.

Chapter 7 Bankruptcy: A Temporary Solution

Chapter 7 bankruptcy is typically used to discharge unsecured debts, like credit cards or medical bills. While it may not provide long-term protection against foreclosure, it can delay the process by several months. This delay can offer breathing room to explore alternatives such as loan modification or a short sale.

However, if you're behind on your mortgage and unable to catch up quickly, Chapter 7 may eventually lead to foreclosure unless you make arrangements with your lender.

Chapter 13 Bankruptcy: A Strategic Option to Save Your Home

Chapter 13 bankruptcy is often a more effective solution for homeowners aiming to keep their property. This form of bankruptcy allows you to create a repayment plan that spans three to five years, during which you can catch up on missed mortgage payments while staying current on future ones.

If you have a steady income and are committed to staying in your home, Chapter 13 may help you avoid foreclosure altogether by restructuring your debts in a manageable way.

Additional Protections in Texas

Texas provides certain homeowner protections through its generous homestead exemption, which can safeguard your primary residence in bankruptcy. This state-specific benefit can work hand-in-hand with bankruptcy filings to protect your home from creditors.

Why Legal Guidance Matters

Bankruptcy is not a one-size-fits-all solution, and choosing the wrong approach can have serious consequences. At J Gannon Helstowski Law Firm, we help Texans evaluate their full range of options to make informed decisions. If foreclosure is looming, time is critical—reach out to us before it’s too late.