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  • Chapter 13 Bankruptcy to Fight Foreclosure

    Filing Ch. 13 bankruptcy is a powerful way stop foreclosure immediately in Texas

    If we determine that chapter 13 bankruptcy is your best option, we can arrange the details that allow us to file quickly or to file on the most strategic date. Once filed, the chapter 13 bankruptcy enacts an “automatic stay” which essentially blocks the foreclosure and allows you the ability to catch up the late portion of your mortgage over a period of THREE to FIVE YEARS.

    Flexibility of a Chapter 13 Bankruptcy in Stopping Foreclosure

    Because of the ability to take 3-5 years catching up a mortgage in chapter 13 bankruptcy, it offers a large amount of flexibility in that regard. Additionally, certain debts are may be legally dischargeable through Chapter 13 bankruptcy which may not be as clearly eliminated when filing Chapter 7. As an example, Ch 13 bankruptcy stops all interest on as well as all penalties levied on IRS debt. Chapter 13 bankruptcy even eliminates certain IRS debt which are older and which have not already been attached to a mortgage on a home with an equity position.

    We Create A Custom Plan with You to Bring Mortgage Current over 3-5 Years

    When filing a chapter 13 bankruptcy, the Dallas foreclosure prevention team at the Bright Law Firm will work together with you to create a plan that is designed to help you to keep the assets you want to keep and pay as according to what you can afford in your budget. Following a period ranging from 36-60 months, the leftover, unpaid portion of your debts which are unsecured in the bankruptcy plan are completely eliminated.

    Call Us before Time is Up in Foreclosure! 214-617-2500

    There are sad moments when our clients call or visit our office too late. Once the foreclosure sale date comes and goes in foreclosure procedures, filing bankruptcy is no longer an option. But in most situations, as long as you reach us the day before the actual foreclosure sale, we can file chapter 13 bankruptcy to stop home foreclosure. This can be a long-term solution, or as needed to buy time in exercising other viable solutions. Chapter 7 Bankruptcy can also be a powerful tool in a strategic default. The chapter 7 is less common for situations where the ultimate goal is to keep the home. The reason being that in a chapter bankruptcy, the total amount of the mortgage arrearages (the late portion of the mortgage payments,) must be brought current relatively quickly during the 3-5 month period of the Ch. 7 bankruptcy. On the other hand, the chapter 13 specifically allows 36 to 60 months to bring the mortgage current.

    You must realize that just like other financial problems, timing can become everything because waiting too long can severely or even completely eliminate your options. Coming early gives us more time and more time means that we can better work with you to prepare the best possible outcome due to having more legal options at our fingertips. Call (214) 617-2500 Today! By Pete Maughan.