You must file Chapter 11, 12, or 13 bankruptcy before the foreclosure sale to stop a Texas foreclosure.

The lender must first send you a notice of sale by certified mail at least 21 days before the sale is to take place. Note that the notice is considered sufficient even if no one picks up the certified letter. Once the lender has mailed the notice they have done all they are required to notify you of the foreclosure sale. Once you have filed Chapter 11, 12, or 13 the automatic stay in the bankruptcy code stops the sale and even if the sale takes place it is void. In other words you are protected once you file. Please note that if you have had one or more bankruptcy cases pending within the past one year you may only have a 30 day stay or no stay initially, but I can file a motion to extend the automatic stay througout the case.

Chapters 11, 12, and 13 allow you to cure defaults and pay arrearages on mortgages over a period of time. Unless all creditors are paid in full the minimum term of the Chapter 12 or 13 reorganization is 36 months. During this time you must pay any excess income to the case trustee, that is income left after your budgeted living expenses are deducted. Most of the time these payments are quite manageable for those who are disciplined.

Another incidental benefit of Chapters 11, 12, and 13 is that you can cram down secured creditors (except the mortgage of the home you live in if you are in Chapter 11 or 13, but click here to find out why this might change very soon!) In a cram down you almost always pay the creditor only the value of the collateral. This is great when you are upside down on a car. What actually happens is that the rest of the balance on the loan becomes unsecured and will only be paid pennies on the dollar at best. A cram down is most common for auto loans but can also be used for any secured debt where the collateral depreciates such as furniture.

I understand that most people who need to save their home have little money to pay me for a bankruptcy up front. In some cases I will file Chapter 13 with little money if you qualify. In some cases you may even qualify to pay the filing fee in installments to the court. Since the 2005 changes it takes more time to prepare a case, so please do not wait until the last minute. Contact me at (281) 999-9025 or click here to make an appointment for a free consultation now, especially if you are facing a foreclosure tell us right away!

If you want to be considered for filing the same day as your appointment, it is important that you finish your credit counseling including the final telephone component at least the day before your appointment. Click here to make an appointment. Additionally, you should also have completed the online intake form fully including the gross income figures for the last 6 months before the current month. Emergency filings have risks and should not be undertaken lightly. It is important that we have as much information as possible available before we file.

“At the end of the seventh year you are to cancel the debts of those who owe you money.”
Deuteronomy 15:1

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“Honest people are routinely taken advantage
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Alex Wathen

Office: 13280 Northwest Freeway, Suite F352, Houston, TX 77040 (281) 999-9025

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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

Licensed to practice law in Texas, the United States District Court for the Southern District of Texas, Western District of Texas, Eastern District of Texas, Northern District of Texas, the United States Courts of Appeals for the First, Third, Fourth, Fifth, Sixth, Seventh, Eighth, Ninth, Tenth, and Eleventh Circuits, as well as the United States Supreme Court. This site is neither sponsored, endorsed or approved by the law firm of Kubosh & Associates. Alex Wathen is solely responsible for its contents. This site provides only general information and is not a substitute for a face to face consultation with a bankruptcy attorney such as Alex Wathen. Neither is there ever an attorney client relationship created by the use of this site including the submission of any bankruptcy questions or other information. For more information contact Alex Wathen, 13280 Northwest Freeway, Suite F352, Houston, TX 77040, (281) 999-9025