Texas homeowners who are facing foreclosure should seek the assistance of an attorney who practices within the bankruptcy field. This process allows them to avoid foreclosure by filing a claim in bankruptcy court. If your lender has initiated a Foreclose Process Jacksonville TX for your property, you should contact an attorney without delay.
Bankruptcy to Prevent Foreclosure
To qualify for bankruptcy in Texas, you are required to fulfill the credit-counseling obligation outlined in the 2005 Bankruptcy Act. Once you complete this process, your attorney conducts the means test to establish which chapter of bankruptcy you could file. If you’re facing the Foreclose Process Jacksonville TX for your primary residence, chapter 13 is the most beneficial for you. The automatic stay you acquire lasts throughout the duration of your bankruptcy case, which could equate up to five years.
For chapter 13, your income should be higher than the median income for the county in which you file your bankruptcy case. The median income for Cherokee County is $29,313. If you fail the means test, you cannot file this chapter of bankruptcy; you’re eligible for chapter 7 only. The issue you may face with this restriction is that the automatic stay lasts roughly three to six months. At the conclusion of your bankruptcy case, if you haven’t caught up all delinquent payments for your mortgage, your lender could restart the Foreclose Process Jacksonville TX and you will lose your property.
Consumers who pass the means test for chapter 13 reap the greatest benefits, including the extension of protection against foreclosure. They also acquire more provisions that allow them to pay off their debts over an extended period of time without adverse legal repercussions. The drawback of this chapter is that their payment is garnished from their wages, and they are required to use all expendable cash to pay off debts that are not included in their case.
Bankruptcy is the most beneficial and effective way to fight the Foreclose Process Jacksonville TX and keep your property. It does restrict your finances and prevents you from acquiring further lines of credit until its conclusion. If you wish to learn more about this option, you should contact your preferred bankruptcy attorney today and schedule a consultation.
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