For people throughout Dallas, Texas, foreclosure is something which looms large, just as it does for many other homeowners all over the state. While filing for bankruptcy isn’t something you may have thought of before, if you’re looking at an impending foreclosure, the US bankruptcy codes provide a way for consumers to stop foreclosure proceedings and stay in their homes.
When you hear the words bankruptcy protection, what most likely comes to mind is Chapter 7 bankruptcy, in which most or all of the debtor’s obligations are discharged and in many cases, many of their assets are forfeited in order to partially repay creditors. However, this isn’t the type of bankruptcy filing which you’ll generally want to opt for if you’re hoping to avoid a Dallas Texas foreclosure and stay in your home – though this is something you’ll need to assess along with an attorney, since it depends a great deal on your individual circumstances.
In terms of avoiding foreclosure, it is Chapter 13 bankruptcy Dallas residents usually opt for. Under Chapter 13 bankruptcy protection, the debtor will not generally have their debts completely discharged, though they may be significantly reduced. As opposed to a Chapter 7 proceeding where debts are eliminated, the debtor will enter into a repayment plan in a Chapter 13 bankruptcy which allows them to continue making payments on their outstanding obligations, generally over a term of three to five years.
Of course, while Chapter 13 bankruptcy protection can help Dallas, Texas residents stop a foreclosure, it does require them to continue to make their mortgage payments in a timely manner. However, the relief that this type of bankruptcy protection offers can give debtors enough breathing room to become current on their mortgage payments and start to get back on their feet financially.
There are some limits to the protections offered by this portion of the US bankruptcy codes, however; which is something that you should discuss with an experienced Dallas Texas foreclosure lawyer. Depending on the amount of your debts, you may or may not be eligible to file for Chapter 13 bankruptcy; though your attorney may be able to suggest alternatives to help you to avoid a foreclosure or to emerge from a overwhelming amount of debt and become debt free.
These are admittedly difficult times and there are a great many people in Dallas and all throughout the state of Texas who find themselves in incredibly tough circumstances through no fault of their own. While it’s not a situation that any of us want to find ourselves in, there is help available. If you’re facing a foreclosure or may need to file for bankruptcy protection, it’s time to contact a Dallas bankruptcy lawyer like Rustin Polk; our skilled firm is helping Dallas residents to keep their homes and emerge from under their financial burdens.