IF I FILE FOR BANKRUPTCY, WILL I LOSE MY HOUSE?
Feb. 9, 2021
According to statistics from The American Bankruptcy Institute, in 2020, there were about 26,143 bankruptcy filings in Texas. Individuals going through financial hardship can file bankruptcy to get relief from debt or a needed fresh start. One of the many questions people ask when considering filing for bankruptcy in Texas is whether they can keep their house. Since your house is one of the most valuable things you own, the last thing you want is to lose it.
If you're thinking about filing for bankruptcy or if you are concerned about what would happen to your house after filing, consulting with an experienced Texas bankruptcy attorney is crucial for proper guidance.
At Oliva Law Bankruptcy, we're dedicated to offering knowledgeable and comprehensive legal guidance to clients in bankruptcy-related matters. Our team will be available to discuss your unique circumstances and help you understand what to expect after filing. We are proud to serve clients across McAllen, Harlingen, Corpus Christi, Brownsville, and throughout the Rio Grande Valley, Texas.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy, also referred to as "repayment plan" bankruptcy, is a debt relief option available to individuals who are regular wage earners but experiencing financial distress. In Chapter 13, a feasible repayment plan will be created with the payments spread over three to five years. The repayment plan will afford you enough time to pay off your debt and recover on past-due payments.
Under Chapter 13, you will be allowed to keep all of your property, including your house and your car. In fact, at the end of the Chapter 13 repayment plan, some of your unsecured debt may be discharged. As long as you keep up with your monthly payments, your home cannot be foreclosed on by the lender.
Chapter 7 Bankruptcy
Another bankruptcy option available to individuals going through financial adversity is Chapter 7 bankruptcy. Also known as "liquidation bankruptcy," Chapter 7 is a debt relief option that helps wipe out most of your general unsecured debts and give you a needed financial "clean slate."
Under Chapter 7, the Texas court will appoint an independent contractor (known as a trustee) to oversee your bankruptcy case. The trustee will gather and evaluate your debt and property, then sell your non-exempt assets. The net proceeds from the sale will be used to pay your creditors.
Non-Exempt vs. Exempt Assets
Non-exempt assets are property that the trustee can sell in a Chapter 7 bankruptcy case. They include your second homes, second cars, stocks, bonds, vacation homes, family heirlooms, bank accounts, cash, and other investments. You will still be left with your exempt assets, such as your house, primary car, furniture, household appliances, and clothing.
Get Help from an Experienced Law Firm
Filing for bankruptcy involves several complicated procedures. Knowing what to expect with your house and other property can help you better prepare. It is easier, however, to make costly mistakes without proper guidance or representation. When considering filing bankruptcy, it is important to speak with a knowledgeable Texas bankruptcy attorney for detailed guidance and to enlighten you on what will happen to your house.
At Oliva Law Bankruptcy, we have been providing experienced legal services and guiding clients through the complexities of bankruptcy for over 15 years. As your legal counsel, we will review your financial situation, explore your available legal options, and determine the right bankruptcy option for your unique condition. Our attorneys can advise you on how to protect your property, take proper precautions with your finances, and build a stronger future for yourself.
Contact us at Oliva Law Bankruptcy today to schedule a one-on-one consultation. Our staff can offer you the experienced legal counsel and advocacy you need to navigate key decisions in your bankruptcy proceedings. We proudly serve clients in McAllen, Harlingen, Corpus Christi, Brownsville, and throughout the Rio Grande Valley, Texas.