Will Chapter 13 Save Your House in Texas?
Worried about losing your home? Learn how Chapter 13 bankruptcy in Texas can stop foreclosure, protect your house, and give you a fresh start.
For many Texans, the thought of losing a home is terrifying. A house is more than walls and a roof—it represents family, safety, and stability. When financial struggles lead to bankruptcy, homeowners often ask: “If I file Chapter 13 in Texas, will I lose my house?”
The good news is that Chapter 13 bankruptcy was created to help people keep their homes while managing debt. This article explains how Chapter 13 works in Texas, how it affects foreclosure, and what you must do to protect your home.
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The good news is that Chapter 13 bankruptcy was created to help people keep their homes while managing debt. This article explains how Chapter 13 works in Texas, how it affects foreclosure, and what you must do to protect your home.
Can I Lose My House If I File Chapter 13 in Texas?
In most situations, the answer is no. Chapter 13 does not take away your home. Instead, it provides a structured repayment plan that allows you to catch up on past-due mortgage payments over time.
Unlike Chapter 7 bankruptcy, which may involve selling property to pay creditors, Chapter 13 is about reorganization. As long as you keep making required payments, you will likely keep your house.
In most situations, the answer is no. Chapter 13 does not take away your home. Instead, it provides a structured repayment plan that allows you to catch up on past-due mortgage payments over time.
Unlike Chapter 7 bankruptcy, which may involve selling property to pay creditors, Chapter 13 is about reorganization. As long as you keep making required payments, you will likely keep your house.
Will Chapter 13 Stop Foreclosure in Texas?
Yes. One of the strongest protections in bankruptcy is the automatic stay, which takes effect immediately after filing. The automatic stay stops foreclosure in its tracks.
Even if your lender was only days away from auctioning your home, the stay freezes the process. This gives you valuable time to prepare a repayment plan and show the court that you can get back on track.
Yes. One of the strongest protections in bankruptcy is the automatic stay, which takes effect immediately after filing. The automatic stay stops foreclosure in its tracks.
Even if your lender was only days away from auctioning your home, the stay freezes the process. This gives you valuable time to prepare a repayment plan and show the court that you can get back on track.
Do I Still Have to Pay My Mortgage During Chapter 13?
Yes. Filing Chapter 13 does not eliminate your mortgage. You must continue making your regular monthly mortgage payments.
At the same time, any missed payments from the past (called arrears) are included in your Chapter 13 plan. Over the next three to five years, you pay them back in manageable installments.
This system allows you to keep your house and avoid foreclosure while catching up on overdue amounts.
Yes. Filing Chapter 13 does not eliminate your mortgage. You must continue making your regular monthly mortgage payments.
At the same time, any missed payments from the past (called arrears) are included in your Chapter 13 plan. Over the next three to five years, you pay them back in manageable installments.
This system allows you to keep your house and avoid foreclosure while catching up on overdue amounts.
How Does the Automatic Stay Protect My House?
The automatic stay is like a legal shield. Once in place, it:
The automatic stay is like a legal shield. Once in place, it:
- Stops foreclosure immediately.
- Prevents creditor lawsuits and wage garnishments.
- Halts collection calls and letters.
What If I Fall Behind on My Mortgage After Filing Chapter 13?
Chapter 13 gives you a chance to fix past problems, but it does not excuse new ones. If you fall behind on your mortgage again after filing, your lender can ask the court to lift the automatic stay and continue foreclosure.
If this happens, you may still have options:
Chapter 13 gives you a chance to fix past problems, but it does not excuse new ones. If you fall behind on your mortgage again after filing, your lender can ask the court to lift the automatic stay and continue foreclosure.
If this happens, you may still have options:
- Request a plan modification to reduce payments.
- Apply for a loan modification directly with the lender.
- Seek temporary relief if your income changes.
How Do Texas Homestead Exemptions Work in Bankruptcy?
Texas law gives homeowners some of the strongest protections in the United States. The Texas homestead exemption shields your primary residence from most creditors, no matter how valuable it is.
This means that, combined with Chapter 13, your home is even safer. While other states place dollar limits on home protection, Texas law focuses on acreage and property type, making it easier for families to protect their residences.
Texas law gives homeowners some of the strongest protections in the United States. The Texas homestead exemption shields your primary residence from most creditors, no matter how valuable it is.
This means that, combined with Chapter 13, your home is even safer. While other states place dollar limits on home protection, Texas law focuses on acreage and property type, making it easier for families to protect their residences.
Can the Court Force Me to Sell My Home If I Have Equity?
In Chapter 7, high home equity could lead to the sale of your property. Chapter 13 works differently. The court does not force you to sell your house.
Instead, if you have significant equity, your repayment plan may require higher payments to creditors. The important point is: you still keep your home, but you pay more through the plan to balance fairness.
In Chapter 7, high home equity could lead to the sale of your property. Chapter 13 works differently. The court does not force you to sell your house.
Instead, if you have significant equity, your repayment plan may require higher payments to creditors. The important point is: you still keep your home, but you pay more through the plan to balance fairness.
How Long Does a Chapter 13 Plan Last in Texas?
Most Chapter 13 repayment plans last three to five years. During this time:
Most Chapter 13 repayment plans last three to five years. During this time:
- You make monthly payments to a trustee.
- The trustee distributes money to creditors, including your mortgage lender.
- If you stay on track, you will exit bankruptcy with your mortgage current and your home protected.
What Are the Requirements for a Chapter 13 Repayment Plan?
To qualify for Chapter 13, you must have steady income. The court needs proof that you can afford ongoing mortgage payments while also paying back arrears and other debts.
A Chapter 13 plan usually includes:
To qualify for Chapter 13, you must have steady income. The court needs proof that you can afford ongoing mortgage payments while also paying back arrears and other debts.
A Chapter 13 plan usually includes:
- Your regular mortgage payments.
- Any overdue mortgage amounts.
- Priority debts, such as taxes or child support.
- Some payment toward unsecured debts like credit cards.
What Happens After I Complete My Chapter 13 Plan?
Finishing a Chapter 13 plan is a major achievement. Once completed:
Finishing a Chapter 13 plan is a major achievement. Once completed:
- Your mortgage arrears are fully paid.
- Many unsecured debts are discharged.
- Your mortgage should now be current, meaning you continue with normal payments going forward.
Is Chapter 13 the Best Way to Save My House in Texas?
For most homeowners facing foreclosure, yes. Chapter 13 is specifically designed to save homes.
Compared to Chapter 7:
Bottom LineIf you file Chapter 13 in Texas, you will not automatically lose your house. In fact, Chapter 13 is one of the most powerful tools for keeping a home during financial hardship. With the automatic stay, Texas homestead exemption, and a repayment plan, you can stop foreclosure and catch up on mortgage payments.
The key to success is discipline: you must continue paying your mortgage and follow your repayment plan faithfully. Every case is different, so consulting a Texas bankruptcy attorney is the best way to understand your specific rights and options.
For most homeowners facing foreclosure, yes. Chapter 13 is specifically designed to save homes.
Compared to Chapter 7:
- Chapter 7 may risk non-exempt assets, including equity in a home.
- Chapter 13 allows you to keep assets, repay debts over time, and cure mortgage arrears.
- If your primary goal is to protect your home, Chapter 13 is often the strongest option available.
The key to success is discipline: you must continue paying your mortgage and follow your repayment plan faithfully. Every case is different, so consulting a Texas bankruptcy attorney is the best way to understand your specific rights and options.
Legal Disclaimer
This article is for general information only. It is not legal advice. For guidance on your specific situation, please consult a qualified bankruptcy attorney in Texas.
This article is for general information only. It is not legal advice. For guidance on your specific situation, please consult a qualified bankruptcy attorney in Texas.
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