I was down at the courthouse on a Chapter 13 case yesterday, where the clients had waited too long to file bankruptcy, and the foreclosure occurred. We have brought an action to invalidate the foreclosure, but it will likely be a lot more work to reverse the foreclosure, at considerable more expense, than if the Chapter 13 had been filed before the foreclosure sale took place.

Filing Chapter 13 bankruptcy brings into effect the "automatic stay" which is a federal court order that temporarily at least, stops all collection actions against the person that filed the case. So, repossessions, foreclosures, collection calls, lawsuits, garnishments, etc. are all stopped.

In Chapter 13, the debtor (the person that filed the case) with the assistance of their attorney, files a plan that usually includes catching up any past due mortgage payments over as long as 5 years. Many people who were out of work for a period of time, or ill, etc. are able to catch up their mortgages, while maintaining their regular mortgage payments through a Chapter 13 plan.

Chapter 13 can also let you pay your vehicle loan out over time, and deal with your unsecured debt in a manner that you can afford. If you are interested in seeing how Chapter 13 can help you reorganize your finances, and potentially save your house, vehicles or other property, and you live in the Houston, Texas area, give my office a call at 713-772-8037, and make an appointment to meet with me. I offer a free first consultation to evaluate your situation and see if Chapter 13 or some other remedy would be best for you.

J Thomas Black
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Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization
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