Legal Question in Bankruptcy in Texas

Re: Which One Do I File

Short answer -- under Ch. 7 or Ch. 13 it is very likely you will keep your house.

Texas law is extremely generous. There is no limit to the amount of equity in a homestead that a bankruptcy filer can "exempt" (keep in spite of creditors) in Ch. 7 or Ch. 13. In my experience the only issue as to whether to file under 7 or 13 deals with whether you are current on your mortgage payments or several months behind. If you are current (or one/two months behind) I would highly recommend you file under Ch. 7 and get complete relief. The process is much simpler -- basically 3 to 4 months instead of 3 to 4 years. READ MY FIRM'S PHILOSOPHY. Everyone deserves a chance to begin again.

If you have not been able to make your mortgage payments on the first and second and you are several months behind you probably need to file under Ch. 13. In a chapter 13 the attorney will propose a plan of reorganization for you. Basically this plan will take all of the past due mortgage payments and spread them over 36 to 60 months. However, you would need to resume making your regular monthly mortgage payments.

Please call me to discuss your specific situation in more detail. ph. (972) 231-5500 (800) 303-0720