What happens when falling behind on mortgage payments threatens the roof over your head? It’s a stressful question more Texans are asking every day. But here’s something most don’t realize: bankruptcy—when used the right way—can be a powerful tool to help protect your home, thanks to strong homestead protections in Texas.
At the Law Office of Joel Gonzalez, we help individuals understand how bankruptcy laws can work in their favor—especially when it comes to keeping their homes. With deep knowledge of homestead protections and personalized legal guidance, we offer solutions for Texans in financial distress.
This blog breaks down how bankruptcy affects homeownership, whether Chapter 7 or Chapter 13 works better for saving a home, and what other strategies may help stop foreclosure.
How Texas Homestead Protections Work
Texas offers some of the strongest homestead protections in the country. These laws safeguard your primary residence from most creditors when you file for bankruptcy. Here’s what that means:
- Your home equity is protectedup to a generous limit, often covering the full value of the home.
- These protections apply in both Chapter 7 and Chapter 13 filings, depending on your specific situation.
- You must meet residency requirements and use the property as your principal residence to qualify.
That said, homestead protections don’t prevent foreclosure if you’ve fallen behind on your mortgage. But that’s where bankruptcy can step in and provide extra help.
Chapter 7 Bankruptcy and Homeownership
Chapter 7 bankruptcy, also known as liquidation bankruptcy, helps wipe out unsecured debt like credit card balances and medical bills. It may be a good fit if you’re current on your mortgage or only slightly behind and want to protect the equity in your home.
How it helps:
- Frees up monthly income by eliminating other debts.
- Homestead protectionscan shield your home from being sold by the trustee.
- Gives you a clean slate if you can keep up with mortgage payments going forward.
But beware: If you’re far behind on your mortgage, Chapter 7 won’t stop foreclosure in the long term.
Chapter 13 Bankruptcy: A Path to Catch Up
Chapter 13 is often a better option for those trying to save a home. This type of bankruptcy creates a repayment plan that lasts three to five years.
Key benefits include:
- Stops foreclosure immediately through an automatic stay.
- Allows you to catch up on missed mortgage payments over time.
- Lets you keep your home while managing other debts.
If you’re behind on payments and want a structured plan to fix it, this option works well with Texas’s strong homestead protections.
Other Strategies to Prevent Foreclosure
Bankruptcy isn’t the only option, but it can be the most reliable one if time is running out. You might also consider:
- Loan modificationthrough your lender
- Forbearance plansto temporarily pause payments
- Short salesor deeds in lieu of foreclosure (if keeping the home isn’t possible)
Still, these routes don’t offer the same legal shield as filing for bankruptcy relief in Texas.
Wondering If Bankruptcy Can Help You Save Your Home?
The answer depends on where you stand financially—but with the right approach, bankruptcy can be a lifeline. And in Texas, homestead protections give you a strong advantage. Whether you’re just falling behind or already facing foreclosure, it’s important to act quickly and understand your options.
The Law Office of Joel Gonzalez focuses on helping people like you protect what matters most—their homes. As a trusted bankruptcy lawyer in Corpus Christi, Joel Gonzalez offers honest, direct guidance backed by experience. If you’re looking for a bankruptcy attorney who understands the power of Texas homestead protections and how to use them to your advantage, this is the place to start.
Contact the Law Office of Joel Gonzalez today to discuss how bankruptcy may help you stop foreclosure, eliminate debt, and keep your home—while staying in control of your financial future.
