In Texas, thousands of families fall behind on mortgage payments each year, and foreclosure is often just around the corner. For many, losing a home doesn’t just mean relocating—it means financial ruin and emotional stress. But there is a legal tool that can help stop foreclosure in its tracks: Chapter 13 bankruptcy.

When time is running out and foreclosure notices are piling up, a Chapter 13 repayment plan can provide a much-needed pause. This type of bankruptcy allows individuals with regular income to restructure past-due debts—including mortgage arrears—into manageable monthly payments over three to five years.

This article explains how Chapter 13 works in Texas, when it’s a good option, and how it can help homeowners protect what matters most.

How Chapter 13 Bankruptcy Stops Foreclosure

Filing for Chapter 13 immediately triggers an automatic stay, which halts all foreclosure activity. This gives the homeowner breathing room to catch up on missed payments without fear of losing the house.

Here’s how it works:

  • Missed mortgage payments are includedin the repayment plan.
  • The homeowner keeps the propertywhile making regular payments.
  • The lender is legally barred from continuing foreclosureas long as the plan is followed.

Unlike liquidation under Chapter 7, Chapter 13 is focused on repayment rather than asset forfeiture.

When Chapter 13 Makes Sense in Texas

Filing for bankruptcy relief in Texas under Chapter 13 is often the right move when:

  • The homeowner has steady income but fell behind due to a temporary hardship.
  • There’s significant equity in the home that the owner wants to protect.
  • Other unsecured debts—like credit cards—are making it hard to pay the mortgage.
  • The homeowner has been denied or doesn’t qualify for a loan modification.

What Chapter 13 Can Cover

A Chapter 13 bankruptcy attorney can help structure a plan that covers:

  • Mortgage arrears
  • Property taxes
  • Car loans
  • Credit card balances
  • Medical bills

Some unsecured debts may be reduced or discharged at the end of the repayment period.

Considerations Before Filing

Before moving forward, it’s important to understand:

  • Chapter 13 requires a consistent monthly income.
  • Missing a plan payment can jeopardize the case.
  • The full mortgage payment must be resumed in addition to the plan.

Consulting with an experienced bankruptcy lawyer is key to understanding eligibility and obligations under Chapter 13.

A lawyer with their clients
As a dedicated bankruptcy attorney in Corpus Christi, Joel Gonzalez offers expert advice on Chapter 13 bankruptcy.

Is Your Home at Risk? There’s Still Time to Act

If foreclosure feels imminent, acting quickly could make the difference between keeping your home and handing over the keys. A qualified bankruptcy attorney in Corpus Christi, like Joel Gonzalez, can help you file for bankruptcy relief in Texas and guide you through the Chapter 13 process step-by-step. With years of experience helping local residents restructure debt and stop foreclosure, Joel offers the focused attention homeowners need during a difficult time.

Call the Law Office of Joel Gonzalez at (361) 654-DEBT today to speak directly with a Chapter 13 bankruptcy attorney who can help you take control and protect your home.