It is surprising how many people wait until the week, or even day, and occasionally hour, before a foreclosure of their home to contact a Bankruptcy Attorney. So here are a few items that those who are facing a foreclosure should be aware of.
- Acceleration of your loan means that you owe the entire debt on your home, not just the amount of missed payments.
- Once your loan is accelerated the lender has to collect from you. It is actually a duty on their part.
- It is also a duty that your lender must let you apply for refinancing but few in Texas will be eligible and the delay does not protect you against accruals.
- You can cure pre-petition defaults and reinstate a mortgage in Bankruptcy Courts in Texas in either a Chapter 13 or Chapter 11 case.
- You cannot cure defaults in a Chapter 7 case.
- You can stop a foreclosure by filing for Bankruptcy protection any time until a winning bid has been accepted.
- You must take a consumer credit counseling course before you can file for Bankruptcy, the course takes a little under 2 hours.
- You must prove your identity, ownership, and eligibility for bankruptcy to any attorney before they can file your Petition for Bankruptcy.
- You do not have to be insolvent to file for Bankruptcy.
- You cannot both keep your house and get out of your debt in Bankruptcy if you have a properly recorded mortgage or deed of trust on your home.
Bottom line, if you are facing foreclosure, have defaults on your home mortgage, or have been invited to apply for mortgage relief, you need to talk to an experienced Bankruptcy attorney right away.