What happens to my home if I file for bankruptcy during a foreclosure?

If you file for bankruptcy during a foreclosure in Texas, it can stop the foreclosure process temporarily. When you file for bankruptcy, an “automatic stay” is put in place, which stops creditors from collecting debt. It also stops the foreclosure process while your bankruptcy case is pending in court. However, the stay is not permanent and may only last until your bankruptcy case is complete. If the bankruptcy court confirms a repayment plan to your creditors, the lender may resume the foreclosure. If a lender does resume the foreclosure, it must provide you with a “Notice of Resumption”. This notice explains how much time you have to get current with your mortgage payments. In most cases your repayment plan will include a payment plan to catch up on the payments you owe. Failure to stick to the repayment plan may result in the foreclosure process resuming. You may also attempt to negotiate with your lender if you cannot afford the proposed payment plan. You may be able to have your payments reduced or enter into a loan modification agreement. However, your lender is not obligated to accept a loan modification. In a foreclosure, you may also try to sell the house to pay off the debt. However, the lender must agree to the sale and approve the buyer. If you cannot find a buyer, you may lose your home. Bankruptcy can provide temporary relief from the foreclosure process, however, it is important to understand that it is not a permanent solution.

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What happens to my home if I file for bankruptcy during a foreclosure?

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