Dealing with overwhelming debt can feel like a hopeless situation. While you may feel helpless to do anything to make the constant harassment from creditors stop or catch up on your outstanding balances, there are actually options available to you. If you are behind on your mortgage and are facing threats of losing your Texas home, you may consider the benefits of Chapter 13 bankruptcy.
Filing for bankruptcy can be a frightening prospect. There are many misconceptions about this process, but ultimately, it can be a positive way for you to confront debt and save your home from foreclosure. It can be useful to understand more about how this process works and what you should expect after filing.
The Chapter 13 bankruptcy process
Knowing more about the Chapter 13 bankruptcy process may help to alleviate some of your fears and help you move forward with confidence. If you qualify for Chapter 13, you must file your petition with the appropriate court. After that, you will also have to file paperwork pertaining to the following:
- Your assets and liabilities
- Current expenditures and income
- Unexpired leases
- Statement of current financial affairs
- Copy of your debt repayment plan
- Report of your net income, as well as evidence of any potential increase or decrease in income over the next months
- Copy of tax returns for the previous year
When filing for Chapter 13 bankruptcy, spouses may file jointly.
The automatic stay and more
Upon filing for bankruptcy, the automatic stay goes into effect. This means that creditors are no longer able to contact you through any means. This will also halt any proceedings against your property, including foreclosure. While under bankruptcy protection, the applicant can work to bring the outstanding mortgage balance current within a certain time period.
After filing the petition, there will be a meeting of creditors. During this proceeding, you will be under oath and must answer questions presented by the bankruptcy trustee and any creditors present. Questions may pertain to financial matters, plans to pay off debt and more.
Seeking a strong financial future
It is normal to have reservations and concerns about filing for bankruptcy. However, if you are dealing with the threat of losing your home, there is no time to lose in taking the necessary steps to protect your future. Chapter 13 bankruptcy may be the best choice to allow you secure a financially stable future, save your family residence and get rid of debt once and for all.