Foreclosure and Bankruptcy in Houston

Texas uses non-judicial foreclosure with a timeline of as few as 21 days after notice of default - the fastest in the United States. Bankruptcy can stop the process immediately.

This page provides general educational information, not legal advice. Consult a qualified attorney for advice about your specific situation.

Texas uses non-judicial foreclosure. Texas uses a non-judicial foreclosure process.

How Foreclosure Works in Texas

Texas uses a non-judicial foreclosure process. The lender must send a notice of default and give at least 20 days to cure. If you do not cure, the lender posts a notice of sale at least 21 days before the sale, which must occur on the first Tuesday of the month. There is no right of redemption after the sale. From missed payment to sale can be as fast as 60 days.

How Bankruptcy Stops Foreclosure

Filing bankruptcy triggers the automatic stay under 11 U.S.C. section 362, which immediately halts all foreclosure activity whether the foreclosure is just beginning, in progress, or about to happen.

Texas-Specific Foreclosure Issues

Texas foreclosure sales occur on the first Tuesday of each month at the county courthouse. Harris County alone processes hundreds of sales monthly. Because the timeline is so compressed, filing bankruptcy to invoke the automatic stay is often the only way to stop a sale that is days away.

Chapter 13: The Foreclosure Defense Tool

1File your Chapter 13 petition

The automatic stay immediately stops the foreclosure.

2Calculate your arrears

Determine the total amount of missed payments, late fees, and attorney fees.

3Propose a repayment plan

Spread arrears over 3-5 years while resuming regular payments immediately.

4Complete the plan

All arrears are cured and your mortgage is current. Other unsecured debts are typically discharged.

Homestead Exemption in Texas

Texas's homestead exemption protects UNLIMITED (up to 10 acres in urban areas, 100 acres rural - one of the most protective in the nation). This is critical in Chapter 7 for determining how much equity the trustee can reach. In Chapter 13, you keep all property and pay through your plan.

Frequently Asked Questions

How does foreclosure work in Texas?

Texas uses non-judicial foreclosure. Texas uses a non-judicial foreclosure process.

Can bankruptcy stop foreclosure in Houston?

Yes. Filing immediately triggers the automatic stay, which halts foreclosure regardless of how far along it is. Chapter 13 allows you to cure missed payments over 3-5 years.

How long does foreclosure take in Texas?

In Texas, foreclosure typically takes as few as 21 days after notice of default - the fastest in the United States.

What is the homestead exemption in Texas?

Texas provides a homestead exemption of UNLIMITED (up to 10 acres in urban areas, 100 acres rural - one of the most protective in the nation).

Can I get my house back after foreclosure in Texas?

Texas does not provide a right of redemption after a non-judicial foreclosure sale. Filing bankruptcy before the sale is critical.

Chapter 7 vs. Chapter 13 for foreclosure?

Chapter 7 delays foreclosure temporarily. Chapter 13 stops the sale and allows you to catch up on arrears over 3-5 years while resuming regular payments.

Check Your Eligibility

Use the free 1328(f) screener to check whether a prior discharge affects your eligibility for a new bankruptcy discharge.

Free Discharge Screener Means Test Guide

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