Texas's homestead exemption protects Unlimited (10 acres urban) of equity in your home. Combined with Chapter 13's mortgage cure provisions, most Houston homeowners can keep their homes through bankruptcy.
In most cases, yes. Texas's homestead exemption protects Unlimited (10 acres urban) of equity. In Chapter 13, you can keep your home and cure mortgage arrears over 3-5 years.
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). This protects equity in your primary residence from creditors and the bankruptcy trustee.
How equity works: If your home is worth $300,000 and you owe $250,000, your equity is $50,000. Since Texas's homestead exemption is unlimited in value, all equity is protected regardless of amount.
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.
Chapter 13 is the most powerful tool for Houston homeowners facing foreclosure:
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.
In most cases, yes. Texas's homestead exemption protects Unlimited (10 acres urban) of equity. In Chapter 13, you can keep your home and cure mortgage arrears over 3-5 years.
Texas protects UNLIMITED (up to 10 acres in urban areas, 100 acres rural - one of the most protective in the nation).
Texas uses non-judicial foreclosure. The typical timeline is as few as 21 days after notice of default - the fastest in the United States.
Yes. Filing Chapter 13 immediately stops foreclosure through the automatic stay. You can cure your mortgage arrears over 3-5 years while resuming regular payments.
In Chapter 7, you must be current on your mortgage to keep your home. Chapter 7 can eliminate other debts, freeing up income to make mortgage payments.
In Chapter 13, if your home is worth less than your first mortgage, you may strip off your second mortgage entirely under 11 U.S.C. section 1322(b)(2). This can save tens of thousands of dollars.
Use the free 1328(f) screener to check whether a prior discharge affects your eligibility for a new bankruptcy discharge.
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