Effective debt relief solutionsCall for a free case review
Chapter 7 bankruptcy allows individuals to discharge all unsecured debt, essentially wiping their debts clean after liquidating non-exempt assets and paying off all their creditors. It is very important that you speak with a Fort Worth bankruptcy attorney to learn about the benefits and whether or not Chapter 7 bankruptcy is right for you.
At The Pritchard Law Firm, we are known for our experience and professionalism. Although bankruptcy can carry quite a bit of social stigma, it is actually an honest solution. Bankruptcy allows individuals like you push the restart button on their debt and start over financially. We all deserve second chances.
Texas allows for generous bankruptcy exemption of certain assets, including homestead exemptions. We can go over all the details and let you know what you can expect out of your case.
In some cases, certain debts will not be discharged. This can include child support, criminal fines, court fees, restitution, alimony payments, student loans, and certain back taxes. It is important to have an attorney explain the differences to you before you file for bankruptcy.
Creditor harassment is very common for debtors. But when you file for bankruptcy, creditors are prohibited from contacting you about debt collection.
After you file for bankruptcy, the Court will mail a “341 Notice” to your creditors. At this point, creditors are no longer allowed to contact you to collect debt. If they do, then advise them of the 341 notice, make a record of each attempt to contact you, and talk to an attorney about how to protect your rights.
If you are concerned about what property you can keep when you file for Chapter 7 bankruptcy, you should know that most personal items will be exempt. Approximately 90% of individuals who file for bankruptcy are able to keep all of their personal property. Properties that are exempt under Chapter 7 include pensions, social security, 401k, unemployment compensation, damages (for a personal injury case), household goods and appliances, automobiles, equity in your home, and jewelry and clothing.
Once the right-to-cure period has expired and the notice of acceleration sent, notice of the foreclosure sale must be provided. Texas law requires that the Notice of Sale must be provided to the borrower and posted and filed in the county courthouse of the county where the property is located. Beyond serving notice on the borrower, Texas law requires that notice also be given to each obligor on the indebtedness, including guarantors. Failure to provide notice to any obligor may prevent the lender from pursuing that obligor for any remaining deficiency although it will not void the foreclosure sale. Texas law does not require that prior lienholders or owners of the property (if other than the deed of trust lien grantor) be given notice of foreclosure. Further, superior lienholders are not required to be given notice, as their rights are unaffected by the foreclosure. The foreclosure notice must also specify the time and place of the sale. In Texas. foreclosure sales may only be held on the first Tuesday of the month following 21 days notice. The sale may only be conducted between the hours of 10:00 and 4:00 p.m. and they must be conducted at the place designated by the commissioners’ court of the county where the property is located.
The pubic sate of the property must be conducted by the trustee or a validly appointed substitute trustee. A sale conducted by anyone else is void.
When conducting the sale, the trustees simply read a copy of the posted Notice of Sale or prepared script reciting the pertinent facts such as the lien information and the property description and then announce thatthey will accept bids.
The deed of trust generally states sale must be a cash sate and the trustee must give the winning bidder a reasonable opportunity to obtain cash and return with it at the time when the sale is to be reconvened later that same day and prior to 4:00p.m. when the sale may be completed. If the winning bidder is unable to obtain the necessary funds, the sale is made to the next highest bidder at the time of the reconvened sale.
The vast majority of foreclosure sales in Texas, the mortgagee will buy the property by bidding as a credit against the secured debt. A very small percentage of properties sold at foreclosure are sold to third-party bidders.
One who purchases at a foreclosure sale takes the property at their peril. The conveyance from the borrower is similar in certain respects to a quitclaim deed. This means that a prospective purchaser at a foreclosure sale takes substantial risk unless he has previously investigated title to the property to determine if there are any superior liens against the property. If there are superior liens against the property, whoever purchases at foreclosure will take title subject to those superior liens, as well as to parties in possession.