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If you seem to be behind on your mortgage or payment of car you have been trying to review your debt relief options. The options available are not many to help you come out from debts and then allow you to protect maybe your home or your car from being override by creditors. Meanwhile, the protection of bankruptcy can, just be enough to, stop a foreclosure or repossession when you are been caught up on your debts.

While you file for protection of bankruptcy, an automatic stay can be issued to prohibit creditors from collecting such on debts. This can also prevent you mortgage lender to pursue a foreclosure or car loan creditor from overriding your car through repossession. When you go through the bankruptcy process, you can be rest assured that most of your assets and property will definitely be protected from the creditors’ hands. This kind of protection is from the state or federal-level, exemption laws of bankruptcy that helps to outline what amount of property is protected during the bankruptcy.


When you are trying to protect your car from repossession, few things are to be considered. The first is to try to contact your car loan lender quickly when you start to miss payments. You should do this before you file for bankruptcy protection. Most of the times creditors are willing to modify a loan through negotiate which can help to reduce your monthly payments. A car loan lender loses some amounts of money through a repossession and it is better they modify the terms of your car loan than to risk losing more through an act of repossession. Meanwhile, time is crucial when you are trying to modify a loan through negotiation with your car loan lender, so, it is better not to wait because it might be too late.

The second thing to consider is the federal bankruptcy exemption laws which can allow protection of one vehicle up to $3,450. But this may not be much, so it is better to review the kind of exemption you have in your state. Fort Bend County Texas will allow for the protection of one vehicle, with an unlimited value, for each member of the household.

The third thing is if your state exemption laws do not offer enough protection of your vehicle you can consider to file for Chapter 13 bankruptcy rather than go for Chapter 7. With Chapter 13, you can be able to negotiate repayment plan of debt with your car loan creditor. The repayment plan will allow spacing out your debt repayments for several years. Since you are now under the approved repayment plan and still making consistent payments, this will allow you to keep your car.

So, filing for Chapter 13 bankruptcy can instantly stop car loan creditors to pursue any collection action of debt against you. And this will include foreclosure proceedings.

There are large numbers of potential foreclosures right now; most banks are doing all what they can to keep a vehicle out of foreclosure. Then, if you are just a few months behind on paying mortgage, it is advisable to talk to your lender instantly so that he can work out a plan so that any action won’t be taken against you. If you are unable to pay for 90 days and more, this will be so hard for a traditional lender to work out something for you.

Then, if your mortgage has further past-due than the stimulated time, and then foreclosure proceedings have started, you still have other options aside bankruptcy. If you’ve spoken to a professional, and feel that bankruptcy is the only option you have, just go about it with a good conscience. Most times, many people have failed to pursue this kind of option because they feel that filing bankruptcy is wrong. But bankruptcy can stop foreclosure if you want to keep your vehicle.

Filing bankruptcy mean that you are telling the courts that you want to work out a plan of payment so that you can pay off the arrears of your mortgage. In Fort Bend County Texas, this can work for a vehicle that is almost repossessed or that has been repossessed within 10 days of the repossession. With Chapter 13 you have the opportunity likewise the time to get back on track.

Please visit our website for more information about us and bankruptcy. Call us today at (713) 974-1151 to schedule a no-obligation consultation or feel free to email us at [email protected]


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Michael Busby is a Houston divorce lawyer who has been in practice for over 20 years and appears daily in the Family Law Courts of Harris County and Fort Bend County Texas

Busby & Associates , have two Houston Offices, one in Chinatown, Houston Texas and another in Independent Heights, Houston, Texas. Michael Busby is Board Certified in Family law by the Texas Board of Legal Specialization.