What Happens To Your Texas Home In Bankruptcy? For most Texans, a home is more than just real estate; it’s safety, stability, and legacy. So when financial troubles lead to a potential bankruptcy filing, the first concern is often: “Will I lose my house?” The good news is that with the right plan and t he help of a compassionate bankruptcy lawyer , most people can protect their home when filing for bankruptcy in Texas. Texas Homestead Exemption – Powerful Protection Texas offers one of the most generous homestead exemptions in the country. This means your primary residence is often protected from creditors during bankruptcy, no matter how much equity you have. Whether you live in Austin or elsewhere in the state, the Texas Property Code typically allows you to keep: • An urban home on 10 acres or less. • A rural home on up to 100 acres (200 for families). This exemption applies in both Chapter 7 and Chapter 13 bankruptcies. However, certain limits may apply if you’ve recently moved to Texas or acquired the property within 1,215 days of filing. A bankruptcy lawyer will guide you through those rules. Chapter 7: Keeping Your Home If You’re Current If you’ re current on mortgage payments, you can usually keep your home in Chapter 7, as long as it’s protected by the homestead exemption. You’ll need to keep making your mortgage payments on time; bankruptcy doesn’t wipe out secured debt unless you surrender the property. If you’re behind, Chapter 7 may not help much to stop foreclosure. That’s where Chapter 13 becomes a better fit. Chapter 13: Catching Up On Mortgage Arrears Chapter 13 bankruptcy allows you to catch up on missed mortgage payments over time, typically 3 to 5 years, while stopping foreclosure through the automatic stay. This can save your home even if you’re months behind, as long as you can keep up with ongoing payments going forward. A bankruptcy lawyer will work with you to build a realistic repayment plan that includes both mortgage arrears and other debts. What If You Want To Walk Away? Sometimes, homeowners decide it’s better to let go of the property especially if they owe more than it’s worth or can’t afford the payments. Bankruptcy allows for surrendering the home and wiping out any remaining mortgage debt. This protects you from defi ciency judgments (where lenders try to collect the unpaid balance after a foreclosure sale). Your attorney will help you weigh emotional, financial, and legal factors before making that decision. What About Property Taxes & HOA Fees? Bankruptcy can help address property tax debt and unpaid HOA dues, but timing is crucial. Some of these debts can be included in Chapter 13 plans. Others, especially post - filing HOA fees, may still be your responsibility if you keep the home. Member Spotlight Austin Bankruptcy Lawyers 3800 N Lamar Blvd #200 Austin, Texas 78756 (737) 338 - 3779 https://www.austinbankruptcylawyers.com/ Get Map Direction : - https://maps.app.goo.gl/v6twGXR8MTHGsHJg8 When your home is on the line, a knowledgeable bankruptcy lawyer can help you understand your rights under Texas’s powerful homestead exemption laws. Whether you need to stop foreclosure, catch up on mortgage payments, or decide whether to surrender the home, legal guidance ensures you make informed, strategic choices. Bankruptcy doesn’t always mean losing your house; in many cases, it’s the tool that saves it.