Almost always the answer is “Yes!”, IF you qualify for bankruptcy relief, and file before the date and time set out in the Notice of Foreclosure, Notice of Substitute Trustee Sale, or Notice of Sheriff’s Sale.

Different bankruptcies provide for different relief from the sale of your real estate.

The filing of a bankruptcy under Chapters 13, 11*, or 12 stops a home foreclosure, (or sale of your business, farm, or ranch property) AND ALLOWS YOU TO PROPOSE TO THE COURT A PLAN OF UP TO 5 YEARS TO RESTRUCTURE YOUR MORTGAGE ARREARS. Chapter 7 also stops a foreclosure, but only long enough for the bank to file a Motion to Lift Bankruptcy protection and start the foreclosure process again.

All foreclosure sales of Texas real estate happen on the first Tuesday of each month. (This date is sometimes referred to in Texas as “Foreclosure Tuesday”).

If you get a Notice of Foreclosure or Sale on your real estate, you should contact a bankruptcy lawyer immediately, and make arrangements to pay for and file your bankruptcy before the first Tuesday of the following month after your Notice of Foreclosure or Substitute Trustee Sale, or Sheriff Sale is mailed.

One of the many requirements of a legal foreclosure is that the Notice must have been mailed to you, certified mail, to the address shown in your loan and Deed of Trust papers, AT LEAST 21 DAYS BEFORE THE DATE NOTICED FOR FORECLOSURE, AND THE NOTICE MUST ALSO POSTED AT THE COURT HOUSE 21 DAYS BEFORE FORECLOSURE TUESDAY.

Unfortunately, Texas law does not require that you actually receive the Notice, only that the Notice be timely mailed to you at the correct address in your bank or mortgage papers by the 21-day deadline. Therefore, it is extremely important that you pick up your certified mail, or your property can be sold without your knowledge).

*Chapter 11 is an expensive kind of bankruptcy for individuals, corporations, or partnerships, and sometimes allows additional relief with regard to mortgages on real estate. You must make an appointment to discuss the complex relief which may be available to you by Chapter 11.