Can Chapter 13 Bankruptcy Stop Foreclosure in Texas?

 Posted on January 19, 2026 in Chapter 13 Bankruptcy

Facing foreclosure on your home in 2026 is one of the most stressful situations any family can experience. The thought of losing the place where you raised your children, celebrated holidays, and built memories is terrifying and angering. If you have fallen behind on mortgage payments, you might wonder if there is any way to stop the foreclosure process and keep your home.

Chapter 13 bankruptcy can stop foreclosure in Texas, often within hours of filing. This powerful legal tool creates an immediate halt to all collection activities, including foreclosure sales. For good people going through hard times, Chapter 13 offers a path to catch up on missed mortgage payments while keeping your home. 

Understanding how the foreclosure process works and how bankruptcy can stop it will help you make better decisions about protecting your property. And our Board-Certified Waller County, Texas bankruptcy and foreclosure attorney is here to help. 

How Does the Foreclosure Process Work in Texas?

Texas is a non-judicial foreclosure state, which means lenders do not need to go through court to foreclose on your home. This makes the Texas foreclosure process faster than in many other states. Once you miss mortgage payments, your lender will typically send notices demanding payment. If you cannot catch up, the lender can schedule a foreclosure sale.

Under Texas Property Code Section 51.002, the lender must give you at least 21 days written notice before the foreclosure sale. The notice must tell you the earliest time and date the sale can occur, and it must be sent by certified mail. Foreclosure sales in Texas usually happen on the first Tuesday of each month at the county courthouse.

The speed of Texas foreclosure means you have less time to act than homeowners in other states. From the first missed payment to losing your home can happen in as little as a few months. This is why taking action quickly is so important when you fall behind on mortgage payments.

What Happens at a Texas Foreclosure Sale?

Foreclosure sales in Waller County are between 10:00 a.m. and 4:00 p.m. on the courthouse steps. The property goes to the highest bidder, usually the mortgage lender itself. Once the sale is complete, you typically have very little time to leave the property. In many cases, new owners can begin eviction proceedings immediately after the foreclosure sale.

Can Filing Chapter 13 Bankruptcy Stop a Foreclosure Sale?

Filing Chapter 13 bankruptcy immediately stops a foreclosure sale through something called the automatic stay. The automatic stay is a federal court order that goes into effect the moment you file your bankruptcy petition. Under 11 U.S.C. Section 362, the automatic stay prohibits creditors from continuing any collection activities, including foreclosure sales.

The automatic stay stops the foreclosure even if the sale is scheduled for the next day. Many people file emergency bankruptcy petitions to stop foreclosure sales that are just hours away. Once the bankruptcy is filed, the lender must cancel the foreclosure sale and cannot reschedule it without getting permission from the bankruptcy court.

This immediate protection gives you breathing room to work out a plan to save your home. While Chapter 7 bankruptcy also triggers an automatic stay, it only provides temporary relief. Chapter 13 is the better option for homeowners who want to keep their property because it allows you to catch up on missed payments over time.

How Does Chapter 13 Help You Keep Your Home After Foreclosure Starts?

Chapter 13 bankruptcy is sometimes called a "wage earner's plan" because it allows people with regular income to reorganize their debts. You create a repayment plan lasting three to five years. During this time, you make monthly payments to a bankruptcy trustee who distributes the money to your creditors according to the plan.

For mortgage debt, Chapter 13 lets you catch up on missed payments gradually while continuing to make your regular monthly mortgage payment. The amount you are behind, called the arrearage, gets spread out over the length of your repayment plan. This makes catching up much more affordable than trying to pay thousands of dollars all at once.

Requirements for Using Chapter 13 to Stop Foreclosure

To use Chapter 13 bankruptcy to save your home, you must meet certain requirements:

• You must have a regular income to make monthly plan payments

• You must continue making your current mortgage payments on time

• You must make your plan payments to catch up on arrears

• Your secured and unsecured debts must fall within statutory limits

Missing plan payments or falling behind on your current mortgage can result in the bankruptcy court lifting the automatic stay, which would allow the foreclosure to proceed.

Can I Use Chapter 13 to Get My Hope Back if the Foreclosure Sale Already Happened?

Once a foreclosure sale is complete in Texas, bankruptcy generally cannot reverse it. The sale transfers ownership of the property to the buyer, and bankruptcy cannot undo that transfer. If you are facing foreclosure, you need to act before the sale date.

However, if the lender violated Texas foreclosure laws or made procedural errors, you might have grounds to challenge the sale. An attorney can review the foreclosure process to determine if any violations occurred that might give you legal options even after the sale.

Call a Waller County, TX Foreclosure and Bankruptcy Attorney Today

If foreclosure threatens your home, you do not have to face it alone. Our Liberty County, TX foreclosure and bankruptcy lawyer helps good people get through hard times by filing Chapter 13 bankruptcy to stop foreclosure and create a realistic plan to save your home. 

Time is critical when facing foreclosure in Texas, so taking action now gives you the best chance of protecting your home. Call The Fealy Law Firm, PC at 713-526-5220 today for a free consultation to discuss your options.