If you’re having trouble making mortgage payments in Texas, you might not have to file for bankruptcy just yet. Certain people qualify for loan forbearance from the government. This gives you the chance to get on top of your finances and pay off some of your other debts.
What is loan forbearance?
If you have a federally funded mortgage, you might qualify for loan forbearance. This means that you’ll be able to pause your loan payments for up to 180 days. During this time, your loan won’t accrue interest like it would normally. You can save up some money, get some of your other debts paid off and possibly avoid filing for bankruptcy.
If 180 days isn’t enough, you can request an extension for another 180 days. Loan forbearance gives you a break from paying your mortgage, but it doesn’t make the debt go away; you’ll still have to pay the entirety of your mortgage when the forbearance period is over. You might want to talk to a bankruptcy attorney if you still can’t stay on top of your debts after going through the forbearance process. Filing for bankruptcy could help you wipe out your mortgage although you might have to sell some assets in the process.
Should you file for bankruptcy?
Many people avoid filing for bankruptcy because they don’t want to damage their credit score. However, your credit score is already going to drop if you can’t make your mortgage payments. Filing for bankruptcy could help you start over with a clean slate.
If you’re not sure if bankruptcy is the right decision for you, talk to an attorney. You could discuss your options and figure out how to proceed if you can’t pay off your debts. Your attorney might even help you discover how to pay off your debts without filing for bankruptcy.