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VanDLaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 833
Experience:  Chapter 7 & 13
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What do I need to do . I am planning to let my house go back

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What do I need to do . I am planning to let my house go back to the banks , I owe it to. Has not been any work in Minnesota for 1 and 1/2 years . So I have been working all over the country. I am know working in Texas, wheir I have bought a mobile home, to live in on contract. My home in Minnesota cost to much to keep up with, and the value has dropped below what I owe. What do I do to protect what I have left in Texas after I let my home in Minnesota go. I plan on stopping payments this month . I have already turned over most of my credit cards to allegro law to try and settle. Which has destroyed my credit. I am 61 and the wife is 66, and we can not keep living like this. What would be the best thing to do. We can afford living in mobile home in TEXAS. , but not minnesta home . I know it we take the banks time to repro house after I stop payments, but will I have major problems down the line.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  VanDLaw replied 7 years ago.



If you file a Chapter 7 bankruptcy in Texas, after you have been a resident for six months and declared homestead, the deficiency judgment (the difference between what you owe and what they sell the property for) is discharged (goes away), and they cannot take your mobile home, or any homestead you declare. Also, your retirement funds are exempt (protected) and cannot be taken by the bankruptcy court. Additionally, any unsecured creditors (credit cards, medical bills, etc.) are also discharged. Bankruptcy stays on your credit repor for 10 years, and securing any type of loan could prove to be difficult, but not impossible.


Your best option is to seek a consultation with a Texas bankruptcy attorney in your area. Most give free consultations and you can go over your specific financial situation in detail.


Foreclosures can take anywhere from 4 - 12 months once you stop paying the mortgage payments. Usually after about 2-4 missed payments you will start getting pre-foreclosure documentation.



Customer: replied 7 years ago.
Expert:  VanDLaw replied 7 years ago.

Yes, in order to file in Texas you must have lived in the State for the previous 180 days. Otherwise you have to file in the state you are currently a resident of.


To use the full value of the Texas homestead exemption, which allows unlimited exemption of homestead equity, the debtor must have been domiciled in Texas for 40 months, with residency in Texas for the greater part of the six months preceding the petition/filing. Texas debtors with less than 40 months of domiciliary status can claim only $125,000 of equity per spouse as their homestead exemption. That is still a high homestead exemption by general American standards and may cover you in the mobile home.

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