These days, many Texas homeowners find it difficult to make ends meet. When this is the situation, even what may seem like a relatively small setback can have a ripple effect sending hard-working people into a world of late payments, and sometimes even foreclosure.

This is exactly what happened recently to a single mother of two living in Saint Louis. She was living off of approximately $2,000 per month and barely making ends meet, when she was in a car accident and totaled her vehicle. Unfortunately, this was all it took for her finances to unravel.

Without a reliable form of transportation, she felt that she needed to purchase a car. How did she pay for the $1,500 vehicle she was able to locate? With money that was earmarked for her home mortgage.

She says she missed two payments and wrote the lender a note explaining her situation. Specifically, the note promised to make additional payments until she was caught up, and that her anticipated income tax refund would cover the amount she owed in full.

While she did make timely mortgage payments for two months along with an additional amount, she was then late again on her mortgage payment. The lender then refused payment and she soon discovered that her home was subject to imminent foreclosure.

So what is this homeowner to do? She is currently considering filing for Chapter 13 bankruptcy, which may enable her to reorganize all of her debt and prevent foreclosure. She is determined not to lose her home and has discovered that bankruptcy law may help her plight.

Stay tuned for more from our San Antonio bankruptcy blog ...

Regardless of your financial situation, contact an experienced legal professional to learn more about your rights and your options under Chapter 7 bankruptcy or Chapter 13 bankruptcy.

This post is for informational purposes only and is not to be construed as legal advice.


St. Louis Today, "McClellan: Mom determined to hold on to house" March 18, 2012