Legal Question in Bankruptcy in Texas

Foreclosure won't "force" them into bankruptcy. If they let the house go, they won't be required to file bankruptcy. BUT... if they want to save the house from foreclosure, Chapter 13 bankruptcy is a good way to accomplish that.

An article about using Chapter 13 to stop foreclosure: http://www.214bankruptcy.com/can-bankruptcy-stop-foreclosure/

I am also a little confused about your last statement. Do they want to file bankruptcy or do they want to avoid if at all possible. Eventually, the mortgage company will post the property for foreclosure sale. If there is equity in the house then maybe you or your sister might want to step in and "save" the house. There are different types of bankruptcy. One type would allow them to spread the $8,000 arrearage over 5 years but someone would have to start paying the current mortgage payments as they become due --- maybe a renter could be found. There is another kind of bankruptcy which would help them to walk away completely and have peace of mind that the entire balance of the mortgage was wiped away. Please see www.northtexasdebtfreedom.com for more help. Hang in there!