Texas Chapter 13 Bankruptcy

Chapter 13 bankruptcy lawyer in Texas

If you are considering filing bankruptcy, the odds are that you are exhausted with debt and bill collectors. Our office can help you with your bankruptcy by helping you determine which chapter is best for you to file and then completing the necessary casework involved with the bankruptcy case.

The common types of bankruptcies for individuals are Chapter 7 and Chapter 13. Here we will discuss the general information about a Chapter 13 bankruptcy. If you are interested in a Chapter 7 bankruptcy, please see the blog pertaining to such proceedings.

In a Chapter 13 bankruptcy, a debtor proposes a 3-5 year repayment plan to the creditors offering to pay off all or part of the debts from the debtor’s future income. Although the time frame in a Chapter 13 plan is much longer, the Chapter 13 plan is often more useful to the debtor for many reasons, including that the debtor can use Chapter 13 to prevent a house foreclosure; make up missed car or mortgage payments; pay back taxes; stop interest from accruing on your tax debt (local, Texas state, or federal); and more. As long as the debtor complies to the terms of the repayment agreement also known as “The Plan”, all of the remaining dischargeable debt will be released (or erased) at the end of the plan .

Determining if a Chapter 13 bankruptcy is the best option for you is a little more difficult than deciding on a Chapter 7 Bankruptcy because there are many stipulations in the  federal and local bankruptcy rules to be complied with.

To file Chapter 13 bankruptcy you must have a “regular source of income” and have some disposable (extra) income to apply towards your Chapter 13 payment plan. Chapter 13 bankruptcy is generally used by debtors who want to keep secured assets, such as a home or car.

The main difference in the Chapter 7 and Chapter 13 Bankruptcy is that a Chapter 13 bankruptcy is a reorganization of the debt and payments whereas Chapter 7  is a liquidation in which all or most debts are erased.

If filing a Chapter 13 Bankruptcy sounds like a solution you would like to explore for relief from mounting debt, or if you need more information about Chapter 13 Bankruptcy, do not hesitate to call David Kohm and Associates.

Calls are welcomed 24/7 and consultations are always free.

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