Texas Chapter 13 Bankruptcy Lawyer
While Chapter 7 bankruptcy is the most common type of consumer bankruptcy case, it is not the right avenue for everyone seeking financial relief. In some cases, filing under Chapter 13 will be the most beneficial course of action.
If you are struggling with debt, consult with our Texas bankruptcy attorney, Abraham Bloomenstiel. We have helped many people pursue the right type of bankruptcy, including Chapter 13, that provides maximum benefits. We can assess your best options.
Who Should File for Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is designed for people facing financial challenges but who have a regular source of income. This form of bankruptcy allows filers to restructure their debts and create a manageable repayment plan over a period of three to five years.
It is particularly suitable for those who:
- Have a steady income: Chapter 13 requires a reliable source of income to fund the proposed repayment plan. This can come from employment, business ownership, or other consistent sources.
- Do not qualify for Chapter 7: If your income exceeds the means test requirements for Chapter 7, Chapter 13 may be the more suitable option.
- Want to protect assets: Chapter 13 allows you to keep your assets, such as homes or cars, while repaying your debts. This is in contrast to Chapter 7, which may involve selling non-exempt assets to satisfy creditors.
- Are facing foreclosure: If you’re at risk of losing your home to foreclosure, Chapter 13 can provide a way to catch up on missed mortgage payments and save your property.
- Have non-dischargeable debts: Certain debts, like tax liabilities or child support, cannot be discharged in Chapter 7 but can be included in a Chapter 13 repayment plan.
Ultimately, the decision to file for Chapter 13 should be made after our bankruptcy lawyer thoroughly assesses your financial situation. We can help you determine the best course of action based on your specific circumstances and goals for debt relief.
The Chapter 13 Bankruptcy Process
The Chapter 13 bankruptcy process involves several necessary and sometimes complicated steps. It starts with a consultation with our bankruptcy attorney. This meeting helps us examine your financial situation, determine eligibility for Chapter 13, and discuss whether it’s the right option for you.
Unlike Chapter 7, Chapter 13 doesn’t rely on a means test for qualification. However, there are debt limits that apply. Individuals with unsecured debts under a certain threshold and secured debts below another limit are eligible for Chapter 13.
We will complete and file the necessary bankruptcy forms, including a detailed repayment plan outlining how you intend to pay off your debts over three to five years. Once your petition is filed, an automatic stay goes into effect. This legally halts all collection activities, including foreclosure proceedings, wage garnishments, and creditor harassment.
Our firm will propose a repayment plan that is realistic, given your financial situation and income. During your confirmation hearing, the bankruptcy court reviews your proposed repayment plan. If it meets the necessary requirements, it will be confirmed.
Over the next three to five years, you’ll make regular payments according to your repayment plan. The bankruptcy trustee will distribute these payments to your creditors. Once you’ve successfully completed your repayment plan, you’ll receive a discharge of your remaining eligible debts. This provides you with a fresh financial start.
Discuss a Possible Case with a Texas Bankruptcy Attorney
Throughout the bankruptcy process, attorney Bloomenstiel will provide guidance, address any concerns, and ensure that you’re meeting the necessary requirements for a successful Chapter 13 bankruptcy. Contact us today for more information and a free consultation or give us a call at 972-881-9700.