Chapter 13 Bankruptcy
Filing for Chapter 13 Bankruptcy in Texas
Chapter 13 bankruptcy (also known as "the wage earner's plan" or "rehabilitation bankruptcy”) allows you to create a 3 to 5 year repayment plan based on future earnings to pay off all or part of your debts to creditors. Chapter 13 is an idea form or relief for those is also available to those who do not qualify for Chapter 7 bankruptcy, or who need a chance to catch back on mortgage and vehicle payments. Chapter 13 is also ideal for those who need to pay back the IRS.
Chapter 13 allows you to:
- Stop home foreclosure
- Catch back up on your car or mortgage
- Stop a repossession
- Pay back taxes (interest free)
- Stop creditor harassment and collection activity
- Keep valuable non-exempt property, such as jewelry, boat, or 2nd home.
Debt Reorganization Under Chapter 13 Bankruptcy
If you abide by the terms of your repayment agreement, all your remaining dischargeable debt will be released at the end of the plan, which is typically 3-5 years. The amount you have to repay monthly is determined by several factors, including your disposable income. This test is similar to the "means test" in Chapter 7 and determines the total amount of unsecured debt you will have to pay back. I will let you know how much you are required to pay back to your unsecured debts under the law, and set you up for a successful plan.
Why choose us: many law firms never mention the unsecured debt portion that you will be required to pay back through the plan. Rather, they advertise Chapter 13 on the basis of a small monthly payment. Often times, these law firms will step up your plan payment in the future to satisfy the amount that you are required to pay back to unsecured creditors. The problem? You are now unable to make the higher payments and your case is dismissed with no discharge. They do not care as they have already been paid through your plan. We do not do this, it is unethical. We will let you know the total amount you have to pay to your unsecured and set you up for a plan that will be successful.
Protect Your Assets and Stop Foreclosure Under Chapter 13 Bankruptcy
In a Chapter 13 bankruptcy you can stop penalties, stop interest, cram down the cost of vehicles and other collateral securing debts, take time to repay arrearages on secured debt such as mortgages, and perhaps obtain other debt relief. Each year the Chapter 13 will review your income tax return and repayment plan. A successful Chapter 13 can achieve dramatic debt reduction.