Texas Chapter 13 Bankruptcy
If you are considering filing for Chapter 13 Bankruptcy and you are not alone. Tens of thousands of people in Texas have filed for Chapter 13 Bankruptcy to stop foreclosure, stop repossession, or simply to reorganize their debts to repay what they owe on terms they can afford.
Chapter 13 Bankruptcy offers people in Texas a chance to save their home or car, stop collection efforts, restructure their debts, and begin repayment of debts without the threat of losing their most valuable assets. Sometimes known as a debt repayment bankruptcy, or wage earner bankruptcy, a Chapter 13 filing is intended for those people who have a steady or regular income, or the means to eventually pay their debts.
A Chapter 13 Individual Debt Adjustment provides much needed protection and breathing room for those who have fallen behind on their payments and facing serious debt due to a divorce, loss of income, unemployment, business failure, or unexpected medical bills.
Most people in Texas utilize a Chapter 13 Bankruptcy in very specific situations. It is most commonly used save a home from foreclosure or to stop a vehicle from being reposed. If you are behind on your mortgage or car payment, you cannot wipe out those debts in a Chapter 7 Bankruptcy without loosing your home or your car. A Chapter 7 Bankruptcy only eliminates unsecured debt or secured debt if you are willing to give back the secured property. Any payments that are behind on your house or car are considered secured so should you decide to address these debts in a bankruptcy then the only way to catch up is by filing a Chapter 13 Bankruptcy and making the missed payments through a Chapter 13 repayment plan.
It the simplest terms a Chapter 13 Bankruptcy is basically a repayment plan that lasts from 3 to 5 years depending on the circumstances of your situation. From you disposable income which is income after necessary expenses, you promise to pay a certain amount of money each month to the Chapter 13 Trustee, who in turn, pays back your creditors. Depending on your disposable income, your secured creditors typically receive 100 percent repayment, and your unsecured creditors receive pennies on the dollar.
Chapter 13 is also used when a person has property that he or she might lose to a Bankruptcy Trustee if they were to file a Chapter 7. This property is referred to as “nonexempt”. This doesn’t happen to often in Texas since most people who file for Bankruptcy whether it be Chapter 7 or Chapter 13 fall within the limits of the Texas state exemptions. Exemptions are the rules which determine how much property you are allowed to keep. You can choose between the Federal exemptions or the Texas state exemptions depending on which suits your situation the best.
The Bankruptcy Code allows a Chapter 7 trustee to sell any of your assets over the exemption limits and use the excess monies to repay your creditors. If you file for Chapter 13 Bankruptcy you can avoid this possibility since Chapter 13 allows you to keep all of your assets no matter what the exemptions are.
Chapter 13 Bankruptcy can offer many benefits when facing foreclosure, repossession, or loss of property due to a temporary set back. Not only can Chapter 13 Bankruptcy be used to repay your delinquent mortgage payments, car payments, or tax debts, it can even be used to repay child support arrears.
Chapter 13 was designed for those consumers who need relief from their creditors and collection activity to reorganize their debts and devise a plan to repay them. Chapter 13 bankruptcy can afford you the opportunity to repay all or part of your debts over an extended period of time. And, if you have a consistent income to make future payments for the duration of a 3 to 5 year repayment plan you should consider your options under Chapter 13 for debt relief.
Are you in need of Chapter 13 Debt relief? If you live in Houston, San Antonio, Austin, Waco, Dallas, Victoria, or most anywhere in the State of Texas contact the Texas Bankruptcy Lawyers at The Law Offices Of R.J.Atkinson,LLC. An experienced Texas Bankruptcy Lawyer can help you decide if filing Chapter 13 Bankruptcy is the best option for you to get rid of your debt, significantly reduce your debt, reorganize your debt, or just restructure your debt. We would like to help you save your home, save your car, or repay your child support arrears, IRS Taxes, or other Debt in a Chapter 13 Bankruptcy.
Questions About Chapter 13 Bankruptcy, Foreclosure, Repossession, or Child Support?