Texas Chapter 13 Bankruptcy Attorney
Many people in Austin, San Antonio, Houston, Dallas, Waco, Plano, Garland, and throughout the State of Texas have filed for Chapter 13 Bankruptcy to stop foreclosure, repossession, repay child support arrears, back taxes, and protect their assets and personal property. Every month they are many people in Texas who file for Chapter 13 Bankruptcy. Why? Its because a Chapter 13 Bankruptcy offers people the immediate advantage of debt relief and provides them the ability to repay their past due payments over a period of 3 to 5 years. Chapter 13 Bankruptcy also has a number of advantages over Chapter 7 liquidation under the Bankruptcy Code. The most significant advantage is that Chapter 13 Bankruptcy offers individuals the opportunity to save their homes from foreclosure and their vehicles from repossession if they are behind on payments. Most individuals who file for Chapter 13 are allowed to keep most, if not all of their property as long as they fall within the Federal or Texas Bankruptcy Exemptions, and as long as they have the ability to fund a Chapter 13 Bankruptcy plan.
Since Chapter 13 can stop foreclosure proceedings, the majority of people in Texas file for debt relief under Chapter 13 so they can stop foreclosure, and save their homes. Chapter 13 individual debt adjustment allows individuals to cure delinquent mortgage payments over time on terms that fit their budget. After the filing of the case, they propose a repayment plan to creditors, which must be approved by the Chapter 13 Trustee & confirmed by the Bankruptcy Court. A Chapter 13 Bankruptcy plan lasts from 3 to 5 years depending on the facts of each particular case. Although debtors can repay their past due payment over time, they must still make all ongoing mortgage payments that come due during the course of the Chapter 13 plan on time.
Another advantage of Chapter 13 Bankruptcy is that it allows individuals to reschedule certain secured debts (those other than their mortgage for their primary residence) and extend them over the term of the Chapter 13 repayment plan. By doing this, it may possibly lower their monthly payments or even reduce the amount total owed.
For some debts not dischargeable in a Chapter 7 Bankruptcy, such as student loans, child support, or recent taxes, a Chapter 13 can allow you to spread out those debts over time in payments you may better afford. If you are behind on these types of debts, you can make 1 payment in a plan to the Chapter 13 trustee as opposed to several.
Chapter 13 Bankruptcy has a provision that protects certain third parties who are liable along with the debtor on "consumer debts." This provision can protect co-signers who might have guaranteed the debts of the Chapter 13 filer. As long as the debtor makes the scheduled Chapter 13 plan payments, the co-signer is usually left alone.
Still another benefit to Chapter 13 is an end to creditor harassment. Once the Chapter 13 is filed, the automatic stay is set in place pursuant to section 11 U.S.C. § 362 of the Bankruptcy Code. The automatic stay is an injunction against any collection actions or legal proceedings that may be brought against the debtor. This automatic stay goes to include contact with the debtor in any capacity. Throughout the pendency of the Chapter 13 Bankruptcy case, the debtor has no direct contact with their creditors. Their creditors cannot contact them without their attorney’s permission while under Chapter 13 protection. Criminal proceedings and child support actions are exceptions but for the most part all creditor contact goes away.
A Chapter 13 Bankruptcy is kind of like a debt consolidation loan where an individual makes a single payment to a Chapter 13 Bankruptcy trustee who in turn distributes the payments to creditors as per a plan. The difference between a debt consolidation loan and a Chapter 13 Bankruptcy plan is that there is no loan and the money to repay creditors is funded by the debtor on term the debtor can afford. Put another way, a Chapter 13 Bankruptcy is essentially a court supervised repayment plan that lasts 3 to 5 years, depending on your circumstances. You promise to pay a certain amount each month to the Chapter 13 Trustee, who, then in turn, pays back your creditors. In most cases, debts to secured creditors are repaid 100%, and unsecured creditors often receive pennies on the dollar.
- Advantages of filing Chapter 13 Bankruptcy
- Chapter 13 Bankruptcy can Stop Foreclosure
- Chapter 13 Bankruptcy can Stop Repossession
- Chapter 13 Bankruptcy can Stop Wage Garnishment
- Chapter 13 Bankruptcy can Stop Lawsuits
- Chapter 13 Bankruptcy can significantly reduce certain debts
- Chapter 13 Bankruptcy can lower payments on certain debts
- Chapter 13 Bankruptcy can protect cosigners
- Chapter 13 Bankruptcy may allow you to keep all of your property
- Chapter 13 Bankruptcy can Stop creditor Harassment
- Chapter 13 Bankruptcy can give you the Debt Relief and a fresh financial start
- Chapter 13 Bankruptcy may allow you to repay back taxes over 3 to 5 years
- Chapter 13 Bankruptcy may allow back child support to be repaid over 3 to 5 years
In Summary, Chapter 13 Bankruptcy has many advantages, especially if you are facing foreclosure, repossession, or potential loss of personal property. If you are about to lose your home, your car, or your personal property, and have a consistent income to make future payments over a 3 to 5 year period you should consider your options under Chapter 13 Bankruptcy.
Chapter 13 Bankruptcy has been a debt relief option for many people in Texas, and it may be an option for you. If you live in Houston, Austin, San Antonio, Dallas, Waco, Victoria, or anywhere else in Texas, and are considering filing for bankruptcy debt relief or if you have questions regarding more detailed or specific questions about mandatory pre-filing Credit Counseling contact The Law Offices of R.J.Atkinson for a free bankruptcy evaluation.