Considering Chapter 13 Bankruptcy?
Our Lewisville Bankruptcy Attorney Explains Repayment Plans and Best Options for Discharging Debt
Many people think of bankruptcy as an all or nothing deal: you either keep all of your things by keeping your debt, or get rid of your debt by getting rid of your things. In reality, there are several different kinds of bankruptcy designed to help people in a variety of financial circumstances. In Chapter 13 bankruptcy, for example, you can keep your house and your possessions by following a repayment plan meant to help you manage your debt until it is discharged.
A Lewisville bankruptcy attorney at our law firm can answer any questions you might have about bankruptcy and explain the intricacies of Texas bankruptcy law. Some of the questions we frequently receive include:
- Will a Chapter 13 bankruptcy stop my foreclosure?
- Am I going to be sued by a creditor?
- How long does the process take?
- Do I have to go to court?
We can answer these and any other bankruptcy questions you may have. We have helped many clients across North Texas, including Frisco, Grand Prairie and Addison, and we are happy to accept new cases from the surrounding areas. Call us at (972) 315-6222 to arrange a free initial consultation with an experienced and caring attorney. Rest assured that a fresh financial start is just phone call away.
Do I Qualify for Chapter 13 Bankruptcy in Texas?
To be eligible to fileChapter 13 bankruptcy, there are several requirements you must meet. These include:
- You must be employed. You must have enough income to be able to fulfill a payment plan under Chapter 13, you, which means you have to be working or have another regular source of money.
- Your debts cannot be too high. You cannot owe too much in secured debts, or you will not be eligible to file Chapter 13. The amount of debt you cannot exceed changes frequently to account for inflation, but currently in Texas the debt limit for Chapter 13 bankruptcy is over $1,000,000 in secured debts and around $400,000 in unsecured. If you owe less than that, you probably qualify to file. Consult an experienced bankruptcy attorney to find out for sure whether Chapter 13, Chapter 7 bankruptcy (which has no debt limits) or other relief solution may better fit your situation.
- You must file your income taxes. You have to have proof of your income and your debts, so you have to have filed your taxes for at least the past four years.
What Happens to Credit Card Debt in Chapter 13 Bankruptcy? Can I Keep My Home?
Your credit card debt is all placed into the repayment plan, and your creditors are forced by law to accept their allotted share of your plan payment. Depending on how much you are able to pay, the credit card company may receive nothing in a Chapter 13 bankruptcy, or they may receive 100 percent.
Chapter 13 also protects you from creditors, foreclosures and repossessions while allowing you to keep your home and personal property. If you are trying to stop a home foreclosure or car repossession, the past due amounts are put into the plan and paid back over time. All creditor collections and calls will stop as soon as you file for Chapter 13, called an “automatic stay” in bankruptcy, and will not continue as long as you stick to your repayment plan.
In a Chapter 13 bankruptcy, you seek a court order that establishes one monthly payment for you based primarily on what you can afford. The idea is to help you pay back as much to your creditors as you are able to over a set period, usually three to five years.
After the Chapter 13 repayment plan ends, the remaining debt you cannot pay will be discharged.
Free Consultation with a Bankruptcy Attorney Near Frisco About Chapter 13
Julian, Shuster & Crowder, P.C. is a Denton County law firm that has helped many people file for Chapter 13 bankruptcy to get their financial lives back in order. Partner and experienced Lewisville bankruptcy lawyer David Shuster focuses his practice primarily on bankruptcy law, so he knows what to do to help you through this difficult period in your life. Contact him or any of our Lewisville bankruptcy lawyers online or call by calling (972) 315-6222 for a free review and advice about what you best debt relief options may be.
We are a debt relief agency. We help people file for debt relief under the U.S. Bankruptcy Code.