Chapter 13 Attorney Houston: Bankruptcy Guide

Chapter 7 is not always an option or the best solution for all people. In these cases, a knowledgeable Texas bankruptcy lawyer may recommend Chapter 13 bankruptcy as a way to reach an affordable repayment plan that provides financial relief for a financially distressed individual. A lawyer can discuss your specific situation and recommend the best course of action for moving forward. If you would like to explore your options, do not hesitate to contact our team today. We provide a free consultation to evaluate your case, explain how we can help.

Basics of a Chapter 13 Bankruptcy

Chapter 13 bankruptcy is a solution for debtors who have a regular source of income but are suffering from heavy debt. Unlike a Chapter 7 bankruptcy, the debtor enters into a bankruptcy filing process that includes a debt repayment plan to pay off the debt they have accumulated, but they get to keep their property. The repayment process lasts between three to five years, which provides a window to catch up on past-due payments and get your debt in order. A bankruptcy trustee is appointed to oversee the repayment plan and takes a fee for their services. At the end of the repayment plan, the remaining unsecured debt is discharged.

The Chapter 13 Bankruptcy Process

Chapter 13 bankruptcy is a more involved process than Chapter 7 bankruptcy. You will need to submit a repayment plan to pay off a large chunk of debt within the three- to five-year term. Hiring a Houston bankruptcy attorney can help you navigate the complexities of the bankruptcy process. Individuals filing on their own may encounter significant pitfalls such as incorrect paperwork and missed deadlines. A qualified attorney can provide valuable insights based on individual circumstances, ensuring that your finances are carefully reviewed and various petitions and schedules are prepared for the court that detail your debts, assets, and income. Your repayment plan allows you to pay off past due debts and pay current expenses.

The general process for a Chapter 13 bankruptcy works like this:

Your bankruptcy lawyer requests various financial documents.
Your bankruptcy lawyer files bankruptcy paperwork with the court.
The court enters an injunction that prohibits debt collectors and your creditors from attempting to collect on debt that is part of the bankruptcy case.
Your lawyer prepares a repayment plan that meets specific legal requirements that accounts for reasonable monthly expenses and remaining income after the payment of these expenses. The plan must provide for priority claims that must be paid in full, such as back child support and taxes, and unsecured debt, which may only be partially paid during the repayment plan.
Your creditors have the chance to review the plan and make objections.
The bankruptcy judge confirms or denies the repayment plan. A hearing may be scheduled if there are objections to the repayment plan.
You begin making your bankruptcy payments within 30 days of the date you file your bankruptcy case. You may need to submit a wage order or ACH authorization to ensure payments are made.
You make payments as part of the plan and keep your property.
After the repayment term, any dischargeable debts are discharged. You are no longer legally responsible for paying off these debts.

As you can see, the Chapter 13 bankruptcy process is complex. An experienced bankruptcy lawyer can help ensure that your rights are protected and that your repayment plan is affordable.

Find Out If You Qualify For Bankruptcy With a Free Bankruptcy Evaluation

Benefits of Chapter 13 Bankruptcy

There are many advantages that Chapter 13 bankruptcy offers, including:

You can keep your property.
An automatic stay is entered in your case to prevent creditor harassment or further collection activity.
You get time to reorganize your finances and reduce your monthly payments to creditors.
You can discharge remaining unsecured debt after the repayment plan period.
Chapter 13 bankruptcy can stop foreclosure on your home and repossession on your vehicle.
More debts are dischargeable in a Chapter 13 bankruptcy.
You get more time to pay debts that cannot be discharged, such as child support arrears or taxes.
Chapter 13 bankruptcy can help you catch up on missed mortgage payments, preventing foreclosure.
Achieving financial freedom is a potential benefit, as Chapter 13 bankruptcy provides a structured path to debt relief and personal empowerment.

An experienced Texas bankruptcy attorney can explain the financial relief and other benefits you can receive by filing Chapter 13 when you contact us for a confidential consultation.

How To Qualify For Chapter 13 Bankruptcy

To qualify for Chapter 13 bankruptcy, you must meet the following eligibility criteria:

You must have less than $465,275 in unsecured debt and less than $1,395,875 in secured debt.
You must have a regular source of income from which to make payments.
You must enter into a repayment plan in good faith that pays unsecured creditors at least as much as they would have received under Chapter 7.
You must pay all of your disposable income into the repayment plan for at least three years.

Our Texas bankruptcy lawyers can evaluate your situation and determine if you qualify for Chapter 13 bankruptcy. Consulting with a law firm is crucial in guiding you through the Chapter 13 bankruptcy process. A bankruptcy attorney can help you understand your options and the associated costs, making the law firm a valuable resource for individuals seeking financial relief.

Contact a Knowledgeable Texas Chapter 13 Bankruptcy Lawyer for Help

Filing bankruptcy can be a confusing process. Our team of qualified Texas Chapter 13 bankruptcy lawyers are here to help guide you through this process and help you make the best decisions for your situation. Unlike liquidation bankruptcy (Chapter 7), which may require you to liquidate possessions to settle debts, Chapter 13 allows for debt restructuring without the immediate loss of assets and can provide a structured repayment plan. Contact us today to begin your path to financial relief.