Filing Chapter 13 Bankruptcy
Houston Bankruptcy Attorney Patrick T. Williams Provides Advice
For people who do not qualify for a Chapter 7 bankruptcy, Chapter 13 bankruptcy may be a good choice. Chapter 13 also may be the best means of preserving assets and saving your home, especially if your home is at risk of a mortgage foreclosure. Only an experienced Houston bankruptcy lawyer can properly advise you of your rights and responsibilities in a Chapter 13 case and help you decide whether filing Chapter 13 is right for you and your family. Contact the Law Office of Patrick T. Williams for a comprehensive, personalized consultation about your financial situation and explore how filing bankruptcy may help you get deserved relief today.
Chapter 13 Bankruptcy Basics
A Chapter 13 bankruptcy is a repayment arrangement that lasts from three to five years, during which you repay some or all of your debts, depending on the circumstances. The plan will call for you to make periodic payments to a Chapter 13 trustee, who distributes the money to your creditors according to the plan. Unlike a Chapter 7 discharge, the Chapter 13 discharge does not quickly discharge your debts. Rather, you pay off some debts completely and pay other debts in part. If you successfully complete the terms of your repayment plan, the bankruptcy court discharges any remaining debt unless the debt is ongoing, like a mortgage.
Eligibility for Chapter 13 Bankruptcy
Income in excess of the Texas median income makes an individual ineligible for a Chapter 7 bankruptcy; to file Chapter 13, you need only prove that you have enough disposable income to fund the plan you propose, and you must commit all your disposable income to the plan. The bankruptcy court will use your means test and your proof of income and reasonable, necessary expenses to determine how much you should pay.
Chapter 13 also has debt limits. You cannot file Chapter 13 if your total unsecured debt exceeds $360,475 and/or if your total secured debts exceed $1,081,400.
Filing for Chapter 13 Bankruptcy
Filing Chapter 13 bankruptcy is similar to filing Chapter 7 bankruptcy in many ways. You must file a petition, schedules and related documents and pay a filing fee. Where the two chapters differ is that in a Chapter 13 case, you must also file a detailed repayment plan that sets forth your monthly payments, the allocation of those payments to creditors and the timeframe for the payments. Creditors have the opportunity to object to your proposed plan, and, ultimately, the bankruptcy court decides whether to approve your plan as submitted. This court approval is called confirmation. Once the bankruptcy court confirms your plan, if you comply with the plan and keep in touch with your attorney, you receive a Chapter 13 discharge.
Chapter 13 bankruptcy is a complex process that is best left to a skilled and seasoned Houston bankruptcy attorney. Patrick T. Williams is committed to providing you with the representation necessary to end creditor harassment, stop foreclosure and prevent creditors from repossessing assets. The Law Office of Patrick T. Williams can help you reorganize your debts in an affordable manner. Contact us today.
