Texas Bankruptcy Chapter 13
Texas chapter 13, refers to debt consolidation with partial loan repayment. This involves a consolidation of debts reduced into a single payment made by you to your trustee for bankruptcy. This plan has a monthly payment for the course generally lasting 3-5 years. After completion, your debts that are dischargeable which remain unpaid are completely discharged.
Eliminate Negative Home Equity
For those with negative positions in property, (negative equity, making them upside down or under water in property by owing more than it is worth) such as with a car, a home, other property or other property that is secured, chapter 13 is an option in Texas which can be your best for dealing with financial problems. Chapter 13 in Texas offers significant debt reduction tools for dealing with your property which is under water.
Requirements to file chapter 13 in Fort Worth Bankruptcy or Dallas
For you to qualify to file chapter 13, you are required to have steady income as well as to agree for a payment of a part of the income which your creditors are owed by you. Bankruptcy courts are required to approve this repayment plan. Should you hire us an dwe accept you as a client, our attorneys will work with you on this plan to make sure it qualifies and to give you the best chances for being accepted by the courts and your chapter 13 bankruptcy trustee. This part of bankruptcy can be useful in handling mortgage payments that are behind, (now as mortgage arrearages) which are the amount of money which you are negative and which you are behind on the property. These debts are and not dischargeable, as are also taxes as well as student loans which are exempt from discharge.
Stop Foreclosure, Creditors, and Bank Account Garnishment
Filing bankruptcy shuts down the foreclosure process immediately, stops wage garnishment, stops creditor harassment and provides debt relief that you need. By Rick Weaver.
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What Will Chapter 13 Bankruptcy Do For Me?
Chapter 13 refers to the type of bankruptcy proceeding specifically under federal laws whereby someone can turn debts into a repayment plan. A plan to repay the debts is turned over to a bankruptcy trustee and bankruptcy court. The debtor will make monthly installment payments which are turned over to the Chapter 13 bankruptcy trustee who pays out creditors according to their priority in the plan. The Bankruptcy Trustee receives these bankruptcy installments and then pays creditors as required by law and as prescribed according to the bankruptcy plan. While in effect, the bankruptcy court places an Automatic Stay into effect which stops collection efforts to be made by creditors.
Chapter 13 often provides people an opportunity for those who have suffered from short-term setbacks with the ability to regain financial control. Some of the setbacks could include job loss, sickness, or significant unexpected expenses like a broken down car and other financial mishaps. Chapter 13 bankruptcy combines the authority and efficacy of the Automatic Stay alongside an income which provides the ability to get caught up with overdue payments through the course of a three to five year period after starting the bankruptcy process. This along with keeping current on subsequent payments provides the protection. This allows people to keep assets like a car, a house, business assets and more.
HOW LONG DOES CHAPTER 13 BANKRUPTCY TAKE
While a Chapter 7 bankruptcy case with no major assets which must be liquidated and distributed to creditors can proceed quite quickly, even as short as just a couple or few short months. On the other hand, chapter 13 bankruptcy involves a repayment plan ranging generally from 3 years to 5 years for completion.