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Unlike most bankruptcy firms in the Dallas / Fort-Worth area, Allmand Law Firm, PLLC spends the time to understand the complete financial picture for every one of our clients. We provide resources, tools and advice to address the unique needs of North Texans.

7 Significant Benefits of Chapter 13 Bankruptcy

Posted By Allmand Law Firm, PLLC || 22-Apr-2016

Chapter 13 bankruptcy is a court-approved repayment plan allows debtors to pay back their debt obligations over a period of three to five years depending on their debt and income levels. The repayment plan allows debtors to make one manageable payment each month to their bankruptcy trustee, so there is no contact with creditors. For those who qualify for this option, filing under Chapter 13 is a great option that offers several advantages.

Chapter 13 bankruptcy offers the following benefits:

  1. Chapter 13 bankruptcy can allow you to avoid foreclosure if you have fallen behind on your monthly mortgage payments.
  2. Filing can help you protect non-exempt property that might not be eligible for protection under Chapter 7 bankruptcy.
  3. You can prevent repossession of your vehicle and catch up on loan payments. Debtors may be able to "cram down" car payments based on the current value of the vehicle and original principal amount of the loan.
  4. If you filed Chapter 7 bankruptcy within the last eight years, you may still be able to get protection through Chapter 13.
  5. If you owe back taxes that are not eligible for discharge but can be paid back though a Chapter 13 repayment plan, the Internal Revenue Service (IRS) will have to stop collection attempts and be forced to accept payment in whatever amount agreed upon the bankruptcy court.
  6. Student loan debt typically cannot be discharged by bankruptcy, but a Chapter 13 filing can include it in a repayment plan.
  7. Unlike Chapter 7 bankruptcy, in which cosigners may also be pursued by creditors if you file, Chapter 13 bankruptcy protects cosigners.

Finding Solutions to Debt in Dallas, TX

Allmand Law Firm, PLLC has handled thousands of bankruptcy cases in Dallas and Fort Worth. Attorney Reed Allmand is Board Certified in Consumer Bankruptcy by the Texas Board of Legal Specialization, so we are familiar with the best ways to help Texas residents free themselves from debt. If you are considering bankruptcy and have questions about which chapter you may be eligible to file under, please do not hesitate to contact us. We would be happy to meet with you during a free financial empowerment session to talk about your options. Rest assured that we will guide you through the entire process, protecting your best interests from start to finish.

Take the first step toward financial freedom today. Please call us at (214) 238-9608, or fill out an online contact form and we will get back to you promptly.

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