Dallas Chapter 13 Attorneys

Is Chapter 13 Bankruptcy Right for Me?

While Chapter 7 bankruptcy liquidates unsecured debt, Chapter 13 bankruptcy, also known as "reorganization bankruptcy," gives the filer the chance to restructure their debt into manageable payments over a longer period of time – typically three to five years. In order to qualify for Chapter 13 bankruptcy, you must have some form of income, and your wages must be sufficient to fund your repayment plan.

Filing for Chapter 13 bankruptcy can have many benefits, including:

  • You will repay your debts over three to five years
  • You may be able to remove a second or third mortgage
  • You may be able to save your home from foreclosure
  • You can put an immediate end to creditor harassment
  • You can move forward with a fresh financial start

How to Stop Foreclosure Through Chapter 13

Chapter 13 bankruptcy allows you to reorganize your debts so that you can avoid repossession and/or foreclosure. If you are receiving foreclosure notices or you have fallen behind on your mortgage, Chapter 13 could be a powerful tool to help you regain control of your finances. The moment you file for bankruptcy, an automatic stay is put into place, which halts foreclosure proceedings and other debt collection methods.

The Chapter 13 Bankruptcy Timeline

  • Step #1: You must take a credit counseling course within 180 days of filing
  • Step #2: Once you file under Chapter 13, the automatic stay will go into effect
  • Step #3: You will submit your payment plan to the bankruptcy court for approval
  • Step #4: About 20-40 days after you file, the creditors meeting will take place
  • Step #5: A confirmation hearing will be held 20-40 days after the creditors meeting
  • Step #6: You must complete secondary counseling after the creditors meeting
  • Step #7: You will start to repay your debts each month for three to five years
  • Step #8: At the end of your bankruptcy, remaining debts will be discharged

Am I Eligible for Chapter 13 Bankruptcy?

Unlike Chapter 7 bankruptcy, you are not required to pass a “means test” in order to file for Chapter 13 bankruptcy; however, you should know that eligibility is still limited. In order to qualify for Chapter 13, you must be able to show the bankruptcy court that you have sufficient income to meet your repayment obligations—that is, after you subtract any required payments on secured loans, like mortgage payments or car payments.

You can use income from any of the following to fund your plan:

  • Wages / salary from your job
  • Income from self-employment
  • Social Security or disability benefits
  • Workers’ compensation benefits
  • Unemployment benefits or welfare
  • Child support or spousal support
  • Proceeds from property sales

Free Consult with a Dallas Bankruptcy Attorney

Get in touch with our Dallas Chapter 13 lawyer from Allmand Law Firm, PLLC to discuss all of your options, including bankruptcy. Our founder, Attorney Reed Allmand, is certified in Consumer Bankruptcy by the Texas Board of Legal Specialization. Over the years, our firm has helped tens of thousands of individuals and families eliminate their debt and reset their financial health. Now, we are ready to help you.

Call our office at (214) 238-9608 to schedule an appointment. Your complimentary financial empowerment session is just a phone call away!