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:
- Chapter 13 bankruptcy can allow you to avoid foreclosure if you have fallen
behind on your monthly mortgage payments.
- Filing can help you protect non-exempt property that might not be eligible
for protection under
Chapter 7 bankruptcy.
- 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.
- If you filed Chapter 7 bankruptcy within the last eight years, you may
still be able to get protection through Chapter 13.
- 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.
- Student loan debt typically cannot be discharged by bankruptcy, but a Chapter
13 filing can include it in a repayment plan.
- 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.
Contact us today
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.