Pearland Chapter 13 Bankruptcy Lawyers With Smart Solutions
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Is a Chapter 13 Bankruptcy right for you? The attorneys at Byman & Associates PLLC, can analyze your financial situation and your unique and specific circumstances to help you determine if Chapter 13 Bankruptcy is right for you. We care about our clients and take the time to understand your situation and get to know you so that we can appropriately and adequately address your specific needs.
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy shares some traits in common with Chapter 7, but is generally for people who make too much money to qualify. A means test dictates which people can file for Chapter 7 and which must look for a different option. One of the most common alternatives is filing for Chapter 13 bankruptcy relief, also known as a wage earner’s plan. Chapter 13 can help you protect vital assets while creating a way out of your debt situation. A properly crafted plan can put you back on solid financial footing.
A Chapter 13 Bankruptcy is sometimes referred to as a “wage earner’s bankruptcy” or a reorganization. Chapter 13 Bankruptcy allows individuals with a consistent source of income to create a plan to pay all, or a portion of, their debts. A Chapter 13 Bankruptcy allows the filer to create a repayment plan for their debt utilizing monthly payments to be paid through a trustee.
A Chapter 13 Plan typically ranges in length from three years to five years, depending on various factors. In a Chapter 13 bankruptcy, some debts are repaid in full while others are paid only a percentage of the total amount owed. The amount a creditor receives through a (Court-approved) Chapter 13 plan depends on various factual and legal circumstances and considerations.
Why File Chapter 13 Bankruptcy?
There are various reasons why a person (or a married couple) might choose to file a Chapter 13 Bankruptcy. For example, a Chapter 13 Bankruptcy is often used to stop a foreclosure sale of your home and to allow you to cure mortgage arrears through the Chapter 13 plan. A Chapter 13 bankruptcy is often used to prevent the repossession of a vehicle and to allow the vehicle payments to be addressed through the Chapter 13 plan. A Chapter 13 bankruptcy could also be used to stop debt collection lawsuits, or creditor harassment including threatening letters and phone calls.
Additionally, a Chapter 13 bankruptcy can be used to create a fixed plan to pay delinquent taxes. A Chapter 13 bankruptcy can also be utilized by high income earners who may not qualify for other available types of bankruptcy relief, or if you own property that would not be protected in a chapter 7 bankruptcy filing.
The intent of a Chapter 13 bankruptcy is to provide relief to the filer and allow them the opportunity to reorganize certain debts through a plan to regain control over their financial situation – and ultimately obtain a fresh start. There are more potential benefits to a Chapter 13 bankruptcy than can be explained here.
The attorneys at Byman & Associates PLLC, provide a free consultation during which they will help you determine if a Chapter 13 bankruptcy is right for you.
Creating A Payment Plan
The goal of Chapter 13 bankruptcy is to reach an agreement on a repayment plan. These plans spread out the repayment of debt over three to five years, at the end of which some of your debt may be discharged. People who file for Chapter 13 bankruptcy may be able to stop foreclosure actions on their homes and cure the delinquent debt they have accumulated.
There are many requirements you must meet to file a successful petition for Chapter 13 bankruptcy. The process can be confusing. The penalty for mistakes is high. The help of an experienced and dedicated bankruptcy lawyer is important to get the most out of the process. Getting approval for a plan that truly gives you an opportunity to get back in control of your financial life takes effort. That effort will be well worth it when you have put an end to harassment from creditors and can see a clear way forward to a better future.
Get Started On Your Chapter 13 Bankruptcy Today
If a Chapter 13 Bankruptcy sounds right for you, reach out to learn more about how we can help. We can discuss your specific situation and determine the next steps.
Call Byman & Associates PLLC today at 281-884-9768. Or send an email through our online form.