Proudly serving Houston, Texas, and the surrounding areas including but not limited to Harris County, Fort Bend County, Galveston County, Brazoria County, Montgomery County, Waller County, Chambers County, and more…
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 a 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 a Chapter 13 Bankruptcy?
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 a 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.