Plano TX Bankruptcy - Chapter 13
Bankruptcy Attorney John F. Williams, Jr. Can Help You With Chapter 13 Bankruptcy
My Plano Bankruptcy Law Offices have filed many Chapter 13 bankruptcies over the last several years, and I expect the number to increase as more and more people attempt to reorganize their debts. When meeting with clients for the first time, I have to explain the difference between Chapter 13 and Chapter 7 as many clients think they automatically qualify to have their debts wiped clean. The truth is, not everyone qualifies for Chapter 7 debt elimination or necessarily needs to file for Chapter 7.
The alternative is Chapter 13 debt consolidation or reorganization under federal law.
The key difference with filing for Chapter 13 is that you review your entire debt and determine a repayment plan with your bankruptcy attorney. Then we present it to the bankruptcy court to approve or disapprove. The benefit is that it requires your creditors to take less money over a longer period of time. Chapter 13 of the bankruptcy code is backed by the U.S. Federal Court System. This code allows you to consolidate debts into one monthly affordable payment. It forces your creditors to accept repayment under the federal plan of reorganization. Another advantage of Chapter 13 is that your legal fees can be paid through your monthly payment plan.
Chapter 13 is designed for the person or family who has a regular source of income and has the means to repay a portion of the debt over time. The repayment plan usually lasts three to five years. Chapter 13 is sometimes preferable to Chapter 7 because it enables you to keep valuable assets, even some otherwise nonexempt assets.
Again, Chapter 13 is an alternative to those clients who do not qualify for Chapter 7 relief under the CMI-Means Test. Unlike Chapter 7, you do not receive an immediate discharge of your debts until you complete the payments required under the plan. You will be happy to know that you are also protected from lawsuits, garnishments, and other creditor actions while the Chapter 13 plan is in effect.
Unlike Chapter 7, Chapter 13 bankruptcy is an option that gives you more flexibility to keep your property and pay off your debt. Even though you might be able to qualify for Chapter 7 bankruptcy, Chapter 13 may be a better option. This is especially true if you have significant mortgage arrearage or other property that you would like to keep beyond the bankruptcy process.
Call my office today for your FREE CONSULTATION and please bring (2) credit reports, a list of all your expenses and income, and statements from any other debts you have that don’t appear on the reports. This will help me evaluate your income and finances to determine if Chapter 13 is a feasible option.
The Law Offices of John F. Williams, Jr. are your legal advocates throughout the entire bankruptcy process. From the initial filing of your bankruptcy petition to the 341 creditor meeting and discharge, we represent you and protect your interests.
