Filing for Chapter 13 Bankruptcy in Texas

What Is a Chapter 13 Bankruptcy Petition? How Is It Different from Chapter 7?

Filing for Chapter 13 Bankruptcy in TexasAs the pandemic continues, more and more of us find ourselves facing financial challenges. Maybe you lost your job or experienced a temporary layoff that put you behind on your bills. Maybe you lost weeks or months of work because you caught the virus. The bankruptcy laws are there to help in just such a situation.

As a consumer, you generally have two potential paths to get a fresh start in bankruptcy—a Chapter 7 filing and a Chapter 13 filing. In our last blog, we looked at Chapter 7 bankruptcy filings in Texas —how you can qualify and what you can expect. If you are ineligible to discharge your debts in Chapter 7, though, your only option is bankruptcy is a Chapter 13 debtor reorganization.

What Is a Chapter 13 Bankruptcy?

A Chapter 13 bankruptcy filing, also known as “debtor’s reorganization,” is essentially a court-supervised opportunity to negotiate new (and affordable) payment arrangements with your creditors. When you file for Chapter 13 protection, you must provide an accounting of all your debts and assets to the court. You must also submit a plan for the repayment of your debts, typically over a 3-to-5-year period. The plan must be approved by your creditors and by the court before it can be implemented.

As with a Chapter 7, when you file your petition for Chapter 13 reorganization, you will immediately be protected by the automatic stay in bankruptcy, which prevents your creditors from calling you, writing you or attempting to collect a debt from you through any means other than the bankruptcy proceedings. The automatic stay will remain in effect throughout the term of your repayment, provided you comply with the terms of your plan.

An experienced bankruptcy attorney can often help you get the most out of your Chapter 13 filing, often eliminating past late fees and penalties. It’s always in your best interests to hire experienced legal counsel to handle any bankruptcy petition.

Contact an Experienced Rockwall, TX Bankruptcy Attorney

At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. To arrange an appointment, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Kaufman County, Rockwall County, Collin County, Dallas County, Hunt County and the surrounding counties.

Call Rockwall bankruptcy lawyer Carrie Weir at 972-772-3083 or fill out the contact from below for a free, confidential consultation to discuss your options.

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