Chapter 13 Bankruptcy Lawyer Arlington TX
If you have incurred a substantial amount of unsecured debt related to credit cards and medical bills, speaking to a Chapter 13 bankruptcy lawyer Arlington, TX relies on might be a perfect solution for you. Chapter 13 bankruptcy is only available to you so long as you are petitioning as an individual, or operate a self-employed, unincorporated business. Currently, in order to qualify, your unsecured debts must not exceed a $394,725 and your secured debts, such as home mortgages and automobile loans, must be less than $1,184,200. These are the current limits as of the date of this publication. Please note that the federal government changes these amounts every three years. The next adjustment will be made in 2020.
When filing for Chapter 13 bankruptcy, you must also have a source of income. It also requires you to pay back all or a portion of your debts over a three to five-year period. You might want to file Chapter 13 in order to keep your property. If you file for Chapter 7 bankruptcy, you usually have to surrender some property in order to cancel your debts. Chapter 13 is also a preferred method because it imposes a debt management plan on creditors, which they have no choice but to accept. This effectively stops the interest from accumulating, as well as any collection letters and phone calls.
If you’re in need of a Chapter 13 bankruptcy lawyer Arlington, TX trusts, contact Brandy Austin Law Firm, PLLC. In a Chapter 13 bankruptcy, a debtor proposes a repayment plan to creditors. The repayment plan is typically between 36 and 60 months, depending on the debtor’s income and the amount of debt. The payment is made monthly to the Chapter 13 Trustee, and can be automatically deducted from your paycheck or bank account. You can file Chapter 13 bankruptcy to prevent many of the following: a home foreclosure, missed mortgage or car payments, back taxes, stop interest from accruing on a tax debt, keep valuable property classified as non-exempt, and more. All your remaining dischargeable debt will be discharged at the end of the plan if you follow the terms of your repayment agreement. A Chapter 13 bankruptcy lawyer Arlington, Texas relies on can walk you through the requirements.
Chapter 13 Bankruptcy, Your Debts and Their Priority
Chapter 13 is commonly referred to as reorganization bankruptcy. It is defined as such because when you file for Chapter 13, you are essentially proposing a repayment plan to repay your creditors over the course of three to five years. Depending on the priority of your debt, some of your debts will be partially paid, paid in full, or even some will not be paid at all.
The Bankruptcy Code divides your debt into three classes: general unsecured debt, priority unsecured debt, and secured debt. The definitions of these debts are as follows:
- Secured debt includes automobile loans and mortgages.
- Priority unsecured debts can and do include income tax debts and child support payments.
- General unsecured debts, such as medical bills and credit cards, are the lowest in priority, and are commonly subject to partial payment and in some cases, full discharge.
Finally, Congress created exceptions to the Bankruptcy Code that prevent certain debts from being discharged. A bankruptcy attorney can explain to you what debts you have that may fall into this category.
Chapter 13 Bankruptcy Frequently Asked Questions
Chapter 13 bankruptcy is an option that will help you restructure your debts and develop a repayment plan — creating a financial situation for you that seems less dramatic and easily attainable.
Here are some frequently asked questions about filing for this specific type of bankruptcy.
What does filing for Chapter 13 bankruptcy entail?
Known as the repayment option, Chapter 13 bankruptcy is an option for those who would like federal protection from their creditors and debtors. Under Chapter 13, you will keep all of your debts and work with your creditors to create a situation that works for everyone. Additionally, you are able to keep your assets, as you will be using your income as financial leverage to pay back your creditors.
How long does it take for me to repay my loans?
This all depends on your monthly income and the amount of debt you owe. As a general rule, if your median monthly income exceeds the median monthly income for a household of your size in your state, then the repayment must last at least five years. If your median monthly income is less than the state average, your repayment plan must be for three years.
Will Chapter 13 discharge any of my loans?
Unfortunately, no. Under the rules of Chapter 13, you must pay back all debts. This includes student loans, property loans, tax debts, any child support or alimony, and even bankruptcy fees to the federal government.
Will I automatically go into foreclosure when filing for bankruptcy?
No — in fact, filing for Chapter 13 can actually save your home if you are trying to avoid foreclosure. As soon as you file for bankruptcy, an automatic stay will be triggered, meaning the mortgage lender must accept these conditions and you cannot be forced out of your home. Through this option, you are able to pay back your late mortgage payments during your repayment plan, but keep in mind that this is on top of your current monthly payment.
Am I limited in the method of repayment?
Some people are a bit cautious about filing for bankruptcy because their only income comes from retirement, social security, or inheritances. The method of payment doesn’t matter when paying back debt, as long as you can prove to both the court and your creditors you have a trusted source of income that will go towards your repayment obligations.
What happens if I miss a payment?
If you miss a bankruptcy payment, the creditors have the right to file for a dismissal of the bankruptcy proceedings. This is because the idea behind filing for bankruptcy means that you are legally required to stay up-to-date with payments and the creditors get paid back on time.
You don’t have to face filing for bankruptcy alone. Our Arlington, TX chapter 13 bankruptcy lawyer can help to navigate the complex legal process that is Chapter 13 bankruptcy, so do not hesitate to contact us to schedule a consultation today.
How much will my monthly payments be?
The amount to be repaid depends on, and is determined by, several factors established in the bankruptcy code, including your disposable income. You are required, under the repayment plan, to pay any secured and priority unsecured debts. Any disposable income after these payments will usually go to general unsecured debts, such as your credit card or medical bills. You are not required to pay those bills in full, but you must show that you are attempting to put any remaining income towards repayment of those debts.
As a guide, consider that the total amount paid to creditors under a Chapter 13 plan must provide certain creditors at least as much as they would receive if you filed a Texas Chapter 7 bankruptcy. To file Chapter 13 bankruptcy, you must have a recurring and regular source of income and your payment plan must be enough to pay for at least the amount you are behind on your home or vehicle.
As a Chapter 13 bankruptcy lawyer Arlington, TX respects, we may be able to lower your payments on things like your vehicle by paying for them in the Chapter 13 plan. In the Chapter 13 plan, you have the ability lower your payment on the vehicle by only paying the value of the vehicle, and by possibly lowering the interest rate. In some Courts, the judge might require you to make your home mortgage payments through the plan if you are currently behind on your payments. This means that you will have fewer payments to keep up with, and you will be able to keep current on your home going forward.
As a seasoned Chapter 13 bankruptcy lawyer will tell you, the most important thing about a Chapter 13 case is that if you can make the payments, which the bankruptcy law requires to be made to your creditors, you can keep valuable property, like your home and car, which might otherwise be lost.
Will chapter 13 bankruptcy help me?
If you are facing a financial crisis that was caused by a temporary loss of income, health problems, or any of the other many reasons why someone might fall behind on their payments, you do have options. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. If you are facing foreclosure or repossession, please contact us so that we can help you get through these financial troubles.
Is bankruptcy the right choice?
If you are enduring very severe and complicated financial hardships, you may be wondering if filing for bankruptcy is the right choice for you. A Texas Chapter 13 bankruptcy lawyer from Brandy Austin Law Firm, PLLC can go over your financial status with you to help you determine whether this could be a great resource for you. Many people view bankruptcy as a way to eliminate all of their debt. However, filing for bankruptcy does not actually guarantee that all of your debts will be discharged. This is an important key element that a person should know about before filing.
What it Means for a Debt To Be Discharged
When a debt is discharged, it means your responsibility to repay the debt is cancelled. Additionally, the creditor is not able to contact you regarding payments. They are not permitted to reach out to you through any means, whether it be a phone call, email, or letter in the mail. One drawback to think about is that your cosigner could still be affected. You might not have to make payments for this debt, but your cosigner may still have to. Consider letting your cosigner know if you decide to file.
Preventing Repossessions & Foreclosures
Those who file for Chapter 7 or Chapter 13 bankruptcy must take certain actions in order to help prevent a repossession or foreclosure from happening. For Chapter 7, the person must declare whether they plan to return the property, sign into a Reaffirmation Agreement with the creditor, or buy the property from the creditor. If no action is taken, the creditor may be able to take the property away.
When it comes to Chapter 13, in most cases a person will be able to maintain their property even if they had given it as loan collateral. You may be able to modify your loan responsibilities through reducing interest rates, and lengthening the time between payment dates. If you submit amounts as listed in your payment plan, your lenders cannot repossess or foreclose your property.
Long-Term Effects of Bankruptcy
If you file for bankruptcy in Arlington, TX, it will appear on your credit report. A bankruptcy can stay of your report for ten years under Chapter 7, and for seven years under Chapter 13. While having a bankruptcy on your report does not mean you will never get approved for credit or a loan again, it is a main factor when companies make decisions about denials. It can be more challenging to get a loan at a reasonable interest rate.
Contact an Arlington, Texas Chapter 13 Bankruptcy Lawyer from Brandy Austin Law Firm, PLLC
After reading the information above, you might be hesitant to file bankruptcy because of its complex nature. However, if you are seriously considering bankruptcy, you should contact a bankruptcy attorney from Brandy Austin Law Firm, PLLC who will effectively evaluate your situation and provide you with the best course of action to get the debt relief you need. Many people choose to consult with a Chapter 13 bankruptcy lawyer Arlington, TX families trust from Brandy Austin Law Firm, PLLC before submitting their application for bankruptcy. It can be beneficial to get an opinion from a legal professional about whether this option is in your best interest.
There are many factors to consider when making your final decision. We can offer strategy, compassion and knowledge when planning for your financial future. Contact an Arlington, TX Chapter 13 bankruptcy lawyer today!
If you have incurred a substantial amount of unsecured debt related to credit cards and medical bills, speaking to a Chapter 13 bankruptcy lawyer Arlington, TX relies on might be a perfect solution for you. Chapter 13 bankruptcy is only available to you so long as you are petitioning as an individual, or operate a self-employed, unincorporated business. Currently, in order to qualify, your unsecured debts must not exceed a $394,725 and your secured debts, such as home mortgages and automobile loans, must be less than $1,184,200. These are the current limits as of the date of this publication. Please note that the federal government changes these amounts every three years. The next adjustment will be made in 2020.
When filing for Chapter 13 bankruptcy, you must also have a source of income. It also requires you to pay back all or a portion of your debts over a three to five-year period. You might want to file Chapter 13 in order to keep your property. If you file for Chapter 7 bankruptcy, you usually have to surrender some property in order to cancel your debts. Chapter 13 is also a preferred method because it imposes a debt management plan on creditors, which they have no choice but to accept. This effectively stops the interest from accumulating, as well as any collection letters and phone calls.
If you’re in need of a Chapter 13 bankruptcy lawyer Arlington, TX trusts, contact Brandy Austin Law Firm, PLLC. In a Chapter 13 bankruptcy, a debtor proposes a repayment plan to creditors. The repayment plan is typically between 36 and 60 months, depending on the debtor’s income and the amount of debt. The payment is made monthly to the Chapter 13 Trustee, and can be automatically deducted from your paycheck or bank account. You can file Chapter 13 bankruptcy to prevent many of the following: a home foreclosure, missed mortgage or car payments, back taxes, stop interest from accruing on a tax debt, keep valuable property classified as non-exempt, and more. All your remaining dischargeable debt will be discharged at the end of the plan if you follow the terms of your repayment agreement. A Chapter 13 bankruptcy lawyer Arlington, Texas relies on can walk you through the requirements.
Chapter 13 Bankruptcy, Your Debts and Their Priority
Chapter 13 is commonly referred to as reorganization bankruptcy. It is defined as such because when you file for Chapter 13, you are essentially proposing a repayment plan to repay your creditors over the course of three to five years. Depending on the priority of your debt, some of your debts will be partially paid, paid in full, or even some will not be paid at all.
The Bankruptcy Code divides your debt into three classes: general unsecured debt, priority unsecured debt, and secured debt. The definitions of these debts are as follows:
- Secured debt includes automobile loans and mortgages.
- Priority unsecured debts can and do include income tax debts and child support payments.
- General unsecured debts, such as medical bills and credit cards, are the lowest in priority, and are commonly subject to partial payment and in some cases, full discharge.
Finally, Congress created exceptions to the Bankruptcy Code that prevent certain debts from being discharged. A bankruptcy attorney can explain to you what debts you have that may fall into this category.
As a Chapter 13 bankruptcy lawyer Arlington, TX respects, we may be able to lower your payments on things like your vehicle by paying for them in the Chapter 13 plan. In the Chapter 13 plan, you have the ability lower your payment on the vehicle by only paying the value of the vehicle, and by possibly lowering the interest rate. In some Courts, the judge might require you to make your home mortgage payments through the plan if you are currently behind on your payments. This means that you will have fewer payments to keep up with, and you will be able to keep current on your home going forward.
Many people in Texas and across the country are struggling financially, finding it difficult to make ends meet. Between companies closing their doors because of the pandemic, student debt, credit card debt, and high mortgages, it is easy to see how people can quickly get behind on their bills each month. If you find yourself in this position, a chapter 13 bankruptcy lawyer in Arlington TX may be able to help you gain a financial fresh start.
Should You File?
Dealing with the stress and strain of overwhelming debt can take its toll, both emotionally and even physically. The worry about the future, whether or no utilities will be disconnected or even if your home will be foreclosed on can leave you feeling hopeless. The good news is that bankruptcy relief is available. In most cases, the hardest part about bankruptcy is making the decision to proceed. This is often because some people have a negative association with bankruptcy and almost think of it as failing or they think that there must be some other solution, even though they find themselves getting further and further into debt.
Once a person makes the decision to file, they often feel a tremendous sense of relief and can begin to start planning for the future again.
How Do I Know if Bankruptcy Is the Right Choice?
While many of us struggle with financial issues periodically, there are certain signs that indicate that bankruptcy is the best option to get beyond those financial struggles. An Arlington TX chapter 13 bankruptcy lawyer knows that the following signs are a strong indicator that it may be time to file that petition:
You have used up all of our savings, retirement accounts, etc. to pay your bills.
- You are using credit cards to pay your bills each month because you have no other way to pay them.
- You are barely able to make the minimum required payment on your debts (if at all).
- You have asked or accepted financial loans and gifts from family and friends.
- You are behind on your mortgage payments and are in or being threatened with foreclosure.
- You are facing repossession of your vehicle(s).
- Your wages are being garnished or you have been threatened with wage garnishment by a creditor.
- You have a constant barrage of communications from debt collectors.
- You are using cash advance and/or payday loan offers to try to stay above financial water.
- You are not sure and are afraid to look at how much debt you actually owe.
Contact an Arlington, Texas Chapter 13 Bankruptcy Lawyer from Brandy Austin Law Firm, PLLC
After reading the information above, you might be hesitant to file bankruptcy because of its complex nature. However, if you are seriously considering bankruptcy, you should contact a bankruptcy attorney from Brandy Austin Law Firm, PLLC who will effectively evaluate your situation and provide you with the best course of action to get the debt relief you need. Many people choose to consult with a Chapter 13 bankruptcy lawyer Arlington, TX families trust from Brandy Austin Law Firm, PLLC before submitting their application for bankruptcy. It can be beneficial to get an opinion from a legal professional about whether this option is in your best interest.
There are many factors to consider when making your final decision. We can offer strategy, compassion and knowledge when planning for your financial future. Contact an Arlington, TX Chapter 13 bankruptcy lawyer today!
