Texas Bankruptcy Attorneys
There have been many changes to the structure of Chapter 13 of the Bankruptcy Code and Chapter 7. However, Chapter 13 remains a valuable tool for relieving the immediate pressure of collections or foreclosure, as well as for discharging most or nearly all of your unsecured indebtedness, subject to certain exceptions.
For a confidential and free consultation about our ability to help you realize the full benefit of a Chapter 13 consumer bankruptcy case, contact a San Antonio Chapter 13 lawyer at Rosenbaum Law Offices (now Davis Law Firm).
Chapter 13 Bankruptcy Explained
The main distinguishing feature of Chapter 13 is its debt repayment requirement. Chapter 13 debtors must file a plan for paying off debts according to classification — secured, priority unsecured, or general unsecured, for example — and make monthly payments to a trustee, who then distributes the payments to particular creditors. Payments under a Chapter 13 plan continue for a three to five year period, or until the case is completed, dismissed or converted to Chapter 7. A Chapter 13 debtor can dismiss or in some cases convert the case upon motion.
How Much Do I Have to Pay Back?
How much of your debt you end up paying under the Chapter 13 plan depends on many factors, such as the amount of mortgage arrearages, how much of your debt is nondischargeable, or whether you are willing to give up collateral that secures particular debts. For unsecured debts without priority, such as most credit card debt, Chapter 13 consumer debtors usually pay a small percentage of this debt.
Can I File Chapter 13 if I Am Not Eligible for Chapter 7?
After Congress amended the Bankruptcy Code to require a means test for Chapter 7 relief, many consumer debtors found themselves ineligible for Chapter 7 because their incomes were too high.
Even if you believe that you are ineligible for Chapter 7 protection on the basis of income, our attorneys will examine your situation carefully before determining that Chapter 13 is your only option. We file many Chapter 7 cases for clients who assumed or had been told that they could not file a petition under that chapter.
Work With an Experienced Bankruptcy Lawyer
Our experience with Chapter 13 cases helps you maximize the value of your rights under the Bankruptcy Code. For example, we can structure your plan so that higher priority or interest-bearing claims get paid first, which extends the debt reduction impact of your monthly payments. We can also make arrangements with holders of secured or nondischargeable claims to reduce your liability for such obligations as tax penalties and interest.
We also help small businesses restructure their finances in Chapter 13.
For more information about filing a Chapter 13 bankruptcy case, contact a San Antonio bankruptcy attorney at Rosenbaum Law Offices (now Davis Law Firm).