Arlington Chapter 13 Bankruptcy Attorney

Filing for Chapter 13 Bankruptcy in Arlington, TX

If you have assets that you want to keep, Chapter 13 bankruptcy may be the right option for you. This type of bankruptcy allows you to reorganize your debts and create a repayment plan that fits your budget. While the process can take up to 5 years to complete, it allows you to pay off your debts while keeping your home and other assets. At the Law Office of Mark M. Childress, our Arlington Chapter 13 bankruptcy attorney can help you get started on the process.

Call (817) 497-8148 or contact us online to schedule an initial consultation with our Arlington Chapter 13 bankruptcy lawyer.

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is a legal process available under the United States Bankruptcy Code that allows individuals with regular income to create a plan to repay all or part of their debts over a period of time, usually three to five years. It is often referred to as a "wage earner's plan" or "reorganization" bankruptcy.

Here's an overview of how Chapter 13 bankruptcy typically works in Texas:

1. Filing a Petition: The individual (debtor) files a petition for Chapter 13 bankruptcy with the bankruptcy court in Texas. Along with the petition, the debtor must submit schedules of assets and liabilities, current income and expenditures, contracts, and leases.
2. Creation of a Repayment Plan: The debtor proposes a repayment plan outlining how they will repay creditors over a period of three to five years. The plan must be feasible and must prioritize certain debts, such as priority taxes and secured debts like mortgages or car loans.
3. Meeting of Creditors: After filing the petition, the debtor must attend a meeting of creditors, also known as a 341 meeting, where creditors have the opportunity to ask questions about the debtor's financial affairs and the proposed repayment plan.
4. Confirmation of the Plan: The bankruptcy court must approve the repayment plan. Creditors have the opportunity to object to the plan, but if it meets the requirements of the Bankruptcy Code and is deemed feasible, the court will confirm it.
5. Execution of the Plan: Once the plan is confirmed, the debtor must adhere to its terms, making regular payments to a trustee appointed by the court. The trustee then distributes payments to creditors according to the terms of the plan.
6. Completion of the Plan: Upon completion of all payments under the plan, the debtor may receive a discharge of any remaining eligible debts. However, certain debts such as student loans, most taxes, and domestic support obligations are typically not dischargeable.

Chapter 13 bankruptcy in Texas, like in other states, provides individuals with an opportunity to reorganize their debts and create a manageable repayment plan while retaining their assets. It can be a complex legal process, and individuals considering filing for bankruptcy should consult with a qualified bankruptcy attorney to understand their options and ensure they comply with all legal requirements.

Is Chapter 13 Bankruptcy Right for Me?

Determining whether Chapter 13 bankruptcy is the right option for you involves assessing your financial situation, goals, and the specific benefits Chapter 13 offers.

Here are some factors to consider:

• Regular Income: Chapter 13 bankruptcy is often suitable for individuals with a steady income who can afford to make monthly payments to creditors. If you have a reliable source of income and can commit to a repayment plan, Chapter 13 may be a viable option.
• Ability to Repay: Evaluate whether you can realistically repay your debts over time. Chapter 13 allows you to restructure your debts into a manageable repayment plan, typically spanning three to five years. If you have enough income to cover necessary expenses and make plan payments, Chapter 13 may be appropriate.
• Desire to Keep Assets: Chapter 13 offers the opportunity to keep valuable assets, such as a home or car, while catching up on missed payments through the repayment plan. If you're facing foreclosure or repossession and want to retain these assets, Chapter 13 may be a better option than Chapter 7.
• Debt Types: Consider the types of debts you have. Chapter 13 bankruptcy can address various types of debts, including mortgage arrears, car loans, tax debts, and unsecured debts like credit cards and medical bills. If you have significant priority debts or debts secured by valuable assets, Chapter 13 may provide a structured way to manage them.
• Foreclosure or Repossession: If you're at risk of losing your home to foreclosure or your vehicle to repossession, Chapter 13 can halt these processes and provide a way to catch up on missed payments over time. It offers a chance to save your home or car while resolving your debt issues.
• Long-Term Financial Goals: Consider how Chapter 13 bankruptcy aligns with your long-term financial goals. While it can provide immediate relief and a path to debt resolution, it's essential to understand the long-term implications, such as the impact on your credit score and future borrowing ability.

How We Can Help

Our Arlington Chapter 13 bankruptcy attorney has helped many people get out of debt and regain control of their finances. We understand that the bankruptcy process can be complicated and overwhelming. That is why we are committed to providing personalized legal services and guiding you through every step of the process. We can help you create a repayment plan that fits your budget and represents your best interests. If your financial situation changes, we can help you modify your plan or convert your case to Chapter 7 bankruptcy.

Contact us today at (817) 497-8148 to learn how our firm can help you get a fresh start on your finances.