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.