We Help Individuals in DFW and North Texas Obtain Debt Relief Using Chapter 13 Bankruptcy
Chapter 13 bankruptcy provides a structured approach to reorganizing and repaying your debts over a period of three to five years. It offers a chance to overcome financial distress while keeping your assets and property. If your financial situation has caused you to consider bankruptcy, do not wait to contact us. Consulting with a Chapter 13 bankruptcy lawyer in Dallas is the first step in understanding whether this financial choice is best for you.
At Warren & Migliaccio, our Dallas bankruptcy attorneys have significant experience and success in helping individuals get on the road to financial recovery. Call us at (888) 551-8820 or contact us online to schedule a consultation. We can answer your questions, review your situation, and help you determine your options for pursuing debt relief.
What Is Chapter 13 Bankruptcy in Texas?
Unlike Chapter 7, which involves liquidating non-exempt property to pay off debts, Chapter 13 bankruptcy is a reorganization bankruptcy. It allows individuals with a steady income to devise a three to five-year plan to repay all or part of their debts. You do not have to sell off your property under Chapter 13.
This approach is particularly beneficial for individuals with a consistent income source whose primary financial burden is secured debts or debts backed by collateral. For example, it may be suitable for someone with significant equity in a home or other property seeking to avoid foreclosure or repossession.
Are you considering bankruptcy? If so, we welcome you to schedule a consultation with a Dallas Chapter 13 bankruptcy lawyer from our firm. We can review your situation and determine whether Chapter 13 bankruptcy may be the right option for you to seek debt relief.
What Are the Benefits of Filing Chapter 13 Bankruptcy in Texas?
Generally, Chapter 13 bankruptcy can you give time to repay your debts and regain control of your finances. Examples of its other advantages include:
- Stops collection activities. Once you file for Chapter 13, an automatic stay goes into effect. An automatic stay stops most collection activities, including wage garnishment, bank garnishment, lawsuits, creditor phone calls and letters, and repossessions.
- Protects your assets. Under Chapter 13, you can keep your valuable non-exempt property instead of having it sold to repay your debts.
- Stops home foreclosure. Chapter 13 bankruptcy can stop home foreclosure, even if you are behind on your payments. It gives you three to five years to catch up on your mortgage default without further interest or penalty.
- Stops repossessions. Chapter 13 bankruptcy allows you to keep your car, even if you are behind on payments. In some cases, you may only have to repay the market value rather than the actual amount you owe.
- Allows you to pay non-dischargeable tax debts. Chapter 13 bankruptcy allows you to pay your non-dischargeable tax debts through the bankruptcy repayment plan. It also stops further interest and penalties from accruing during the plan.
- Offers flexible repayment terms. Through Chapter 13, you may be able to reduce the interest rates on certain loans and extend payment terms on most debts during the three to five-year bankruptcy plan. Your repayment plan is based on your disposable income and types of debt, providing a realistic path to debt relief.
- Discharges unsecured debt. You can include unsecured debt in your repayment plan. Upon completing the repayment plan, most, if not all, remaining unsecured debts, like credit card debt and medical bills, are discharged. Once discharged, you are no longer legally obligated to pay them.
How to Qualify for Texas Chapter 13 Bankruptcy in Texas
Many people believe that if you do not qualify for Chapter 7 through the means test, you will automatically qualify for Chapter 13. However, this is not the case. Qualifying for Chapter 13 bankruptcy in Texas involves meeting specific criteria set by United States federal bankruptcy laws.
Generally, you must meet the following eligibility requirements to file for Chapter 13 bankruptcy:
- Your total combined secured and unsecured debts do not exceed $2,750,000 on the filing date.
- You have a consistent source of income that can cover your monthly living expenses and allow for a reasonable repayment plan.
- You have filed tax returns for the last four years.
- Within 180 days before filing, you have received credit counseling from an approved counseling agency.
- You have not had a bankruptcy petition dismissed within the last 180 days for failure to appear in court, follow court orders, or through voluntary dismissal.
- You have not had debts discharged through Chapter 7 bankruptcy within the last four years or Chapter 13 bankruptcy within the previous two years.
We recommend consulting with an experienced Chapter 13 bankruptcy attorney in Dallas. We are here to guide you through the qualifications for Chapter 13 bankruptcy and determine if it is the right choice for your financial situation.
Our Dallas Chapter 13 Bankruptcy Lawyers Serve Individuals in DFW and North Texas
At Warren & Migliaccio, our team is dedicated to helping individuals and their families get back on track with their finances. We understand that anyone can find themselves in financial distress. When the burden becomes too great, bankruptcy may be the right option for debt relief. Our Dallas Chapter 13 bankruptcy attorneys work with individuals throughout the Dallas-Fort Worth area and North Texas, including in the following counties and cities:
- Collin County: Plano, Frisco, McKinney, Allen, Murphy, and Anna
- Dallas County: Dallas, Irving, Garland, DeSoto, and Farmers Branch
- Denton County: Denton, Lewisville, Little Elm, The Colony, Corinth, and Highland Village
- Rockwall County: Rockwall, Fate, and McLendon-Chisolm
- Tarrant County: Fort Worth, Arlington, North Richland Hills, Euless, Bedford, and Keller
Are you considering Chapter 13 bankruptcy in Texas or seeking advice about your financial situation? If so, do not hesitate to reach out to us.
What Are the Disadvantages of Chapter 13 Bankruptcy?
While Chapter 13 bankruptcy offers a structured path to overcoming debt, it is also important to consider its potential drawbacks. A few of the challenges that come with Chapter 13 include:
- Long-term commitment. Chapter 13 requires a commitment of three to five years to a court-approved repayment plan, unlike Chapter 7, which typically ends within four to six months. Chapter 13 requires financial discipline and can affect long-term financial planning.
- Budget constraints. Under Chapter 13 bankruptcy, your disposable income, or money left after paying for necessities like housing and food, will go toward repaying outstanding debts. It will limit your financial flexibility for the duration of the plan.
- Non-dischargeable debts. You cannot discharge all of your debts through Chapter 13. For example, it will not discharge child support, alimony obligations, most student loans, or certain tax debts.
- Creditors’ rights to secured property. While Chapter 13 can help you catch up and manage your secured debts, it does not discharge the obligation to continue making regular payments on these loans after your case ends. Failure to make ongoing payments can still lead to foreclosure or repossession.
- Credit history. Chapter 13 bankruptcy can stay on your credit history for up to seven years from your filing date, potentially affecting your ability to secure loans, credit cards, or favorable interest rates.
While Chapter 13 bankruptcy does not discharge all of your debts, it can help you obtain a stable financial future. As Dallas bankruptcy lawyers, we are here to help you consider the pros and cons, understand the implications of filing for Chapter 13, and determine whether it is the right option for your financial situation.
- How Long Will Chapter 13 Bankruptcy Stay on My Credit History?
- What Is the Difference Between Chapter 7 and Chapter 13 Bankruptcy in Texas?
How Does Chapter 13 Bankruptcy in Texas Work?
Chapter 13 bankruptcy works as a three to five-year repayment plan based on your budget. Our Chapter 13 bankruptcy lawyers in Dallas can help you file a petition for bankruptcy and propose a payment plan. The repayment plan will outline how you repay your debts.
The purpose of the three to five-year payment plan is to use any money remaining after reasonable, court-approved expenses are deducted from your income to pay for your debts.
Chapter 13 consolidates your debts into one manageable monthly payment. You have no direct contact with creditors. Instead, you pay monthly to the bankruptcy trustee overseeing your case. They will disperse payments to your creditors. Once you fulfill the repayment plan, you do not have to pay any remaining dischargeable debt.
After filing for Chapter 13 bankruptcy, the automatic stay will go into effect. The automatic stay will stop most collection efforts, providing you with relief from creditors.
Then, you can expect to attend a 341 hearing with your Chapter 13 bankruptcy lawyer within 30 to 50 days. During the meeting, you and your attorney will meet with the bankruptcy trustee overseeing your case to review your documents. Any creditors who choose to come may also review your documents and ask questions.
After your 341 meeting, your attorney will work toward getting your repayment plan confirmed or approved by the court. However, your first payment is due within 30 days of filing for bankruptcy, even if your plan has not been confirmed yet.
Related: Credit Restoration After Bankruptcy
Schedule a Consultation With Our Dallas Chapter 13 Bankruptcy Attorney
At Warren & Migliaccio, we strive to help individuals and their families obtain financial stability and a fresh start. If you are overwhelmed with debt, do not wait to contact an attorney from our firm. Depending on your unique situation, Chapter 13 bankruptcy may be a viable choice for debt relief.
During a consultation, we are happy to review your situation and help you understand your potential legal options for seeking debt relief. Call our Chapter 13 bankruptcy lawyer in Dallas at (888)-584-9614. You can also submit our online contact form, and we will contact you soon.