Chapter 13 Bankruptcy in Houston, Texas: How Case Law Legal Can Help You Regain Financial Stability
If you are struggling with overwhelming debt but have a steady income, Chapter 13 bankruptcy may be the right solution for you. Case Law Legal specializes in Chapter 13 bankruptcy in Houston, Texas, helping individuals reorganize their debts into manageable repayment plans while protecting their assets. Our experienced Houston bankruptcy attorneys guide you through the legal process, ensuring that you receive the financial relief and protection you need.
Understanding Chapter 13 Bankruptcy: A Path to Debt Relief
Chapter 13 bankruptcy, also known as a wage earner’s plan, allows individuals with regular income to create a structured repayment plan. Unlike Chapter 7 bankruptcy, which involves liquidating assets to pay off creditors, Chapter 13 focuses on reorganizing debt into affordable payments over three to five years.
Who Qualifies for Chapter 13 Bankruptcy?
You may be eligible for Chapter 13 bankruptcy if:
- You have a regular income and can commit to a repayment plan.
- Your secured and unsecured debts fall within the limits set by bankruptcy law.
- You are behind on mortgage payments and want to avoid foreclosure.
- You need to restructure car loans, tax debts, or unpaid medical bills.
- You do not qualify for Chapter 7 bankruptcy due to income restrictions.
Benefits of Filing for Chapter 13 Bankruptcy
Filing for Chapter 13 bankruptcy offers several advantages, including:
- Stopping Foreclosure: Chapter 13 allows you to catch up on past-due mortgage payments and keep your home.
- Debt Consolidation: Combines multiple debts into one manageable monthly payment.
- Automatic Stay Protection: Stops creditor harassment, wage garnishments, lawsuits, and repossession actions.
- Asset Protection: Unlike Chapter 7, you do not have to liquidate your assets.
- Debt Discharge: Any remaining unsecured debt may be discharged at the end of the repayment plan.
How Chapter 13 Bankruptcy Works
- Filing a Bankruptcy Petition: Our legal team prepares and submits your petition to the U.S. Bankruptcy Court.
- Automatic Stay Takes Effect: Once filed, creditors must stop all collection actions.
- Creating a Repayment Plan: We work with you to develop a court-approved repayment plan based on your income and expenses.
- Meeting of Creditors (341 Meeting): A trustee and creditors review your financial situation and repayment proposal.
- Court Approval of Plan: Once approved, you make scheduled payments for 3-5 years.
- Debt Discharge: After completing your repayment plan, any remaining eligible debts are discharged.
Types of Debt Covered in Chapter 13 Bankruptcy
- Secured Debts: Mortgage arrears, car loans, and secured personal loans.
- Unsecured Debts: Credit card debt, medical bills, personal loans, and certain tax obligations.
- Priority Debts: Child support, alimony, and specific tax debts must be fully repaid under the plan.
Common Chapter 13 Bankruptcy Questions
Bankruptcy eliminates most unsecured debts, such as credit card balances and medical bills. However, some debts, like student loans, child support, alimony, and most tax obligations, are not dischargeable.
Bankruptcy initially lowers your credit score, but it also provides a chance to rebuild your credit. Many people see improvements within a year or two by responsibly managing new credit lines.
Texas has some of the strongest bankruptcy exemptions, allowing most filers to keep their primary residence and essential assets. Our attorneys will assess your case and determine how to protect your property.
Chapter 7 bankruptcy remains on your credit report for 10 years, while Chapter 13 bankruptcy stays for 7 years. However, the impact on your credit diminishes over time with responsible financial management.
While it is possible to file without legal representation, bankruptcy law is complex. A skilled Houston bankruptcy lawyer ensures that you maximize exemptions, avoid mistakes, and receive the full benefits of the bankruptcy process.
Contact Case Law Legal for a Free Bankruptcy Consultation
If you are struggling with debt and need legal assistance, Case Law Legal is here to help. Our Houston bankruptcy attorneys provide expert legal guidance to help you achieve financial freedom. Contact us today for a free consultation and take the first step toward a fresh financial start.