Kemp Chapter 13 Bankruptcy Attorney Provides Sound Guidance
Texas lawyer shows how to consolidate your debts and protect your property
When you file Chapter 13 bankruptcy, you are allowed to pay off your debts in installments over a period of three to five years under a court-ordered repayment plan. In a process that resembles loan consolidation, you make payments to a trustee who distributes the money to your creditors. This allows you to avoid further direct contact with your creditors. Once you have filed for bankruptcy, your creditors must immediately stop collection efforts, including harassing letters and phone calls. At Jenny C. Parks, PC, I am a Kemp Chapter 13 bankruptcy attorney who provides residents of Texas’s Kaufman and Rockwall counties the comprehensive legal support they need to stop creditor harassment and find a better way forward.
What is Chapter 13 bankruptcy?
By filing for Chapter 13 bankruptcy, you can stop immediate problems such as annoying collection phone calls, service cutoffs, wage garnishment and bank account levies. At the same time, you have the ability to work with creditors to revise repayment terms based on your current financial situation. As an experienced Texas bankruptcy attorney, I can advise on lowering interest rates, reducing penalties and lengthening repayment periods to construct a plan that allows you to stay on schedule while meeting your everyday needs.
Eligibility for Chapter 13 bankruptcy in Texas
Chapter 13 is open to more people than Chapter 7 debt discharge because you do not have to qualify under the means test that evaluates your income and expenses. The only stipulation is that your total debt cannot exceed $2.75 million when you file. Frequently, people whose Chapter 7 bankruptcy petition is rejected because they earn too much will seek a Chapter 13 repayment plan as an alternative.
The Texas Chapter 13 bankruptcy process
If you are earning an income but aren’t making progress on what you owe, I can evaluate your circumstances in an initial consultation and assess whether filing for Chapter 13 bankruptcy is right for you. Should you select this option, my firm offers knowledgeable advice and skillful advocacy through every phase of the proceeding, including:
- Petitioning for Chapter 13 relief and attaching schedules of assets, liabilities, income and expenses
- Appointment of a trustee and an automatic stay halting any collection actions, including phone calls from creditors and denial of utility services
- Preparation and submission of a proposed repayment plan listing priority, secured and unsecured claims
- Meeting of creditors
- Confirmation hearing to formalize the final order establishing a repayment schedule
Your repayment schedule will last from three to five years. As long as you stick to it, there will be no further creditor harassment and any obligations that are remaining once the schedule is complete will be eliminated.
Debts that can be restructured through Chapter 13
In addition to unsecured debts such as credit card balances and medical bills, a Chapter 13 plan restructures your secured debts so that you can pay them over a longer period, often in lower payment amounts. In addition, it may be possible to protect co-signers of certain loans so as to avoid putting business partners and family members at risk of loss from your bankruptcy. My firm will do a complete analysis of your financial situation to develop strategies and identify your best filing options.
Advantages of Chapter 13 bankruptcy
One of the many advantages of filing for Chapter 13 is that you can save your home from foreclosure and your car from repossession. An automatic stay stops lenders and other creditors from contacting you or taking any action as soon as you file your Chapter 13 petition. While Chapter 7 bankruptcy might involve liquidation of assets in order to pay off creditors, a Chapter 13 proceeding gives you the opportunity to establish a reasonable schedule under which you can satisfy your obligations. By meeting the terms of the plan, you can hold on to your home and vehicle. I have the experience and knowledge to develop a strategy that minimizes the disruption to your life.
Contact an accomplished Texas Chapter 13 bankruptcy lawyer for a meeting
Jenny C. Parks, PC handles Chapter 13 proceedings and other types of bankruptcy matters in Kaufman and Rockwall counties as well as other Texas locations. To set up a consultation regarding your situation and options, please call 800-979-3857 or contact me online. My office is in Kemp.