Fort Worth Chapter 13 Bankruptcy Lawyer

Debt Relief and a Fresh Start

chapter 13 bankruptcyChapter 13 Bankruptcy: Many hardworking people fall into financial difficulty through no fault of their own. But if you are behind on your bills, receiving calls from creditors or under the threat of foreclosure, repossession or garnishment, take heart. Your debt burden can be lifted from your shoulders and you can get a fresh financial start.

At The Law Offices of Al Malone, we help people get debt relief through Chapter 13 bankruptcy, Chapter 7 bankruptcy and non-bankruptcy solutions. We understand the bankruptcy laws and how to use them to liquidate debts while enabling our clients to keep their property.

For a free initial case evaluation with a lawyer, contact The Law Offices of Al Malone. We are eager to serve you.

The Benefits of Chapter 13 Bankruptcy

An attorney at our firm can review your financial situation and explain the bankruptcy process. If you qualify for Chapter 13, we can take immediate action to stop foreclosure, repossession, garnishment and collection actions. Our firm will then develop a plan designed to achieve the best possible results for you.

In a Chapter 13 bankruptcy, some of your debts may be discharged right away in the trustee hearing. Working with the bankruptcy trustee, our firm will develop a three- to five-year payment plan for your remaining unsecured debts. This will be an affordable plan designed to enable you to cover your payments, living expenses and then some.

At the end of the repayment period, your remaining unsecured debts (credit card debts, medical bills and personal loans) will be discharged. Our Arlington debt consolidation attorneys will work hard to help you achieve maximum debt reduction, while enabling you to keep as much of your property as possible.

If you do not qualify for Chapter 13, you may be able to obtain debt relief via Chapter 7 bankruptcy. We can advise you of your debt reduction and financial reorganization options.

Contact a Dallas & Fort Worth Chapter 13 Bankruptcy Attorney

Call us at 817-953-3112 to schedule your free initial case evaluation.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

Advantages to a Texas Chapter 7 filing:

You receive a complete fresh start. After the bankruptcy is discharged the only debts you owe will be for secured assets on which you choose to sign a “Reaffirmation Agreement.”
You have immediate protection against creditor’s collection efforts and wage garnishment on the date of filing. Wages you earn and property you acquire (except for inheritances) after the bankruptcy filing date are yours, not the creditors or bankruptcy court. There is no minimum amount of debt required. Your case is often over and completely discharged in about 3-6 months.

Disadvantages to a Texas Chapter 7 filing:

You lose your non-exempt property which is sold by the trustee. If you want to keep a secured asset, such as a car or home, and it is not completely covered by your Texas bankruptcy exemptions then Chapter 7 is not an option. If facing foreclosure on your home, the automatic stay created by your Chapter 7 filing only serves as a temporary defense against foreclosure.
Co-signors of a loan can be stuck with your debt unless they also file for bankruptcy protection.
If you filed a prior case and received a discharge of your debts, you can only file a second Chapter 7 bankruptcy case eight years after you filed the first case.

Advantages to a Texas Chapter 13 payment plan:

If you choose and you can afford the payment plan, you can keep all your property, exempt and non-exempt. While debts are not canceled as in a Chapter 7 discharge they can be reduced under a Chapter 13 payment plan.  You have immediate protection against creditor’s collection efforts and wage garnishment. More debts are considered to be dis-chargeable (including debt you incurred on the basis of fraud and credit card charges for luxury items immediately prior to filing).
If the Chapter 13 plan provides for full payment, any co-signers are immune from the creditor’s efforts.
You have protection against foreclosure on your home by your lender as long as you meet the terms of the plan. You have more time to pay debts that can’t be discharged by either chapter (like taxes or back child support). You can file a Chapter 13 at any time. You can file repeatedly. You can separate your creditors by class where different classes of creditors receive different percentages of payment. This enables you to treat debts where there is a co-debtor involved on a different basis than debts incurred on your own.

Disadvantages to a Texas Chapter 13 payment plan:

You create a payment plan where you use your post bankruptcy income. This ties up your cash over the Chapter 13 plan period. Legal fees are higher since a Chapter 13 filing is more complex. Your plan and therefore your debt will last for 3 to five years. You are involved in the bankruptcy court process for the term of the 3-5 year plan. Stockbrokers, and commodity brokers cannot file a Chapter 13 bankruptcy petition.

Texas Chapter 13 Bankruptcy Information

Under a chapter 13 bankruptcy, a debtor proposes a 3-5 year repayment plan to the creditors offering to pay off all or part of the debts from the debtor’s future income. You can use Chapter 13 to prevent a house foreclosure; make up missed car or mortgage payments; pay back taxes; stop interest from accruing on your tax debt (local, Texas state, or federal); keep valuable non-exempt property (see Texas exemptions); and more. If you can stick to the terms of your repayment agreement, all your remaining dischargeable debt will be released at the end of the plan (typically three to five years). The amount to be repaid is determined by several factors including the debtor’s disposable income as is usually determined as part of the Texas Means Test. In addition, the total amount paid to creditors under the Chapter 13 plan must also be at least as much as creditors would have received if the debtor filed a Chapter 7 bankruptcy. To file Chapter 13 bankruptcy you must have a “regular source of income” and have some disposable income to apply towards your Chapter 13 payment plan.

Chapter 13 bankruptcy is generally used by debtors who want to keep secured assets, such as a home or car, when they have more equity in the secured assets than they can protect with their Texas bankruptcy exemptions. Chapter 13 bankruptcy is a reorganization whereas Chapter 7 bankruptcy is a liquidation.

A chapter 13 bankruptcy allows them to make up their overdue payments over time and to reinstate the original agreement. Where a debtor has valuable nonexempt property and wants to keep it, a chapter 13 may be a better option. However, for the vast majority of individuals who simply want to eliminate their heavy debt burden without paying any of it back, Chapter 7 provides the most attractive choice.