Chapter 13 bankruptcy is only for consumers (there is no Chapter 13 for business entities such as corporations, LLCs, etc.). A Chapter 13 bankruptcy can help if you are behind on your mortgage, a car loan, owe the IRS, and more. A Chapter 13 bankruptcy involves a repayment plan, typically 3 to 5 years in duration. Chapter 13 bankruptcy can help with a variety of issues and repayment to certain creditors (credit cards, medical bills, utility bills, auto loan repossession deficiencies, personal loans and some types of IRS debt) can range from 0% to 100% depending on your specific factual and legal circumstances.
The first fact we look at to determine if you are eligible for a Chapter 13 bankruptcy in Houston is where you live. Houston is in the “Southern District of Texas” which includes the following counties: Austin, Brazos, Colorado, Fayette, Fort Bend, Grimes, Harris Madison, Montgomery, San Jacinto, Walker, Walker and Wharton. If you live in Brazoria, Chambers, Galveston or Matagorda County you may also elect to file your bankruptcy in Houston.
As long as your debts do not exceed the Chapter 13 debt limits, many people can qualify for a Chapter 13 bankruptcy. Whether Chapter 13 makes sense for you or not depends on your specific factual and legal circumstances. Whether a Chapter 13 bankruptcy is right for you will be discussed during a consultation with a Houston bankruptcy attorney.
This seems like a long commitment, but for some people the monthly payment in their Chapter 13 bankruptcy is less than they would normally be paying monthly on their debts. For other people Chapter 13 bankruptcy is a chance to completely pay off a car loan or to get caught up on your mortgage during that 3-5 year period.
A Chapter 13 bankruptcy can be a tool to help with a variety of problems. After a free consultation I can tell you if a Chapter 13 bankruptcy in Houston may be able to help you based on your specific facts.
Some of the more common reasons for filing a Chapter 13 bankruptcy are:
Chapter 13 can help you to become current on your mortgage.
Chapter 13 can help you pay off your car and may be able to lower your interest rate.
Your household income is too high to qualify for a Chapter 7 bankruptcy and you still need help with your credit cards.
You are struggling with debt owed to the IRS.
You have property that would not be protected in a Chapter 7 bankruptcy.
The following is a list of common debts and is not a complete list of possible debts. In general, a Chapter 13 bankruptcy may be able to help with:
While it is possible for a person that is a not a lawyer to file their own bankruptcy, the bankruptcy process is filled with many potential pitfalls. Filling out the paperwork incorrectly or missing a deadline can result in a variety of consequences, including not being granted a discharge (the paper that the judge signs that wipes out certain debts).
Hiring an experienced Houston bankruptcy attorney will help you avoid those pitfalls.
Chapter 13 bankruptcy is complicated and includes a lot of required forms and strict deadlines. Failure to timely file forms, correctly complete forms, and meet deadlines can result in your bankruptcy being dismissed. Hiring an experienced bankruptcy lawyer in Houston will help you avoid those pitfalls.
No. When you file Chapter 13 bankruptcy you are required to list all creditors. A creditor is anyone you owe or who might say you owe them. You will sign papers stating that you have listed all creditors to the best of your knowledge, including credit card companies, hospitals, doctors, student loan companies, the IRS, mortgage companies, friends, family members, etc.
When you file Chapter 13 bankruptcy you are required to list all of your assets. An asset is anything you own or have an interest in (cars, homes, cash, bank accounts, furniture, etc.). Intentionally omitting an asset can land you in very hot water. This even means listing things you own that may be titled in someone else’s name. For example, a car that is yours but has a title in another person’s name or a home that was inherited and is still in the deceased’s name would both need to be listed as assets.