UNDERSTANDING CHAPTER 13 BANKRUPTCY
After filing under Chapter 13, a debtor will work with the trustee to create a suitable repayment plan that would pay off their creditors in a three to five year period. Once this plan has been approved, a debtor will make monthly bulk payments to the trustee who will take the money and then divide it amongst creditors.
Chapter 13 is desirable not only because it helps individuals create a more manageable repayment plan, but also because it mitigates the risk of having assets liquidated-making it an attractive option for individuals who have a lot of equity in their assets (such as high value cars, homes, etc.). In cases where a debtor is ineligible to file for Chapter 7 because their income is too high, they will be redirected to Chapter 13.
WHAT IS THE AUTOMATIC STAY?
As with all chapters of bankruptcy, as soon as you file, you will get the benefit of the automatic stay. The automatic stay will immediately put a halt on all attempts from creditors to collect-including phone calls, sending bills, threatening lawsuits, as well as attempting repossession or garnishment.
FILE UNDER CHAPTER 13
If you are considered filing for bankruptcy and think that Chapter 13 may be for you, we at Fuller & Eason encourage you to contact us as soon as possible. We have extensive experience, and our very own Mr. Fuller is one of the few lawyers in Dallas County who has received certification in bankruptcy law by the Texas Board of Legal Specialization. To learn more about how we can help, please give us a call today!
TEAM UP WITH A DALLAS BANKRUPTCY LAWYER
Another common option for people who are struggling with debt is Chapter 13 bankruptcy, also known as the “wage earner’s plan.” This chapter of bankruptcy is better suited than Chapter 7 for individuals and families who have a steady income and a desire to pay off their creditors, but who need a little additional help.