Chapter 13 Bankruptcy Lawyer Fort Worth, TX
If you’re thinking about filing for bankruptcy and you earn a steady income, you’ll want to talk to an experienced Chapter 13 bankruptcy lawyer Fort Worth, TX residents trust about your options. Chances are that if you earn a steady income, you aren’t eligible to file for Chapter 7 bankruptcy, which is only an option for low-income filers. Unless you own a small business, or make your living as a farmer or in the commercial fishing industry, your likely “best bet” to obtain debt relief through the bankruptcy process is filing under Chapter 13 of the Bankruptcy Code.
With that said, it’s generally a good idea to speak with an experienced Fort Worth, TX Chapter 13 bankruptcy lawyer before making any assumptions (for better or for worse) about your bankruptcy case. Our experienced legal team will help you to make an informed decision about your options, once we learn the details of your financial situation and debt management goals.
How Does the Chapter 13 Bankruptcy Process Work?
Chapter 13 bankruptcy is commonly referred to as “reorganization bankruptcy.” This process allows filers to restructure their debt so that their monthly debt payments become manageable, based on income and circumstance. Filers are then required to remain current with their payments, per the unique terms of their specific repayment plan, for 3 to 5 years. At the end of this repayment period, if the bankruptcy payments have been made successfully throughout the life of the repayment plan, any debt obligations that are dischargeable will be eliminated. This means that the filer will no longer be responsible for those outstanding balances and that creditors will no longer be permitted to demand payment for those accounts.
One of the first things that happens when Chapter 13 bankruptcy petitions are filed is that an automatic stay goes into effect. The automatic stay essentially “freezes” creditors’ ability to demand payments and pursue legal action against debtors under most circumstances. This automatic stay gives filers, their lawyers, and their creditors time to work through the bankruptcy process successfully, while freeing the debtor from the burdens of creditor harassment, additional penalties, etc. The stress relief that occurs when the automatic stay goes into effect is understandably significant.
Legal Assistance Is Available
You don’t have to be sure that you want to file for Chapter 13 bankruptcy to schedule an initial consultation with the experienced Texas legal team at The Allmand Law Firm, PLLC. Scheduling a consultation doesn’t obligate you to take any legal action whatsoever. This initial meeting simply ensures that prospective clients can explore their options and ask questions. After we’ve helped you explore your options, you’ll be empowered to make a truly knowledgeable choice about how you want to handle your debt moving forward. Please consider connecting with our Fort Worth, TX Chapter 13 bankruptcy lawyer team today; we look forward to speaking with you.
How to Get Through Chapter 13 Bankruptcy
A Chapter 13 bankruptcy debt plan lasts between three and five years and requires debtors to make regular payments to trustees. Dealing with the process can be stressful at times, but you can get through it. Here are some tips for surviving Chapter 13 bankruptcy.
- Create a Stick Budget: When you are repaying your creditors, you will not have as much disposable income anymore. To complete your Chapter 13 bankruptcy successfully, it is necessary to create a strict budget and stick to it. Make a list of your current expenses and think about what you can realistically cut out. For example, maybe you cut your cable bill or stop going out to eat at restaurants as frequently. While you might miss it at first, it is a much better feeling to be free of your debt.
- Don’t Create New Debt: During your Chapter 13 bankruptcy debt plan, the last thing you want to do is rack up more debt. If you purchase a new vehicle or wardrobe, you will have a more difficult time repaying your creditors. If you have no choice but to incur new debt, you should let your Chapter 13 bankruptcy lawyer in Fort Worth, TX know right away. Racking up new debt without the approval of the court could get your case dismissed.
- Inform Your Lawyer About Any Changes: It is important to keep in contact with your Chapter 13 bankruptcy lawyer in Fort Worth, TX throughout your debt plan. If any changes have occurred, such as a job loss or medical expenses, you should inform your lawyer immediately. After all, you might not be able to keep up with your current repayment plan. He or she can help you make changes to your plan to keep you on track.
- Pay Your Bills on Time: Chapter 13 bankruptcy is designed to give you time to get back on track with your payments, including your mortgage, credit card bills, child support and taxes. If you make late payments or get behind on your payments, you could jeopardize your bankruptcy case. That is why you should do your best to pay all your bills on time. If you have trouble remembering making your monthly payments, you should think about setting up automatic payments.
- Create a Support Network: Staying on top of your repayment plan for Chapter 13 bankruptcy is tough at times, so it is important to have supportive people around you. Surround yourself around family members and friends who understand your situation and who are willing to lend a shoulder to lean on.