Dallas Chapter 13 Bankruptcy Lawyer

team at The Allmand Law Firm, PLLC can help you to make an informed decision about your options. Once you determine which Chapter is best for your circumstances, we can help you successfully navigate the bankruptcy filing process.

If you are in a difficult financial situation, but are unsure of what to do, Chapter 13 bankruptcy might be right for you. Bankruptcy is a tool that can help you manage your debts and regain control of your finances. If you have enough disposable income that you can make reasonable payments on your debts, then Chapter 13 can provide you with a solution.

Call Allmand Law Firm, PLLC today at 214-884-4020 to find out how a bankruptcy attorney can help you.

Choosing Between Chapter 7 and Chapter 13 Bankruptcy

One of the first things that our Chapter 13 bankruptcy lawyer team will do during your initial consultation in Dallas is ask you about your income and household size. Not every bankruptcy process is available to everyone. Just as small business owners generally file under Chapter 11, members of low-income households generally file under Chapter 7. In fact, Chapter 7 bankruptcy is only available to individuals and families who don’t earn much money. The income limits (as compared to household size) applied to the Chapter 7 process are commonly referred to as the Chapter 7 Means Test. By asking you a few questions, we’ll be able to determine whether Chapter 7 bankruptcy is an option for your family.

If you earn too much money to pass the Chapter 7 Means Test or you own unusually expensive property, we’ll likely recommend that you consider filing for Chapter 13 bankruptcy. Chapter 7 bankruptcy is commonly referred to as “liquidation bankruptcy” as filers’ non-exempt property may be sold to repay their creditors. After the liquidation process is complete, a filer’s eligible debts will be discharged in as little as 90 days.

By contrast, Chapter 13 is commonly referred to as “reorganization bankruptcy.” This process allows filers to restructure their debt so that their monthly debt payment is manageable – based on that filer’s income and expenses. After a 3-5 year repayment period has been successfully completed, any remaining eligible debt is discharged.

Both of these bankruptcy options afford filers the opportunity to achieve a fresh start and to begin building a solid financial foundation moving forward. However, neither option is right for every filer. Even some individuals who are eligible to file under Chapter 7 opt to file under Chapter 13 because they have legitimate concerns about protecting unusual assets and/or luxury property that can’t be safeguarded from sale through the exemption process. Our dedicated team can help to ensure that you file for bankruptcy under the Chapter that is right for your circumstances.

Is Chapter 13 Bankruptcy Right for Me?

While Chapter 7 bankruptcy liquidates unsecured debt, Chapter 13 bankruptcy gives the filer the chance to restructure their debt into manageable payments over a longer period of time – typically three to five years. In order to qualify for Chapter 13 bankruptcy, you must have some form of income, and your wages must be sufficient to fund your repayment plan.

Filing for Chapter 13 bankruptcy can have many benefits, including the following. You:

• Will repay your debts over three to five years
• May be able to remove a second or third mortgage
• May be able to save your home from foreclosure
• Can put an immediate end to creditor harassment
• Can move forward with a fresh financial start

It can be difficult to determine whether Chapter 13 bankruptcy is right for you. However, a Chapter 13 debt management lawyer can review your specific situation in Dallas and help you understand your legal rights.

How to Stop Foreclosure Through Chapter 13

Chapter 13 bankruptcy allows you to reorganize your debts so that you can avoid repossession and/or foreclosure. If you are receiving foreclosure notices or you have fallen behind on your mortgage, Chapter 13 could be a powerful tool to help you regain control of your finances. The moment you file for bankruptcy, an automatic stay is put into place, which halts foreclosure proceedings and other debt collection methods. If you are facing foreclosure in Dallas, speak with a Chapter 13 bankruptcy lawyer immediately.

The Chapter 13 Bankruptcy Timeline

• Step #1: You must take a credit counseling course within 180 days of filing.
  Every person who files for Chapter 13 bankruptcy must complete an approved credit counseling course prior to filing for bankruptcy. You must take the course from an agency approved by the U.S. Trustee’s Office. The session will help you understand your situation and make sure you have income sufficient enough to repay creditors over time. The course may cost between $25 and $35, but that fee may be reduced or waived if you cannot afford it.
• Step #2: Once you file under Chapter 13, the automatic stay will go into effect.
  You must pay bankruptcy filing fees and submit specific forms to file your Chapter 13 bankruptcy. Then, a court will issue an automatic stay order that will notify your creditors to stop all collection efforts. If you have filed bankruptcy once or more within the last year, you may not get an automatic stay, or it may be limited. Once the Chapter 13 automatic stay is in place, all foreclosures, repossessions, and other collection efforts must pause.
• Step #3: You will submit your payment plan to the bankruptcy court for approval.
  You will work with your Chapter 13 bankruptcy attorney to establish a payment plan that you feel is reasonable for your specific situation. It can be difficult to know how much of a payment will be manageable for you. A careful assessment of your finances and working through the credit counseling courses can help.
• Step #4: About 20–40 days after you file, the creditors meeting will take place.
  The meeting of the creditors is a hearing where your trustee, attorney, and any creditors who wish to attend will gather and discuss your Chapter 13 bankruptcy in Dallas. It can be intimidating to know that everyone will be discussing your situation; however, keep in mind that this is a part of the process that everyone encounters. Creditors rarely appear at the meeting of the creditors. Your attorney can help you review information and answer questions.
• Step #5: A confirmation hearing will be held 20–40 days after the creditors meeting.
  The bankruptcy court will review your proposed payment plan, and if it meets the necessary requirements, then it will be confirmed. Necessary requirements include the following. Your payment plan must:
  • Be feasible in that you have enough income to pay creditors as proposed.
  • Be made in good faith, and you cannot be manipulating the bankruptcy process.
  • Comply with bankruptcy law, including precedence of creditors and priority debts.
• Step #6: You must complete secondary counseling after the creditors meeting.
  All Chapter 13 bankruptcy filers must complete a second credit counseling course during the bankruptcy process. This course will help you understand how to budget and get back on your feet after bankruptcy.
• Step #7: You will start to repay your debts each month for three to five years.
  Your payment plan should be effective immediately, and you will repay debts over the next three to five years. However, if your finances change and you need to modify your payment plan or change your Chapter 13 bankruptcy to a Chapter 7, you may be able to do that with the help of a skilled attorney.
• Step #8: At the end of your bankruptcy, remaining debts will be discharged.
  You will pay many of your debts over the course of your payment plan; however, any debts that are not paid may be discharged. There are certain types of debts, such as child support and some taxes, that bankruptcy cannot discharge. However, most of your unsecured debt will be eliminated once your Chapter 13 bankruptcy is done.

Am I Eligible for Chapter 13 Bankruptcy?

Unlike Chapter 7 bankruptcy, you are not required to pass a “means test” in order to file for Chapter 13 bankruptcy; however, you should know that eligibility is still limited. In order to qualify for Chapter 13, you must be able to show the bankruptcy court that you have sufficient income to meet your repayment obligations — that is, after you subtract any required payments on secured loans, like mortgage payments or car payments.

You can use income from any of the following to fund your plan:

• Wages/salary from your job
• Income from self-employment
• Social Security or disability benefits
• Workers’ compensation benefits
• Unemployment benefits or welfare
• Child support or spousal support
• Proceeds from property sales

In order to be eligible for Chapter 13 bankruptcy, you must also meet debt limit requirements. Your secured and unsecured debts cannot exceed a certain amount, which changes each year. Secured debt is that which is linked to specific property, such as a house or car. Creditors may have a right to take back that property if they do not receive payment. Unsecured debt is that which is not linked to specific property, such as medical bills and credit cards. If your debt amounts are higher than the limits specified by law, then you may have to file a different type of bankruptcy, like Chapter 11.

You must be an individual in order to qualify for Chapter 13 bankruptcy. You cannot be a business. However, if you are an individual with business debt in your name, then you can include that debt in your bankruptcy. Business-related debt may be part of the debt that you reorganize through Chapter 13 bankruptcy.

Our attorneys could help assess your eligibility for Chapter 13 bankruptcy in Dallas.

Hire a Dallas Chapter 13 Bankruptcy Attorney

If you have questions about the bankruptcy process, know that you can get knowledgeable answers quickly from a team of dedicated, compassionate, and focused attorneys. Please don’t hesitate. Schedule a confidential, no-risk consultation with our Dallas Chapter 13 bankruptcy lawyer team today; we look forward to speaking with you.