You have options when it comes to bankruptcy and debt repayment. If you have the ability to make monthly payments on your debt, you may be able to file for bankruptcy under Chapter 13 and have some of the debt forgiven upon completion of your repayment plan.
The length, terms, and monthly payment amount of your Dallas Chapter 13 bankruptcy repayment plan will vary depending on your unique circumstances. Our experienced Chapter 13 bankruptcy attorneys at Allmand Law Firm are ready to help you learn about your options and begin the process of resolving debt through bankruptcy.
What Debts Will a Chapter 13 Repayment Plan Include?
If you file for Chapter 13 bankruptcy in Dallas, your repayment plan—consisting of either 36 payments over three years or 60 payments over five years—must include you paying off certain priority unsecured debts in their entirety, such as back spousal or child support payments, your most recently accrued tax debt, and any compensation or benefit fund contributions owed to employees. Other debts that must be fully paid off through a Chapter 13 repayment plan include:
- Delinquent mortgage payments
- Delinquent car loan payments
- Any secured debt, i.e., debt connected to a physical asset that could be repossessed as collateral in the event the debt is not paid
- Attorney’s fees and other professional fees approved by a bankruptcy court
- A commission to the trustee overseeing your repayment plan
All other general unsecured debts, including credit card balances and medical bills, but notably not student loans, are paid off through the repayment plan only once all the aforementioned debts are covered. If these general unsecured debts are not fully paid off at the conclusion of the repayment plan, the bankruptcy court will erase any remaining balances.
How Family Income Affects Chapter 13 Repayment Plan Length
In accordance with the law, a Chapter 13 bankruptcy repayment plan in Dallas will usually be for five years for those whose household income exceeds the statewide median yearly income. Your yearly income is calculated by adding the gross income for the previous six months of all members of your household, and multiplying that number by two.
If your household yearly income is less than the applicable statewide median, you can ask the court for a three-year repayment plan. Support from legal counsel may be beneficial throughout this process and in being successful in your request for a shorter payment plan.
Learn More From a Dallas Attorney About Chapter 13 Bankruptcy Repayment Plans
Of course, this is only a summary of a possible Dallas Chapter 13 bankruptcy repayment plan. Your specific circumstances and needs will determine your best solution for getting out of debt, whether that is Chapter 13 or another bankruptcy option.
There is expert help available to you as you pursue the best possible outcome for your family. Contact Allmand Law Firm today to explore your choices for debt resolution through bankruptcy.
