Bedford Chapter 13 Bankruptcy Attorneys
Chapter 13 — Bankruptcy Without Liquidation
Chapter 13 of the United States Bankruptcy Code describes the repayment plan form of bankruptcy that many individuals select as a last resort. When financial hardship has consumed the lives of individuals in Texas, they can benefit from this debt relief process. Under a Chapter 13 bankruptcy, the debtor develops a repayment plan for paying back his or her debts. The filer will make regular payments to a Chapter 13 trustee who distributes the payments to creditors. While this plan is in action, creditor collection actions are not permitted. Speak with an experienced and highly qualified Bedford bankruptcy attorneys from our firm for the information you need.
Filing for Chapter 13 Bankruptcy in Texas
Chapter 13 is often preferable over Chapter 7 liquidation bankruptcy for individuals who have non-exempt property they wish to keep. In a Chapter 7 bankruptcy, the trustee will sell all non-exempt property to pay off creditors. The primary difference between these two forms of bankruptcy is that a Chapter 7 bankruptcy will discharge debts by turning over property, but a Chapter 13 bankruptcy allows you to keep most, if not all, of your property. You also receive the opportunity to pay what you owe through the Chapter 13 process.
If you choose to file for bankruptcy under Chapter 13, you will pay off your unsecured creditors for either three or five years until all agreed payments have been made. At that point, the remaining debts can be discharged even if the outstanding balance is not completely satisfied. An individual must first undergo credit counseling with an approved agency before being able to begin this process. The debtor will then file a petition in the local bankruptcy court and pay the required fees. Shortly after, he or she will need to file a repayment plan, and then a hearing will be held to determine if it can be approved.
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