It is not uncommon for people to incur debt to cover the costs of education, buying a home, and their other needs and desires. In some instances, however, debt can become overwhelming and may be too much of a financial burden for a person to bear. There are ways in which debtors can seek relief, however, such as Chapter 13 bankruptcy. If you are encumbered by debt, it is advisable to speak with an attorney regarding whether filing for Chapter 13 bankruptcy is appropriate to manage your debt. The dedicated Dallas Fort Worth Chapter 13 bankruptcy lawyers at Powell Law Offices are adept at helping people seek relief from their debt and can assist you with navigating the process of regaining control of your finances.Benefits of Filing for Chapter 13 Bankruptcy
Many people are hesitant to consider filing for bankruptcy due to a fear that they will need to relinquish their property. One of the main benefits of Chapter 13 bankruptcy, however, is that you get to keep your property while working to discharge your debts. For example, if your house is in foreclosure when you file for Chapter 13 bankruptcy, the foreclosure proceedings will be stayed, and you can keep your home as long as you continue to make mortgage payments. Chapter 13 bankruptcy also allows you to revise the payment schedule for secured debts, which often makes the payments lower and more manageable. Additionally, Chapter 13 bankruptcy can protect third parties who are co-signers on consumer debts with you. A knowledgeable Chapter 13 bankruptcy attorney in Dallas Fort Worth can explain these advantages further.Eligibility for Filing for Chapter 13 Bankruptcy
Only individuals can file for Chapter 13 bankruptcy. In other words, businesses or corporations seeking relief from debt are not eligible for Chapter 13 bankruptcy. Additionally, if you wish to file for Chapter 13 bankruptcy, you must prove that you have a regular income that will enable you to meet the monthly obligations for your household and pay into the repayment plan that you establish. If your income is insufficient or irregular, your proposed repayment plan may be rejected. Lastly, you must be within the statutory debt limits. Specifically, neither your secured debts nor your unsecured debts can exceed the amounts set forth under the bankruptcy code. If your debt is too high, you may be able to file for another type of bankruptcy, though.How Chapter 13 Bankruptcy Works
If you are eligible for relief via Chapter 13 bankruptcy, you must submit a proposed repayment plan to the court along with your bankruptcy petition. The plan must list all of your priority, secured, and unsecured debts and provide your payment plan for the next three to five years. A Dallas Fort Worth Chapter 13 bankruptcy attorney can help you develop this plan. The bankruptcy trustee and your creditors can review and object to your plan. If you come to an agreement on any proposed revisions to the plan, it will be submitted to the court for approval.
For the court to approve a plan, it must be feasible, drafted in good faith, and compliant with applicable laws. If your plan is approved, you will make payments to a trustee, who then distributes the payments to creditors, which allows you to pay down your debt without dealing with creditors. If you successfully make all of your payments during the term of the plan, any remaining qualified dischargeable debts will be forgiven.Meet with a Capable Dallas Fort Worth Attorney
If you are seeking relief from your debt but wish to retain your property, you should meet with an attorney to discuss whether you may be eligible to file for Chapter 13 bankruptcy. The capable attorneys at Powell Law Offices are proficient at aiding people in bankruptcy matters and will work diligently to help you manage your debt. We have offices in Grapevine and McKinney, and we regularly assist parties with bankruptcy filings throughout Dallas and Tarrant Counties. You can call us at (972) 584-9382 or contact us through our online form to schedule a confidential and free meeting with a Chapter 13 bankruptcy lawyer in Dallas Fort Worth regarding your situation.