Chapter 13 bankruptcy Allen TX is a type of debt repayment plan for individuals who don’t qualify for Chapter 7 bankruptcy. People with a regular income can keep their property and repay creditors in three to five years under a court-approved plan. This legal option allows consumers struggling with car, tax or mortgage payments to use wages from their job to pay back loans and other types of debt without forfeiting their house, car or possessions. If you are facing home foreclosure or running behind on your bills, Chapter 13 bankruptcy can help you regain your financial footing.
Chapter 13 Bankruptcy Allen TX: What to Consider
A chapter 13 bankruptcy plan gives you a decent amount of time to pay back your debts, and your Chapter 13 trustee may even add time to your original plan. Once you’ve met your obligation under a Chapter 13 bankruptcy, you don’t have to pay any of your creditors in full. As long as you are making payments on time, you’ll get to keep your car or other possessions.
Your debts are paid out of your disposable income, after housing, food, utilities, medical care and other necessities are paid. You won’t have any extra income for the duration of your repayment plan. A Chapter 13 bankruptcy can stay on your credit report for up to 10 years. Although this is a tough position to be in, missing debt payments, lawsuits and repossessions are even harder to explain.
Personal Bankruptcy Allen TX: Credit Cards, Mortgages and Student Loans
You’ll lose all your credit cards when you apply for Chapter 13 bankruptcy, but you can apply for new lines of credit within one year to three years. You’ll have to pay a much higher interest rate, however.
Chapter 13 bankruptcy will make it hard for collection agencies to harass you over unpaid student loans, but it won’t erase the debt. You’ll still need to pay the outstanding amount on any student loans. Alimony and child support are still payable, but you will have less debt than you did before Chapter 13. Getting a mortgage after filing for Chapter 13 will be difficult unless you already have a mortgage, but there are lenders who specialize in “bad risks”, or people who have financial problems.
Collins and Arnove offer clients representation for Chapter 13 bankruptcy Allen TX. We are committed to thorough and honest personal service for your case. Call us today at 972-516-4255 for a consultation.
Collins & Arnove | Chapter 13 Bankruptcy Allen TX | 972-516-4255