Are you considering Chapter 13 bankruptcy Plano TX but aren’t sure what it entails? Here’s what you need to know about filing for chapter 13 bankruptcy as an individual or married couple.
Chapter 13 Bankruptcy Plano TX: What You Need to Do
Chapter 13 bankruptcy is available for individuals and married couples who file jointly as husband and wife. When you file for Chapter 13, you’ll need to show proof that you are up to date on your state and federal taxes for the last four years. If you’re not current on taxes, you can postpone proceedings until you are caught up on the paperwork. The bankruptcy filing will be dismissed if you don’t produce the returns in a reasonable length of time.
You’ll need to make sure your debts aren’t higher than $1,149,525. 00. (This amount will change to adjust for inflation in April 2016.) Work with your bankruptcy lawyer to show the court that you have enough money to make payments on secured debts after allowed expenses are subtracted. You’ll need to pay back 100% of some debts, or the judge won’t approve your bankruptcy plan. Priority debts are tax debts, child support, back alimony and tax debts. Mortgage payments must be made in full if you want to keep your house.
Bankruptcy Plano TX: Advantages Over Filing Chapter 7
Filing for Chapter 13 bankruptcy may be better for you than filing Chapter 7 for various reasons. They include:
- You owe money on a student loan, taxes or other obligation that can’t be discharged under Chapter 7.
- You have unpaid car or mortgage payments. Under Chapter 13 bankruptcy, you can make up these payments over time.
- You have a codebtor on a personal debt. On a Chapter 13 bankruptcy, creditors can’t collect from your codebtor, as long as you make timely payments. During a Chapter 7 bankruptcy, creditors can go after all codebtors for payment.
- You have court fees, marital debts from a settlement or divorce agreement, money owed on loans from a retirement plan or condo/homeowners association fees payable after the bankruptcy filing date. These debts are dischargeable in a Chapter 13 filing.
Contact the Best Personal Bankruptcy Lawyer Plano TX
At Collins & Arnove, we can help you decide if Chapter 13 bankruptcy Plano TX is appropriate for you. Greg Arnove is a board certified Consumer Bankruptcy Attorney who has practiced bankruptcy law in North Texas for over 20 years. Along with the rest of our legal staff, Mr. Arnove will guide you through the difficult bankruptcy process and help ensure your payments are reasonable. Call us at 972-516-4255 for a free consultation. Read client testimonials here.
Collins & Arnove | Chapter 13 Bankruptcy Plano TX | 972-516-4255