When you file for a Chapter 13 bankruptcy in Plano TX, your lawyer will help you work out a plan to pay back some or all of the money you owe creditors. This plan means you’ll get to keep your home, cars and other property. Chapter 13 bankruptcy repayment takes between three and five years, depending on the debt. The court must approve your bankruptcy plan and you must prove you’ll have enough income to make payments on time.
Businesses, including sole proprietorships, can’t file for Chapter 13 bankruptcy. Chapter 11 bankruptcy is reserved for businesses with debt trouble. You can include business debts for which you are personally responsible in a Chapter 13 bankruptcy in Plano TX.
If your income is low or irregular, the court may not let you file for Chapter 13 bankruptcy. If the debt amount is too high, you won’t be able to file, either. Secured debts owed must not be over $1,149,525; unsecured debt can’t be over $383,175. If you owe an unsecured debt, such as a medical or credit card bill, creditors can’t take your property. A secured debt means the creditor can take your property if you don’t pay the bill.
You can’t file for Chapter 13 bankruptcy until you receive credit counseling from a credit agency cleared by the United States Trustee’s Office. If you can’t afford to pay the agency, you can receive counseling for free or at a reduced rate.
Your repayment plan must show how much of the debt you’ll pay and how you’ll pay it. You’ll need to use the court’s form to show how your repayment plan will proceed. The first thing you’ll do is fill out paperwork listing your debts, income, expenses and property, as well as a viable plan for repaying your debts.
Chapter 13 bankruptcy in Plano TX is sometimes referred to as the wage earner’s bankruptcy plan. It is used by people who need to repay the IRS or get up to date on mortgage or vehicle payments. With this type of bankruptcy plan, you’ll be able to stop foreclosure on your house, repossession and creditor harassment.
Collins & Arnove provide representation for Chapter 13 bankruptcy in Plano TX. We are bankruptcy attorneys, board certified in consumer bankruptcy law. With over 20 years experience practicing bankruptcy law in North Texas, attorney Greg Arnove has handled tens of thousands of cases in the region. If you are having trouble paying your debts, call Collins and Arnove at 972-516-4255 for a free consultation or use the contact form on our website.
Collins & Arnove | Chapter 13 bankruptcy Plano TX | 972-516-4255