The Pros and Cons of Declaring Chapter 13 Bankruptcy in Dallas, TX

Chapter 13 Bankruptcy Dallas TXThere is no doubt that deciding on whether to declare Chapter 13 bankruptcy in Dallas, TX, is tough. This one decision can have a huge impact on your credit, self-confidence and reputation. Chapter 13 bankruptcy is also referred to as a wage earner’s plan. It gives individuals earning a regular income the opportunity to create a plan to repay most, if not all, of their debts. The chapter allows people in debt to develop a proposal which enables their creditors to be repaid through regular installments over a three- to five-year period.

While the choice may seem difficult in the short term, there are many long-term benefits in choosing this option.


As this type of repayment is accomplished over a three- to five-year time period, it typically requires more time to repay your debts. The trustees of your bankruptcy may be able to make your payment terms more flexible. You may also be able to have your repayment amounts reduced. Once you have completed your repayment plan, you will no longer have any obligations to pay creditors in full. Under Chapter 13, you are able to keep the property upon which you are making repayments.

Under Chapter 13, you are able to keep the property upon which you are making repayments. While Chapter 13 remains on your credit record for several years, so do defaults, missed payments, lawsuits and repossessions. These issues will most likely become a complication in any future financing you may want to negotiate.

Should you decide to declare bankruptcy now, you will be able to rebuild your credit rating sooner rather than later. You may file for a Chapter 13 bankruptcy more than once; however, each of your filings will be reported on your credit record.

If you owe money on certain types of debts that survive bankruptcy, the number and amount of debt from when it can be relieved is potentially endless.


Declaring Chapter 13 bankruptcy can take as long as five years to completely repay your debts. Your debts will be paid from your disposable income. Your disposable income is the amount of money that remains once you have paid for all of your necessities including shelter, food and medical care. All of your remaining funds will be used for repayment for the duration of your repayment plan.

Filing for bankruptcy will negatively affect your credit score for many years and will remain on your credit report for a maximum of ten years. Some debts, like mortgage liens, may still require repayment after your proceedings have been completed.

For expert advice on declaring Chapter 13 bankruptcy in Dallas, TX, contact Collins and Arnove at 972-516-4255. Call today before 12 pm to schedule a same-day appointment with an attorney!

Collins & Arnove | Chapter 13 Bankruptcy Dallas Tx | 972-516-4255