Chapter 13 Bankruptcy Attorney in Houston

J. Thomas Black is a chapter 13 bankruptcy attorney in Houston and can help you with your decision on whether or not to file for chapter 13. Please read the information below to learn more about filing chapter 13 bankruptcy in Houston.

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is generally preferred by debtors who have a valuable asset, such as a home, that they wish to keep that is not completely covered by exemptions. This is possible because under Chapter 13, a debtor proposes a plan to repay creditors over a three to five year period, during which the debtor can make up overdue payments on any assets and pay into the plan the equivalent value of any assets not covered by exemptions. Since the debtor’s plan will require regular monthly or biweekly payments, Chapter 13 bankruptcy in Houston is usually only appropriate for an individual debtor who has a regular source of income.

Filing Chapter 13 Bankruptcy in Houston- Pros and Cons

Pros to Filing Chapter 13

You will keep all of your property, exempt and non-exempt.

You will have a longer period of time to pay the debt back.

The debts that are not canceled in a Chapter 7 discharge can be reduced in a Chapter 13 payment.

You have protection against creditor’s collection efforts and wage garnishment.

Any co-signers are immune from the creditor’s efforts as long as the Chapter 13 plan provides for full payment.

You have protection against foreclosure by your lender of your home.

You can file a Chapter 13 after your Chapter 7 discharge to pay off any remaining liens.

You can separate your creditors by class. Different classes of creditors will get different percentages of payment. This enables you to treat debts where there is a co-debtor involved on a different basis than debts incurred on your own.

You can file chapter 13 repeatedly.

Information About Filing Chapter 13 Bankruptcy

You are eligible to file chapter 13 if:
You have received a discharge under Chapter 7, 11 or 12 more than four years ago; or if you received a discharge under Chapter 13 more than two years ago.
You have a co-debtor on a personal debt. If you file for Chapter 7 bankruptcy, your creditor will go after the co-debtor for payment. If you file for Chapter 13 bankruptcy, the creditor will leave your co-debtor alone if you keep up with your bankruptcy plan payments.
You have a tax debt. If a large part of your debt consists of federal taxes, what happens to your tax debts may determine which type of bankruptcy in Houston is right for you.

Your Chapter 13 Bankruptcy Attorney in Houston

J. Thomas Black is a chapter 13 bankruptcy attorney in Houston and can help you with your decision on whether or not to file for chapter 13. Please read the information below to learn more about filing chapter 13 bankruptcy in Houston. If you need to file chapter 13 based on a foreclosure, please read more on our Houston foreclosure page.