Houston Chapter 13
A Houston Chapter 13 bankruptcy, also called a wage earner bankruptcy, lets people and families with regular incomes define a plan that enables them to repay all or some of their debts, in exchange for the clearing of those debts.
If you live in the greater Houston area and suspect that a Chapter 13 bankruptcy might be right for you, contact Swindell & Associates, P.C. today.
Chapter 13 bankruptcy in Houston
When people in debt file for Chapter 13 in Houston, they must propose a plan that enables them to repay their creditors over a period of three to five years. If your income is less than the applicable state median for families of your size, the plan must be for three years unless the court finds cause to extend the timeframe.
Chapter 13 bankruptcies offer several advantages over Chapter 7 bankruptcies.
- Most importantly, a Chapter 13 bankruptcy in Houston allows you to save your home should it be under foreclosure. Filing a Chapter 13 bankruptcy legally forces any and all foreclosure proceedings to halt, and may alleviate your mortgage woes during the course of your repayment plan assuming, of course, that you make all mortgage payments on time during that repayment plan.
- A Chapter 13 bankruptcy also lets you reschedule secured debts other than the mortgage of your primary residence. Such debts can be extended over the life of your Chapter 13 plan; this may reduce your monthly payments.
- Chapter 13 bankruptcy also provides protection for third parties liable for the consumer debts of the debtor. In other words, a Chapter 13 bankruptcy offers some degree of protection for cosigners.
- Chapter 13 serves, in many ways, as a consolidation loan where you make payments to a bankruptcy trustee who distributes the monies to the creditors. You have no direct contact with creditors while under the terms of a Chapter 13 protection.
