At Toronjo & Prosser Law, we regularly guide clients in the Dallas-Fort Worth area through Chapter 13 bankruptcy proceedings. Well-versed in the applicable provisions of the U.S. Bankruptcy Code, we have a well-earned reputation for providing financially distressed individuals with informed representation and caring, efficient service.
Although this form of bankruptcy allows you to reorganize your debts while retaining your property, seeking bankruptcy protection requires careful consideration. When you consult with our bankruptcy attorneys, you can rest assured your interests will be protected.
We understand that you are likely experiencing financial trouble through no fault of your own — a job loss, a medical emergency, unexpected expenses — which is why we will never judge you. Instead, our legal team will work closely with you to assess your finances and help you navigate a Chapter 13 filing.
By understanding your circumstances and objectives, we can help to design a workable repayment plan that allows you to improve your day-to-day financial picture. Above all, we are committed to helping you get back on your feet, which is why we offer affordable payment plans. If you are faced with insurmountable debt, don’t delay. Contact our office today to set up a free consultation.
Chapter 13: The Reorganization Bankruptcy
Chapter 13 bankruptcy is known as a reorganization bankruptcy because it affords you time to establish a plan to repay debts over a period of 3-to-5 years. While you get to keep your property, you must have a steady income and be able to keep up with the monthly payments proposed under the Chapter 13 plan. Chapter 13 plan payments can bemade a variety of ways, including wage deductions, online payments, money orders, etc.
The plan requires you to repay your creditors with your disposable income, which is determined through a “means test.” Our legal team will work with you to analyze your disposable income, mortgage arrears, priority debts, etc., do determine whether or not you have enough income to be successful in chapter 13.
Depending on the circumstances and your disposable income, it may be possible to adjust or restructure monthly payments on secured debts into the payment plan, pay back a reduced amount to your unsecured debt, or eliminate unsecured debt entirely. Our legal team will work to achieve the best possible outcome for you.
How Do I File For Chapter 13 Bankruptcy in Texas?
At Toronjo & Prosser Law, our bankruptcy attorneys have personally handled thousands of petitions, so we are familiar with the rules and procedures of the local bankruptcy courts. We will work with you to draw up a repayment plan that is workable and that will pass muster with the court.
You should know that a court-appointed trustee will manage your case. He or she will conduct a meeting of creditors (a “341 Meeting”) to verify that you have sufficient income to make the proposed payments. Once the trustee, the court, and your creditors approve the plan, you will make monthly payments to the trustee, who will then distribute payments to your creditors according to an established schedule.
A Chapter 13 bankruptcy is discharged by court order once the payment plan has been completed — creditors will then be permanently barred from seeking payment for the discharged debt. It is important to remember, however, that not all of your debts will be eliminated.
Debts you will still be responsible for include:
- Child support
- Student loans
- Spousal support (alimony)
- Criminal fines
- Any debts not included in the plan
Finally, if you fail to keep up with the payment plan, your case will be dismissed and creditors can resume collection activities, including garnishments, foreclosures, repossession, evictions, and lawsuits.
What are the Benefits of Bankruptcy?
Filing Chapter 13 provides a number of benefits, including:
- Allowing you to retain your property
- Stopping all collection activities (e.g. garnishments, repossessions, creditor harassment, evictions, and civil lawsuits)
- Temporarily stopping foreclosure proceedings
- Permitting you to repay the balance of an auto loan (over a 3 to 5 year period)
In short, a Chapter 13 bankruptcy is designed to give your breathing room so that you can get your finances back on track. The best way to navigate the process is to work with the experienced bankruptcy attorneys at Toronjo & Prosser Law. We will take the time to explain your rights, explore all your debt relief options, and educate you about the process. We will also advise you on some of the limitations of chapter 13 bankruptcy. While chapter 13 can be the most powerful tool in this country to restructure debts, there are a few potential drawbacks.
Chapter 13 (as well as Chapter 7) will be listed on your credit report for a period of time. In addition, while you are in bankruptcy, you cannot take on new debt, buy anything on credit, or transfer property without prior court approval. Despite these drawbacks, a Chapter 13 bankruptcy can help you reorganize your debts and reset your financial future. When you work with our legal team, you will have peace of mind knowing that we are here to help lift your financial burden.
Does a Chapter 13 Erase All Debt?
No, Chapter 13 doesn’t erase all debt, but it lets you propose a repayment plan for most non-exempt debts. Certain debts like child support, student loans, and most taxes will remain. While you may not discharge all debts, Chapter 13 can stop creditor action and help you get back on track financially.
Contact Our Experienced Dallas Fort-Worth Chapter 13 Bankruptcy Attorneys
When your debts are spiraling out of control and your financial future is in jeopardy, that’s the time to call Toronjo & Prosser Law. We are highly regarded for helping our clients navigate both simple and complex Chapter 13 bankruptcy proceedings and for providing trustworthy advice when clients need it most. Above all, we will always put your best interests first and handle your case with the personal attention it deserves. Please contact our office today to speak with our experienced bankruptcy attorneys. We have offices located in Dallas and Southlake and help people across Texas including those in Denton, Fort Worth, McKinney and Plano.