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Chapter 13 Bankruptcy

Chapter 13 bankruptcy is an option that gives you more flexibility in keeping your property and paying off your debt. Although you may be able to qualify for Chapter 7, Chapter 13 may be a better option if you have significant mortgage arrearage or other property that you would like to keep beyond the bankruptcy process.

The Basics of Chapter 13 Bankruptcy

Chapter 13 bankruptcy discharges your unsecured debt after you complete a debt repayment plan over three or five years. Your monthly payments are based upon your disposable net income. Once the payment plan is finished, which may pay off only a portion of your unsecured debt, any remaining unsecured debt is discharged. Home mortgage arrearages can be rolled into your payment plan.

Therefore, Chapter 13 bankruptcy is a good choice if you are behind on your mortgage payments because it allows for more flexibility in keeping your home. Chapter 13 may also allow you to reduce or cram down payments on other secured debts such as car loans. Finally, Chapter 13 bankruptcy allows more flexibility in paying your attorney fees, as you can elect to also make those fees part of your payment plan.

Things to bring to your consultation include:

  • Two credit reports from different credit reporting agencies
  • A list of your expenses and income
  • Statements from any other debt holder not listed on the credit report
  • Last 6 months paycheck stubs

Now Is the Time

Coats & Todd helps people in Plano, Richardson and across Texas file for bankruptcy. We will explain the differences between Chapter 7 and Chapter 13 and help you decide which is right for you. Our attorneys will simplify the process and make sure you understand what you can keep. Why wait until the problem is much worse? Start today. To make an appointment for a free consultation, please contact us today.