Jacksonville Nacogdoches
(903) 586-5100 (936) 225-1800
What is Chapter 13 bankruptcy?
Chapter 13 bankruptcy is a reorganization bankruptcy. This type of bankruptcy is for individuals who are behind on their secured debts such as a mortgage, vehicle payments or taxes. The back payments are lumped together and paid back over a period of three to five years.
However, the following CANNOT be included:
- Child Support and alimony
- Federally Guaranteed Student loans
If I file for Chapter 13, how much will my plan payments be?
Actually that is determined on a case by case basis. You and your attorney will put together a budget based on your household income and expenses. A payment will then be determined based on this information.
How long will I be in Chapter 13 bankruptcy?
You will be in Chapter 13 bankruptcy for a period of 36 to 60 months. The length of time is determined by various factors including how much you owe in back payments to your secured creditors and what your household income is.
Do I still have to make my mortgage and car payments?
Yes, if you want to keep the collateral, you will have to stay current on those payments after we file your case. This would include houses, cars, furniture, computers or storage buildings. If you get behind on these payments, the creditor will file a motion with the court to "lift the stay". This motion is asking the court for permission to repossess the item.
Will My Creditors Stop Calling Me?
Yes. By law, all actions against a debtor must cease once the documents are filed. Creditors cannot initiate or continue any lawsuits, wage garnishees, or telephone calls demanding payments.
Can I file for Chapter 13 bankruptcy if I have previously filed?
Yes, if it has been more than two years since you filed a previous Chapter 13 and received a discharge or four years since you filed and received a discharge in a Chapter 7.
If your case was dismissed without prejudice, you may refile your Chapter 13 case at any time. However, there are restrictions on the impositions of the automatic bankruptcy stay.
We are a debt relief agency. Our debt relief lawyers help people file for bankruptcy under the United States Bankruptcy Code. If you need debt relief, our lawyers are ready to help.
