Benefits in filing a Chapter 13 Bankruptcy
A chapter 13 bankruptcy is considered a reorganization bankruptcy. It becomes a repayment plan that is anywhere between 3-5 years. It helps paying off some of your past-due and current debts and helps you keep valuable property such as your home and automobile.
A lot of times you might be in the process of losing your home or automobile for past-due payments, and would like to keep your property, a bankruptcy attorney can help you reorganize your debt and put you on a payment plan that will help you pay your home and automobile with a percentage to get caught up on the amount you have fallen behind. In order for a chapter 13 bankruptcy to work for you, you would have to keep making your monthly plan payments and following court orders. There are a few restrictions on the debtor, plan payment has to be followed and you are not able incur a large amount of new debt unless the court approves it. If you are trying to refinance, sell, or purchase a new home you will have to get court approval as well. Modifications are also provided if you fall ill, or because of the loss of a job. It is always best to inform your bankruptcy attorney about this so they can help you through this tough time.
When you decide to move forward with your chapter 13 bankruptcy, the bankruptcy attorney will explain the benefits and the risks to you and your financial future. Keep in mind that a bankruptcy attorney will also have substantial knowledge on debt management.
For more information on a chapter 13 bankruptcy in or around the Houston area, schedule a free meeting with a bankruptcy lawyer from the Rashid Law Firm by calling us at 832-209-8833. We have offices at 10301 Northwest Freeway, Suite 409, Houston, Texas 77092, and 10222 Gulf Freeway, Houston, TX 77034.
Read our helpful bankruptcy blog for more information on chapter 13 as well. We have a great search function recently added as well.