At The Vida Law Firm, PLLC, we assist people throughout the Fort Worth metroplex area that are facing daunting debts and collection activity, but still have a steady income.
A Chapter 13 is a reorganization bankruptcy for individuals. The most common reasons why people seek assistance in Chapter 13 are being behind on house payments, car payments, IRS debt, property taxes, and child support. Most people also have some combination of credit card debt, medical bills, and student loans that need to be included in a reorganization.
If you are facing circumstances like these, a Chapter 13 bankruptcy in Fort Worth may be an option to consider. Whether you are set for foreclosure, facing a repossession, or are just overwhelmed with debt collection calls, Chapter 13 halts collection activity. Reorganizing debt in a Chapter 13 allows you to force a repayment schedule upon your creditors over a period of 36 to 60 months. Chapter 13 may be more helpful than a Chapter 7 to someone who has debt obligations that cannot be discharged under Chapter 7, such as IRS debt, child support, spousal maintenance payments, divorce settlements, or student loans. It is also preferable to a Chapter 7 if you want to keep your home and car, but cannot make the payments under the original terms of the loans or have missed payments.
To be eligible to file under Chapter 13, you must have less than $394,725 in unsecured debt and $1,184,200 in secured debt. These amounts change periodically, and one of experienced attorney can advise you as to whether you are eligible under Chapter 13 or not; if your debts exceed statutory limits, you might be able to file under Chapter 11 instead.
The attorney you hire is responsible for preparing a plan of reorganization for you. The plan is very important to you because you want the best deal that you can get, and you are relying upon your attorney’s experience, knowledge, competence, and relationships to prepare your plan and get it approved by the Trustee and the Court. You are going to have that attorney for the full 3 to 5 years, so it is important for you to have a high level of confidence in your attorney’s abilities and resources. Behrooz and Carla Vida have a combined legal experience of over 53 years.
At The Vida Law Firm, PLLC, an attorney custom tailors your plan to your specific circumstances. Every client has a different combination of debts and legal issues, so every client’s plan will be different. The plan of reorganization details what your monthly payment is, the length of the plan, who is getting paid, in what order they get paid, what interest rate they get, and who does not get paid. You will start making payments according to the plan to the Chapter 13 Trustee, who is the party responsible for administering your case and distributing funds to the various creditors. Every client in a Chapter 13 will have some type of payment, but the amount of that payment will vary according to the debt you have.
Once you have made all of the payments required under your repayment plan, you will receive a discharge order. A Chapter 13 discharge means you have successfully completed making all of your plan payments. Some of your unsecured debts, such as credit card and medical debt, may be discharged at the end of the case, meaning that you are not legally responsible for that debt you were not required to pay through the plan.
For additional information about Chapter 13 bankruptcies, please see our Chapter 13 frequently asked questions page.