At The Vida Law Firm, PLLC, we assist individuals and businesses throughout the Fort Worth, Texas area that are facing daunting debts and collection activity, but still have a steady income.
If you or your business is facing circumstances like these, a Chapter 13 bankruptcy in Fort Worth may be an option to consider. Chapter 13 temporarily halts collection activity, allowing you to negotiate new, more manageable payment terms with your creditors. Fort Worth Chapter 13 is particularly appropriate for people whose obligations are largely made up of debts that cannot be discharged under Chapter 7, such as child support, spousal maintenance payments, or student loans. It is also preferable if you have an income and want to keep your home and car but cannot make the payments under the original terms of the loans.
To be eligible to file under Chapter 13, you must have less than $336,900 in unsecured debt and $1,010,650 in secured debt. These amounts change periodically, and an 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.
Our attorneys will work with you to implement a repayment plan under Chapter 13, whereby you pay your debts back over a period of three to five years. Payment under the plan comes directly out of your income and goes to the bankruptcy trustee, who will then distribute it to creditors.
Unlike a Chapter 11 repayment plan, which creditors must approve, the court will approve a Chapter 13 repayment plan if it meets certain statutory requirements. Generally, the plan must promise creditors at least as much payment as they would have attained had the case been filed under Chapter 7, and the debtor must agree to devote all of his or her disposable income over the three to five year period of the repayment plan.
Once you have made all of the payments required under your repayment plan, you will receive a discharge order, officially wiping out all dischargeable debts and preventing creditors from further attempts to collect.
For additional information about Chapter 13 bankruptcies, please see our Chapter 13 frequently asked questions page.