Chapter 13 bankruptcy is reorganization specifically designed for individuals whose debts are no greater than $1,395,875 for secured debts and $465,275 for unsecured debts, and is the second most common form of bankruptcy filed in the United States. Under this chapter, debtors propose a repayment plan to make installments to creditors over a period of three to five years. Following such period, individuals are provided with an opportunity for a fresh start without the financial hardship of the overwhelming debt.
A Chapter 13 is a very powerful tool as it offers individual debtors a number of advantages over a Chapter 7 liquidation. The most significant of these advantages is that it provides the individual debtor with the opportunity to save their home from foreclosure. By filing under this chapter, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over a period of time; however, it is worth noting that all mortgage payments that come due during the course of the Chapter 13 bankruptcy proceeding must be paid on time, when they come due. Another benefit of a Chapter 13 is that it allows individuals to reschedule secured debts (other than a mortgage for their primary residence), which are typically classified as debts for which the creditor has the right to take back certain property, or collateral, if the debtor does not pay the underlying debt, and extend them over the life of the Chapter 13 plan, which typically results in lower payments. Other advantages of a Chapter 13 bankruptcy proceeding include a special provision that may protect co-signers of a consumer debt, which is primarily classified as being for a debt for a personal, family or household purpose. And, lastly, a Chapter 13 bankruptcy is designed to require the debtor to make payments to the Chapter 13 Trustee, who then distributes payments to creditors, such that the individual debtor will have no direct contact with creditors.
It is important to note that, exempt and non-exempt property, and secured and unsecured debt, is governed by the U.S. Bankruptcy Code which can be confusing and difficult to decipher on your own, so although we can generally guide you with the resources available on this page, we encourage and recommend that you speak with your local, Houston attorneys at Tran Singh LLP experienced in Chapter 13 bankruptcies to go over the particular details of your situation.
A Chapter 13 bankruptcy proceeding begins when the debtor files a petition with the bankruptcy court serving the area where the individual lives or where the business debtor is organized or has its principal place of business or principal assets. Customarily, your case will be held at the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, which is located in Downtown Houston and serves the following counties: Austin, Brazos, Colorado, Fayette, Fort Bend, Grimes, Harris, Madison, Montgomery, San Jacinto, Walker, Waller and Wharton. The filing fee that the courts must charge for a Chapter 13 bankruptcy is $313 consisting of a $235 case filing fee and a $78 miscellaneous administrative fee, which must be paid to the clerk of court upon filing. However, under certain circumstances, with the court’s permission, individual debtors may pay the filing fee in four (4) installments over a period of not more than 120 days after filing of the Chapter 13 bankruptcy petition.
After filing a Chapter 13 bankruptcy petition, a Chapter 13 Trustee is appointed to administer the case and he or she evaluates the case and serves as the disbursing agent, collecting payments from the debtor and distributing those payments to creditors.
Filing a Chapter 13 bankruptcy petition automatically stays, or stops, most collection actions against a debtor or the debtor’s property and creditors generally may not initiate or continue lawsuits, wage garnishments or even telephone calls demanding payments. The clerk for the bankruptcy court gives notice of the Chapter 13 bankruptcy proceeding to all creditors whose names and addresses are provided by the debtor. Essentially, this means that creditors cannot seek payment during the process and must stop all collection activities. Chapter 13 also contains a special automatic stay provision that protects co-debtors and creditors generally may not seek to collect a consumer debt from any individual liable with the debtor.
Following the filing of your Chapter 13 bankruptcy petition, there are several requirements that must be met, failure to do so may result in the dismissal of your case, including attending a meeting of creditors with the Chapter 13 Trustee assigned to your case, which is typically held 25-45 days after filing the Chapter 13 bankruptcy petition, and commonly referred to as a 341 Meeting. During this meeting the debtor will answer questions regarding his or her financial affairs and the proposed terms of the Chapter 13 plan, which was filed either with the original Chapter 13 bankruptcy petition, or within 14 days thereafter. A Chapter 13 plan must provide for payments of fixed amounts to the Chapter 13 Trustee on a regular basis (generally biweekly or monthly) and must be approved by the court at a confirmation hearing.
Once a Chapter 13 plan is confirmed, it is considered binding on the debtor and each creditor. The debtor must make regular payments in accordance with the terms of the Chapter 13 plan to the Chapter 13 Trustee, and can be made directly or through payroll deduction, which increases the likelihood that payments will be made timely and the debtor will complete the plan. A Chapter 13 debtor is entitled to discharge upon completion of various requirements in accordance with the U.S. Bankruptcy Code, and upon meeting such obligations, the discharge releases the debtor from all debts provided for by the Chapter 13 plan (or disallowed in accordance with the U.S. Bankruptcy Code), with limited exceptions.
If you are facing imminent foreclosure and/or overwhelmed by the overwhelming stress and burden of financial difficulties, the answer may be a Chapter 13 bankruptcy to maintain your homestead while restructuring your debt obligations, depending on the particular facts and circumstances of your situation. We encourage you to reach out to your local, Houston bankruptcy attorneys at Tran Singh LLP, who have experience in Chapter 13 cases and are equipped to seamlessly guide you through the process including taking all of the necessary steps and meeting all of the requirements to achieve a successful Chapter 13 case and advise you on the path to achieve your goals.
A Chapter 13 is a very powerful tool as it offers individual debtors a number of advantages over a Chapter 7 liquidation. The most significant of these advantages is that it provides the individual debtor with the opportunity to save their home from foreclosure. By filing under this chapter, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over a period of time; however, it is worth noting that all mortgage payments that come due during the course of the Chapter 13 bankruptcy proceeding must be paid on time, when they come due. Another benefit of a Chapter 13 is that it allows individuals to reschedule secured debts (other than a mortgage for their primary residence), which are typically classified as debts for which the creditor has the right to take back certain property, or collateral, if the debtor does not pay the underlying debt, and extend them over the life of the Chapter 13 plan, which typically results in lower payments. Other advantages of a Chapter 13 bankruptcy proceeding include a special provision that may protect co-signers of a consumer debt, which is primarily classified as being for a debt for a personal, family or household purpose. And, lastly, a Chapter 13 bankruptcy is designed to require the debtor to make payments to the Chapter 13 Trustee, who then distributes payments to creditors, such that the individual debtor will have no direct contact with creditors.
It is important to note that, exempt and non-exempt property, and secured and unsecured debt, is governed by the U.S. Bankruptcy Code which can be confusing and difficult to decipher on your own, so although we can generally guide you with the resources available on this page, we encourage and recommend that you speak with your local, Houston attorneys at Tran Singh LLP experienced in Chapter 13 bankruptcies to go over the particular details of your situation.
A Chapter 13 bankruptcy proceeding begins when the debtor files a petition with the bankruptcy court serving the area where the individual lives or where the business debtor is organized or has its principal place of business or principal assets. Customarily, your case will be held at the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, which is located in Downtown Houston and serves the following counties: Austin, Brazos, Colorado, Fayette, Fort Bend, Grimes, Harris, Madison, Montgomery, San Jacinto, Walker, Waller and Wharton. The filing fee that the courts must charge for a Chapter 13 bankruptcy is $313 consisting of a $235 case filing fee and a $78 miscellaneous administrative fee, which must be paid to the clerk of court upon filing. However, under certain circumstances, with the court’s permission, individual debtors may pay the filing fee in four (4) installments over a period of not more than 120 days after filing of the Chapter 13 bankruptcy petition.
After filing a Chapter 13 bankruptcy petition, a Chapter 13 Trustee is appointed to administer the case and he or she evaluates the case and serves as the disbursing agent, collecting payments from the debtor and distributing those payments to creditors.
Filing a Chapter 13 bankruptcy petition automatically stays, or stops, most collection actions against a debtor or the debtor’s property and creditors generally may not initiate or continue lawsuits, wage garnishments or even telephone calls demanding payments. The clerk for the bankruptcy court gives notice of the Chapter 13 bankruptcy proceeding to all creditors whose names and addresses are provided by the debtor. Essentially, this means that creditors cannot seek payment during the process and must stop all collection activities. Chapter 13 also contains a special automatic stay provision that protects co-debtors and creditors generally may not seek to collect a consumer debt from any individual liable with the debtor.
Following the filing of your Chapter 13 bankruptcy petition, there are several requirements that must be met, failure to do so may result in the dismissal of your case, including attending a meeting of creditors with the Chapter 13 Trustee assigned to your case, which is typically held 25-45 days after filing the Chapter 13 bankruptcy petition, and commonly referred to as a 341 Meeting. During this meeting the debtor will answer questions regarding his or her financial affairs and the proposed terms of the Chapter 13 plan, which was filed either with the original Chapter 13 bankruptcy petition, or within 14 days thereafter. A Chapter 13 plan must provide for payments of fixed amounts to the Chapter 13 Trustee on a regular basis (generally biweekly or monthly) and must be approved by the court at a confirmation hearing.
Once a Chapter 13 plan is confirmed, it is considered binding on the debtor and each creditor. The debtor must make regular payments in accordance with the terms of the Chapter 13 plan to the Chapter 13 Trustee, and can be made directly or through payroll deduction, which increases the likelihood that payments will be made timely and the debtor will complete the plan. A Chapter 13 debtor is entitled to discharge upon completion of various requirements in accordance with the U.S. Bankruptcy Code, and upon meeting such obligations, the discharge releases the debtor from all debts provided for by the Chapter 13 plan (or disallowed in accordance with the U.S. Bankruptcy Code), with limited exceptions.
If you are facing imminent foreclosure and/or overwhelmed by the overwhelming stress and burden of financial difficulties, the answer may be a Chapter 13 bankruptcy to maintain your homestead while restructuring your debt obligations, depending on the particular facts and circumstances of your situation. We encourage you to reach out to your local, Houston bankruptcy attorneys at Tran Singh LLP, who have experience in Chapter 13 cases and are equipped to seamlessly guide you through the process including taking all of the necessary steps and meeting all of the requirements to achieve a successful Chapter 13 case and advise you on the path to achieve your goals.
Questions?
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Ready to take the next step toward financial freedom, click below to be directed to our Initial Consultation Form.
Have you scheduled an initial consultation with us, or completed the Initial Consultation Form?
Click below to navigate to the Consumer Bankruptcy Consultation Checklist, a guide prepared with you in mind, and summarizes the information and documentation you will need to provide for your case.
Click below to navigate to the Consumer Bankruptcy Consultation Checklist, a guide prepared with you in mind, and summarizes the information and documentation you will need to provide for your case.
Are you an existing Chapter13 Client of Tran Singh LLP?
We encourage you to discover the valuable resources available to you by navigating to the pages through the links provided below.
We encourage you to discover the valuable resources available to you by navigating to the pages through the links provided below.
TRAN SINGH LLP
2502 La Branch Street | Houston, Texas 77004 | Phone: (832) 975-7300 | Fax: (832) 975-7301 | Email: [email protected]
DISCLAIMER AND LEGAL NOTICE
We are a debt relief agency. We help people file for relief under the Bankruptcy Code.
2502 La Branch Street | Houston, Texas 77004 | Phone: (832) 975-7300 | Fax: (832) 975-7301 | Email: [email protected]
DISCLAIMER AND LEGAL NOTICE
We are a debt relief agency. We help people file for relief under the Bankruptcy Code.