Houston Chapter 13 Bankruptcy Lawyer
Kisch Law Firm Counsels Individuals and Couples Seeking Relief
Do you have numerous debts that you cannot afford to pay? If so, you may be unsure what steps you can take to overcome your financial challenges. Unfortunately, debts do not resolve themselves, and you most likely will need legal help to overcome your financial struggles. One of the most effective ways to regain control of your finances is to consult a bankruptcy attorney who can assist you with navigating your overwhelming debt.
Kisch Law Firm, PLLC, is a Houston law firm dedicated to helping clients regain financial freedom. If you are facing a mountain of debt, you must seek legal help from a Houston bankruptcy lawyer who can help you make informed decisions. Contact Kisch Law Firm, PLLC today to schedule a free initial consultation, and we will gladly professionally assess your case.
What is Chapter 13 Bankruptcy?
In a Chapter 13 bankruptcy, you are allowed to pay off your debts in installments over three to five years under a court-ordered repayment plan. Filed individually or jointly with your spouse, Chapter 13 bankruptcy gives you a fresh financial start.
Some debts that chapter 13 is helpful with include mortgages that are behind, car payments that are behind; chapter 13 will allow you to bring these debts current and keep the assets.
However, student loans, child support, or back taxes cannot be discharged under Chapter 13, but they can be paid inside your Chapter 13 plan payment. In a process that somewhat resembles loan consolidation, you make payments to a trustee who distributes the money to your creditors. This allows you to avoid further direct contact with your creditors. Once you have filed for bankruptcy, your creditors must immediately stop collection efforts, including harassing letters and phone calls.
After you have completed the repayment plan, any portion of your unsecured debts, like credit card balances, medical bills, personal loans, and utility bills not paid through your repayment plan will be discharged.
Does Chapter 13 Bankruptcy Allow Consumers to Keep Their Homes?
One of the most common concerns for homeowners who are considering the option of filing for Chapter 13 is whether they can save their home from foreclosure. No one likes the idea of losing their home or other assets. A knowledgeable bankruptcy attorney can help explain how Chapter 13 works and the expected outcomes.
Avoid Home Foreclosure
One of the many advantages of filing for Chapter 13 is that you can save your home from foreclosure. An automatic stay stops foreclosure from progressing as soon as you file your Chapter 13 petition. You are allowed to cure delinquent mortgage payments over a repayment period. Chapter 13 includes the development of a manageable repayment plan that includes a reasonable schedule for bringing your past-due payments current, allowing you to keep your home. Our attorney at Kisch Law Firm has the experience and knowledge with foreclosure matters that are put to use to protect homeowners during the bankruptcy process.
How Does Chapter 13 Help You Lower Your Debts?
Unlike Chapter 7, also called liquidation bankruptcy, which discharges unsecured debts and if necessary selling non-exempt assets,, Chapter 13 allows an individual to regain financial stability by creating an affordable repayment plan that is more affordable. Clients who pursue Chapter 13 bankruptcy cases work with a trustee who oversees the payment plan and distributes payments to creditors.
Lowering debt payments and protecting co-debtors
Chapter 13 bankruptcy allows you to restructure your debts through a court-approved repayment plan, typically lasting three to five years. This plan enables you to catch up on certain debts over time—often with more manageable monthly payments.
Secured debts, such as car loans and mortgage arrears, must be paid in full through the plan. In some cases, you may be able to reduce the interest rate or even the principal balance on car loans, depending on how long you’ve had the loan. Unsecured debts like credit cards and medical bills do not accrue interest during the repayment period and may only be partially repaid, depending on your income and assets.
Who Can File for Chapter 13 Bankruptcy?
Under Federal Bankruptcy Law, anyone who has less than $526,700 in unsecured debts and less than $1,580,125 in secured debts can file for Chapter 13 bankruptcy. Additionally, to qualify, individuals must be able to prove that they have a stable income that will be adequate to make the required monthly payments to the Trustee
Anyone who is considering the option of filing for Chapter 13 must complete an approved credit counseling course within 180 days before they can seek bankruptcy protection. However, there are exceptions for emergencies.
It is essential to remember that corporations or partnerships are not eligible for Chapter 13. Due to the legal complexities involved with filing for Chapter 13, it is in your best interests to speak with a bankruptcy attorney who will determine your legal options. Only an attorney with bankruptcy experience can help you overcome your financial struggles.
Contact Our Experienced Bankruptcy Attorney in Houston, Texas
Kisch Law Firm, PLLC is a Houston bankruptcy law firm committed to helping clients achieve a fresh start. When you come to us for assistance, we will take the time to inform you of your legal options so you can make well-informed choices.
Our highly-trained attorney and staff are ready to assist you with your legal needs, such as filing the paperwork with bankruptcy court, negotiating with creditors, and ensuring that your rights are protected. Our goal is to provide the much-needed relief you seek from filing for bankruptcy.
Our Houston, TX, bankruptcy attorney has a proven record and years of experience in bankruptcy law. Call Kisch Law Firm at 844-417-6343 or contact us online to schedule your bankruptcy consultation at our Houston, Texas, office.