Chapter 13 bankruptcy is very different from a bankruptcy under Chapter 7. When you file for bankruptcy under Chapter 7, your non-exempt assets are liquidated in order to pay off a portion of your debts, and then your remaining debts will be wiped clean (with some important exceptions). In Chapter 13 bankruptcy, you restructure your debts and make a plan to pay over time. If you make your payments as scheduled, a certain amount of your debt may be forgiven at the end of your payment plan. For this reason, Chapter 13 bankruptcy is commonly known as a “wage earner’s plan,” while a filing under Chapter 7 is referred to as a “liquidation” bankruptcy.
If you are earning a stable income but your debts have become unmanageable, filing for bankruptcy under Chapter 13 may be your best option. However, filing for any type of bankruptcy can have serious and long-term financial implications. As a result, before you decide to file, you should discuss your options with an experienced bankruptcy attorney.
The Law Office of Rebecca Moughon is a New Leaf Bankruptcy law firm that represents individuals and couples throughout the Houston area. With offices located in The Woodlands, the firm serves clients in Kingwood, Conroe, North Houston, Spring, Tomball and the surrounding areas. If you are struggling financially and are thinking about bankruptcy, Attorney Rebecca Moughon can help you make informed decisions with a long-term perspective. If bankruptcy is right for you, she can help you choose between Chapter 7 and Chapter 13, and she can help you complete the process as quickly and painlessly as possible.
In order to be eligible to file under Chapter 13, you must meet certain requirements. For example, you must have completed an approved debt counseling program within the past 180 days, and you must not have had debts discharged in a previous Chapter 13 bankruptcy within the past two years.
Other eligibility requirements include:
While most types of debts can be reorganized under Chapter 13 (meaning that you can structure a payment plan that makes it easier to pay your monthly bills), not all debts are eligible to be discharged at the end of a Chapter 13 bankruptcy.
For example, Chapter 13 bankruptcy will not eliminate:
If you would like more information about the eligibility requirements and potential benefits of Chapter 13 bankruptcy, we encourage you to contact us for a free consultation. To speak with Attorney Rebecca Moughon about your situation in confidence, please call (832) 653-9371 or request an appointment online today.
If you have questions about bankruptcy, your first step is to schedule a free initial consultation. Whether you need help understanding the bankruptcy process or are ready to file and need to decide between Chapter 7 and Chapter 13, Attorney Rebecca will make sure you understand the steps that follow. Located in The Woodlands, we serve clients in Kingwood, Spring, Tomball, Conroe, North Houston and throughout the greater Houston metropolitan area. Regardless of your current circumstances, you deserve the guidance necessary to make informed decisions, and Attorney Rebecca will make sure you clearly understand all of the options you have available.
For more information about filing for bankruptcy, please contact us to arrange a free, no-obligation consultation with Attorney Rebecca M. Moughon.
To schedule an appointment at your convenience, please call (832) 653-9371 or request an appointment online today.
Don’t wait another minute. Set up an appointment for a consultation today.