Filing for Chapter 13 Bankruptcy in Williamson County

It is wise to know all your bankruptcy options before you file. There are also various laws governing bankruptcy in Cedar Park and Round Rock, which should inform the process of filing.

In most cases, people might find themselves filing for bankruptcy when they don’t really need it. There are different classes of people who file for bankruptcy. Some of them qualify for debt relief, while others have to file bankruptcy under other Texas state laws, such as chapter 7 bankruptcy.

Components of Chapter 13 Bankruptcy

This type of bankruptcy is most suited for individuals who are earning a stable source of income and are facing a foreclosure or have massive credit card debt. If you are tired of your credit card company calling you non-stop, or if you’re just about to lose your home, then this bankruptcy is suitable for you.

This type of bankruptcy is very popular in Texas. Your debt is spread over a 3 to 5 year period, and you don’t have to lose your car or home in the bankruptcy process.

Keep on reading to find out if you qualify. Better yet, call us at The Jackson Law Firm for a consultation and better insight into your financial situation.

Do You Qualify?

The following are the provisions that must be met for you to qualify:

• If you have received a previous chapter 7 discharge in the past 8 years or a previous chapter 13 discharge in the past few 6 years, then you are not allowed to file for bankruptcy. This means that if you have been barred from charging either one of these bankruptcies within the specified time periods, then you cannot file unless the time has lapsed.
• You can only file for bankruptcy as an individual or jointly as a couple. If you’re married, then you cannot file as an individual. You may file as a small business owner, and business debts are included in your new debt plan.
• Your income tax filings should be up-to-date for the past four years.
• Your total debts should not exceed $1,010,650.00.This is the statutory limit for the state of Texas. This amount changes every three years.
• If you filed for bankruptcy in the past 180 days and it was rejected, then you cannot file for bankruptcy until those 180 days are up. There are several reasons why your bankruptcy application could be dismissed. It might be considered fraudulent, or it could be that you failed to comply with a court order.
• A prerequisite bankruptcy credit counseling course is mandatory for anyone seeking to file for bankruptcy in the state of Texas. If you do not take the course, then you are prohibited from filing for bankruptcy.

These are just some of the bankruptcy stipulations, a consultation with The Jackson Law Firm will shed more light on what applies in your case. There are also bankruptcy exemptions that you need to consider before you file under any of the chapters.

Individuals filing for bankruptcy under this chapter should have a stable source of income. This income could come from either of the following: self-employment, child support or alimony, royalties, property sale proceeds, trust benefits or retirement income, social welfare income, unemployment or strike benefits, commissions from sales income, income from seasonal or temporary employment, and your spouse’s employment income.

Your disposable income should be enough to pay for the new restructured monthly amounts. You can calculate disposable income by subtracting your living expenses from your net income. Don’t worry if this seems daunting because that’s our job: we are there to make sure you don’t have to deal with difficult calculations.

Why Is This Type Of Bankruptcy More Preferred?

You get to keep all your secured assets under this plan. If you are a little late on your mortgage payments, don’t be worried that your home could be taken away from you. This plan is simply a reorganization as opposed to the liquidation that chapter 7 entails.

You can get your monthly payments reduced under this premium. Under chapter 7 bankruptcy all of your payments are written off, but your record is permanently ruined.

You are protected against debtor collections under this type of bankruptcy. You are also allowed to classify your debtors, giving each of them a percentage of their pay. It is important that you have experienced bankruptcy attorneys who can advise you further on this.

You can file for this type of this type of bankruptcy severally.

The repayment period is longer giving you a chance to pay off some debts that cannot be discharged under any Texas bankruptcy laws.

Filing for bankruptcy can be an onerous task, one that is made easier by the right attorney. Call The Jackson Law Firm for a smoother process and a better understanding of your options.