Chapter 13 Bankruptcy Guidance in Houston
35+ Years Helping Houston Families Protect Their Homes & Rebuild
Chapter 13 bankruptcy is a court-approved repayment plan lasting three to five years, designed for people with regular income who need structured relief from debt without giving up what they own. Because plan length depends on your annual income relative to the state median, an attorney can tell you quickly which track applies to your situation. Chapter 13 is sometimes called the wage earner’s plan, and for good reason: it gives working Houstonians a realistic path forward. Reach out today to talk through your options at no cost.
Bankruptcy conjures images of empty homes and sold-off belongings, but that’s largely the story of liquidation. Chapter 7 works well for many people, but it isn’t the right fit for everyone. If you have steady income, property worth protecting, or mortgage arrears you need time to catch up on, Chapter 13 may be the better path. Guzman Law Firm has guided Houston-area clients through that process for over 35 years.
Filing under Chapter 13 triggers the automatic stay the moment your petition is filed, immediately stopping any active foreclosure proceedings, wage garnishment, repossession, and creditor collection calls. Delinquent payments on secured debts, including your home and vehicle, can be folded into the plan and repaid over its term. You may keep your property, and your debt can become one manageable monthly payment.
Why Houston Clients Choose Guzman Law Firm
- Over 35 years of bankruptcy experience
- Working relationships with Houston bankruptcy judges, trustees, and creditor bar representatives
- Handles both straightforward and complex Chapter 13 cases
- Evaluates non-bankruptcy remedies before recommending filing
- Payment plans for attorney fees
- Free case consultations
- Five office locations for your convenience
- After-hours and Saturday appointments available
- Hablamos Español
Contact us for a free consultation with a Houston Chapter 13 bankruptcy attorney. Call (713) 338-9009 today.
Qualifying for Chapter 13 Bankruptcy in Texas
Chapter 13 gives you breathing room by reorganizing your debt into a single monthly payment over three to five years. It’s available only to individuals, not businesses. If you run a small business, separate options exist worth exploring.
Key Eligibility Requirements
- Regular income sufficient to cover your proposed monthly plan payment
- No more than $1,580,125 in secured debts (including your mortgage)
- No more than $526,700 in unsecured debts (credit cards, student loans, etc.)
- Completion of an approved credit counseling course within 180 days before filing, as required by 11 U.S.C. 109(h) and the Southern District of Texas
- Current on all required tax filings
During the plan period, all secured debts must stay current. When you complete the plan, any remaining eligible unsecured balances may be discharged. Spreading repayment over the plan term can lower your monthly obligation and make staying on track more realistic.
What Chapter 13 Bankruptcy Can Do for You
For Houston residents facing foreclosure, garnished wages, or debt that feels impossible to manage, Chapter 13 offers concrete protections from the moment you file. Here’s what the process can provide.
- A Single, Manageable Monthly Payment: Chapter 13 consolidates your debts into one plan payment covering three to five years. Our Houston Chapter 13 bankruptcy attorneys build each plan around your specific income and expenses so the monthly amount is realistic from day one, including catching up on mortgage or car arrears.
- Foreclosure Protection: Filing immediately triggers the automatic stay, halting active foreclosure proceedings. The plan then lets you cure missed mortgage payments over time, giving you an opportunity to save your home if you stay current on plan payments.
- Wage Garnishment Relief: The automatic stay generally requires any active wage garnishment to stop the moment your petition is filed, putting money back in your paycheck while your case proceeds.
- Protection from Creditor Harassment: Once you file, the automatic stay can prohibit creditors from contacting you or taking further legal action against you. The calls can stop. The lawsuits can pause. You get the space to work through your situation.
- Debt Discharge at Completion: After you successfully complete your repayment plan, remaining eligible unsecured debts can be discharged, giving you a foundation to rebuild your credit.
- Keep Non-Exempt Assets: Unlike Chapter 7, Chapter 13 lets you retain non-exempt assets by paying their value through the plan rather than surrendering them. If you have property worth protecting, this distinction matters.
Our established relationships with Houston bankruptcy trustees and creditor bar representatives support the plan negotiation and confirmation process on your behalf. And because financial emergencies don’t follow a 9-to-5 schedule, we offer after-hours and Saturday appointments so you can get answers when you need them. Contact us to schedule a free consultation.
What Does Chapter 13 Bankruptcy Cost in Texas?
The total cost of filing for Chapter 13 depends on your case’s complexity and your attorney’s fees. Here are the main components to understand before you file.
- Court Filing Fee: The filing fee for Chapter 13 in the Southern District of Texas is $313, paid to the bankruptcy court when you submit your petition. If you qualify, the court may allow you to pay this fee in installments.
- Attorney Fees: Having experienced legal representation in a Chapter 13 case is strongly recommended. An attorney builds your repayment plan, negotiates with creditors, represents you in court, and responds to any objections during confirmation. We offer payment plans for attorney fees so cost isn’t a barrier to getting started.
- Credit Counseling and Debtor Education Courses: Federal law requires you to complete an approved credit counseling course before filing and a debtor education course before discharge. These courses are offered by approved agencies and typically cost $20 to $50 each, though fee waivers may be available if you can’t afford the cost.
Every Chapter 13 case is different. During a free consultation with an attorney at Guzman Law Firm, you can discuss your specific financial situation and get a clear picture of what filing will cost in your circumstances.
The 341 Meeting & Plan Confirmation: What to Expect After Filing
After your Chapter 13 petition is filed with the Houston division of the Southern District of Texas Bankruptcy Court, the court schedules a 341 meeting of creditors, typically within 21 to 50 days. At this meeting, you’ll answer questions from the Chapter 13 trustee under oath. Creditors are notified and may attend, though they rarely do in consumer cases. Our attorneys are with you at the 341 meeting so you don’t walk in unprepared.
The trustee’s role continues well past the 341 meeting. They review your proposed repayment plan to determine whether it meets the requirements of the Bankruptcy Code, then disburse payments to creditors throughout the plan period. Plan confirmation requires court approval, and creditors may raise objections. Our working relationships with Houston trustees and creditor bar representatives mean we come to each confirmation hearing prepared, with the context that comes from years of practice in this court. If objections arise, we respond and work to keep your plan moving forward.
Ready to take the first step? Schedule a free consultation with a Houston Chapter 13 bankruptcy attorney at Guzman Law Firm. Contact us online or call (713) 338-9009 today.
What Sets Us Apart
-
35+ Years Of Legal & Bankruptcy Experience
-
After-Hours & Saturday Appointments Available
-
We're a Spanish-Speaking Team
-
We Provide Free Consultations
-
Start with a Virtual Consult
-
Convenient Payment Plans
