Chapter 13 Bankruptcy Guidance in Houston

Over 35 Years of Bankruptcy Experience in Houston

Understanding Chapter 13 Bankruptcy

Simply put, Chapter 13 bankruptcy is a repayment plan which may range anywhere from three to five years in length. The amount of time that a repayment plan is set for will be dependent on the person's annual income. Let our Houston Chapter 13 bankruptcy attorney help you file, reach out today!

Contact Us for a No-Cost Consultation with a Houston Bankruptcy Lawyer.

Bankruptcy calls to mind images of empty homes and selling cars, furniture, and valuable belongings to pay off debts. While Chapter 7 bankruptcy (or liquidation bankruptcy) might be a great option for some people, it may not be acceptable for others. If this is the case for you, then consider filing for Chapter 13 bankruptcy in Houston with the Guzman Law Firm.

By filing under Chapter 13, you’ll be able to stop any foreclosure proceedings and reorganize your debts into one regular monthly payment. Any delinquent payments for secured debts (homes, cars, leased equipment) can also be included in the payment plan and can reschedule your repayment over the course of the plan. The most important benefit of Chapter 13 bankruptcy is that you’ll be able to keep your home—there’s no need to liquidate your assets or pay off debts quickly.

Qualifying for Chapter 13 Bankruptcy in Texas

In Texas, Chapter 13 bankruptcy is available to individuals who meet certain eligibility criteria. Chapter 13 is not available for businesses.

Chapter 13 Bankruptcy Eligibility Requirements

The point of filing for Chapter 13 is to provide you with some “breathing room” with regard to your debt. By reorganizing your loans into a 3 or 5-year plan with a single, regular monthly payment, you are able to take back control of your debt and rebuild your credit. Chapter 13 is also known as the “wage earner’s plan” because it is suited for people with a regular income.

However, keep in mind that under Chapter 13, all secured debts must be paid on time during the bankruptcy period. After the 5 year period, the remaining debt may be discharged if not paid back in full. By extending the life of your loans over 5 years, individuals are able to lower their monthly payment and make their debt repayment more manageable.

Local Insights on Chapter 13 Bankruptcy in Houston

Living in Houston, you may face unique financial challenges, from the high cost of living to unexpected medical expenses. The City of Houston offers various resources for residents struggling with debt, including financial counseling services that can help you understand your options. If you're considering Chapter 13 bankruptcy, it's essential to know that this process can provide you with the relief you need to regain control of your finances.

Many Houstonians find themselves overwhelmed by debt due to factors like job loss, rising housing costs, or natural disasters that can disrupt financial stability. The Texas Judicial Branch has specific guidelines for filing Chapter 13 bankruptcy, ensuring that you can reorganize your debts while keeping your home and vehicle. This is particularly important in neighborhoods like Midtown and Montrose, where property values can fluctuate significantly.

Additionally, the Houston government provides support for residents facing foreclosure, which can be a significant concern for many families. By filing for Chapter 13 bankruptcy, you can halt foreclosure proceedings and create a manageable repayment plan that fits your budget. This is especially beneficial for those living in areas with high property taxes, as it allows you to catch up on missed payments without losing your home.