Filing A Chapter 13 Bankruptcy In Texas
The following article will cover:
- Chapter 13 Bankruptcy: Explaining the concept of Chapter 13 bankruptcy as a method of debt consolidation, including the repayment plan and the role of a trustee appointed by the court.
- Dischargeable Debt in Chapter 13 Bankruptcy: Discussing the types of debt that can be discharged in Chapter 13 bankruptcy, focusing on unsecured debts such as credit cards, unsecured loans, and medical bills.
- Asset Protection in Chapter 13 Bankruptcy: Exploring the assets that individuals can typically retain in Chapter 13 bankruptcy.
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy refers to a method of debt consolidation. In this arrangement, you propose a plan intending to repay some or all of your debts from your future income. It is essential to note that in Chapter 13 bankruptcy, you typically do not pay your creditors directly. Instead, you make payments to a trustee appointed by the bankruptcy court. This trustee then disburses funds to your creditors over a three to five-year period.
What Type Of Debt Is Discharged In Chapter 13 Bankruptcy?
Generally, the kinds of debt that are dischargeable in Chapter 13 bankruptcy parallel those in Chapter 7. Consequently, most unsecured debts are eligible for discharge. This list often includes:
- Credit cards
- Unsecured loans
- Medical bills
These debts, among others, can typically be discharged in a Chapter 13 bankruptcy.
What Assets Will I Be Able To Keep In Chapter 13?
In a Chapter 13 bankruptcy, you are typically allowed to retain assets that are exempt under Texas state law or federal bankruptcy law. Commonly exempted assets include:
- Your home
- Your automobiles
- Household furnishings and appliances
- Clothing and jewelry
- Retirement plans
These assets are protected from liquidation in Chapter 13 bankruptcy, which is distinct from Chapter 7 bankruptcy in this regard.
Will I Lose Anything In A Chapter 13 Bankruptcy?
Chapter 13 bankruptcy typically allows for the retention of assets, with few exceptions. The determining factor often rests on your disposable income. The majority of individuals undergoing Chapter 13 bankruptcy do not lose any assets, but this can vary based on individual circumstances.
How Long Does A Chapter 13 Bankruptcy Take To Complete?
The timeframe for a Chapter 13 bankruptcy case generally extends up to five years. In most scenarios, the minimum duration is three years. However, this period can be reduced if you, as the debtor, are able to repay all your debts in full within a shorter time frame. For more information on Filing A Chapter 13 Bankruptcy In Texas, an initial consultation is your next best step.