Fort Worth Chapter 13 Attorneys
Trustworthy Legal Counsel
Chapter 13 bankruptcy is a difficult decision to make, and most people do not even know where to begin when their debt becomes so unmanageable. Having a working knowledge of the process for filing Chapter 13 demystifies a lot of things for those considering it and can help people make more informed choices. An experienced debt settlement attorney can make a huge difference for people with overwhelming financial troubles.
Having aggressive and experienced Chapter 13 lawyers in Fort Worth on your side is important because both filings require a great attention to detail, organizing, planning, and paperwork. Life is stressful enough without the burden of navigating the process yourself. Here at Alice Bower, Attorney at Law, we know the filing process inside and out and have worked with many of the trustees in this district to establish positive, professional working relationships.
Contact us now at (817) 241-5552 so we can help when your bills are piling up and you are exhausted from receiving notices and phone calls from debt collectors.
Chapter 13 Bankruptcy Eligibility
The biggest question for people considering Chapter 13 bankruptcy is whether or not they qualify. Because debts will have to be paid back to creditors, a bankruptcy court must determine that the debtor has adequate income to make whatever payment arrangements that are put in place. To qualify, your income must be over the state median income – in other words, you have the ability to repay your debt.
In general, to qualify for Chapter 13 you must make sure that:
- Any secured debt is less than approximately $1 million
- Any unsecured debt is less than approximately $350,000
The Process of Filing for Chapter 13
When you are filing for Chapter 13, there is a list of steps that must be fulfilled in order for your request to be granted.
These 4 primary steps include:
- Filling out Federal Form 22A, commonly known as the “Means Test,” will determine whether you qualify for Chapter 13 or Chapter 7 protection (this is not necessary if your debts are primarily business related)
- Having your attorney electronically submit your 22A, your bankruptcy petition, schedules (lists), and statements (answers to specific questions) to the bankruptcy court clerk’s office
- Filing a reorganization plan, which is one of the main differences between Chapter 13 and Chapter 7 bankruptcy
- Completing a Financial Management Course, which has a fee of approximately $300, although it is possible to receive a waiver due to financial hardship
The repayment schedule for Chapter 13 bankruptcy filings has a large impact on whether or not your filing will be accepted. You will have to fill out all of the required paperwork. Information that goes into these forms includes all your secured and unsecured debts, the names of creditors and exact amounts owed to each, income and tax information, and your proposed payments to each creditor. The latter is almost always a reduced monthly payment that will adequately pay off the debt over the extended time frame of 3 to 5 years.
There are also prioritized debts that must be paid in full, and these include things like alimony, outstanding taxes, and child support. Moreover, if you own a business and have employees to pay, wages cannot be compromised as part of a Chapter 13 bankruptcy filing.
Obtaining Trustworthy Legal Aid Immediately
Chapter 13 bankruptcies take more time to complete than a Chapter 7 filing. It takes at least 36 months (3 years) for a person whose income falls below the state median, and at least 60 months (5 years) for someone whose income is above the median. This is why you need to get in touch with our Chapter 13 attorneys in Fort Worth as soon as possible to negotiate on your behalf throughout the lengthy process.
We are so thankful and greatful we came to Alice for our bankruptcy.- Aurelio S.
Alice and her team are absolutely amazing!- Yessenia C.
Highly Highly Recommend Alice Bower's office to any person who needs help.- Sanjay A.
This whole office cares for their clients- Tracy P.
I highly recommend her services- Abram C.