Chapter 13 Bankruptcy

If you are considering filing for bankruptcy in Houston you may need a Houston Bankruptcy attorney.

Houston bankruptcy attorney Vicky Fealy, has advised Houston Texas consumers regarding bankruptcy laws including chapter 13 bankruptcy, stop foreclosure, stop repossession, debt consolidation, debt reorganization, debtors discharge, IRS problems, means testing, liquidation, unsecured debt, secured debt, creditor harassment, and discharges for more than 18 years.

This is no time to choose an attorney who occasionally dabbles with Bankruptcy cases and doesn't understand Texas bankruptcy law as relates to liquidation, unsecured debt, secured debt, creditor harassment, discharges; Texas median income means testing and your choices between federal or state exemptions.

Houston Bankruptcy attorney Vicky Fealy has devoted her entire legal career exclusively to practicing bankruptcy law and is one of a limited number of Texas Board Certified Consumer Bankruptcy attorneys in Houston.

Chapter 13 is often referred to as a wage earner plan or debt consolidation. Chapter 13 is often utilized to stop repossessions and foreclosures, but can also effectively reorganize your debt load by lumping all of your monthly bills into one monthly payment.

Chapter 13 is a valuable tool for consumers who have fallen behind on mortgage or car payments, as it allows you time to catch up delinquencies and immediately stops foreclosures and repossessions. Chapter 13 is also valuable to consumers wishing to consolidate their bills or who are facing difficulties with the IRS.

Chapter 13 permits you to keep your property by repaying creditors out of your future income. After completion of your payments under the plan, Chapter 13 debtors receive a discharge of most debts.

THE TEXAS DIFFERENCE

Unlike most other states, the state of Texas gives Chapter 7 bankruptcy filers a generous homestead exemption. A home is the most valuable asset most people own, so the fact that Texas lets virtually anyone filing for Chapter 7 keep their homes may make Texas residents less likely to opt for Chapter 13. A debtor can choose to file for Chapter 13, but the federal bankruptcy code requires that debtors qualify for Chapter 7 bankruptcy.

A debtor qualifies for Chapter 7 bankruptcy by passing the means test. Means testing compares the debtor's family income to the Texas median family income. The median family income of Texas has been listed as: single earner, $38,801; family of two, $55,660; family of three, $59,011 and family of four, $66,145. Add $7,500 for each family member in excess of four. If the debtor's family income is less than the state median, the debtor can file for Chapter 7 bankruptcy. If the debtor's family income is more the state median, the debtor needs to calculate his disposable income.

The debtor's monthly disposable income is calculated by subtracting the debtor's allowed monthly expenses from the debtor's monthly income. If his monthly disposable income is less than $100, he can file for Chapter 7. If his monthly disposable income is over $100, but would not be enough to pay at least 25 percent of his debts over the next 60 months, the debtor can file for Chapter 7.

The debtor must file for Chapter 13 bankruptcy when he fails the Chapter 7 means test and his disposable income will be paid to his creditors. In a Chapter 13 bankruptcy case, a debtor repays his debt over a span of three to five years. The means test determines the length of time the debtor will spend repaying his debts. If the debtor's income is below the Texas state median income, the debtor's repayment plan will span three years. If the debtor's income is above the Texas state median income, the debtor's repayment plan will span five years.

The debtor must propose a repayment plan when filing or within 15 days of filing the Chapter 13 petition. The court must confirm this plan.

Here is the list of counties we serve: Harris, Fort Bend, Brazoria, Montgomery, Chambers, Galveston, Matagorda, Colorado, Wharton, Fayette, Austin, Waller, Brazoria, Grimes, Madison, Walker and San Jacinto.

If you or your business in Texas needs the assistance of an experienced Houston Bankruptcy Attorney, call The Fealy Law Firm, P.C. today at 866-751-1087, or complete the contact form provided on this site to schedule your free consultation

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