Helping People Through Hard times

Reorganizing Debt With Chapter 13 Bankruptcy 

The Fealy Law Firm, PC, has been helping clients resolve their serious debt issues for more than 25 years. Board-certified bankruptcy attorney Vicky Fealy* strives to educate her clients on all their bankruptcy options so they can make informed decisions about relieving their debts. Popular among those options is Chapter 13.

Chapter 13 is referred to as a “wage earner plan,” “debt reorganization” or “debt consolidation.” Chapter 13 is often utilized to stop repossessions and foreclosures but can also effectively reorganize your debt load by lumping all your monthly bills into one monthly payment. You may find measurable relief with Chapter 13 because it: 

  • Immediately stops foreclosures and repossessions 
  • Is a valuable tool for consumers who have fallen behind on mortgage or car payments, as it allows them time to catch up on delinquencies 
  • Immediately stops levies, judgments, lawsuits and garnishments 
  • Immediately stops harassment and contact from creditors altogether 
  • May allow you to strip a second lien 
  • May allow you to “cram down” the amount owed on certain assets to fair market value 
  • May change the interest rate paid on certain debts 
  • Is a valuable tool for consumers wishing to consolidate their bills at a lower interest rate
  • Helps consumers who are facing difficulties with the IRS 

Benefits Of Chapter 13 Bankruptcy

If you do not qualify for a Chapter 7 bankruptcy, Chapter 13 can be beneficial in restructuring debt to a manageable payment by eliminating or reducing interest. In a Chapter 13, you can propose a plan of reorganization to repay creditors all or a portion of the debt owed. Some debt will be repaid in full and, depending on the circumstances, some creditors may receive only a partial payment of the debt. Some debts are paid with interest and some are not.  

Your repayment plan may last from three to five years, depending on your specific circumstances. It is important to consult an experienced attorney to determine if you qualify for Chapter 13 and to explain how a repayment plan would be fashioned for your specific circumstances. 

Call An Experienced Bankruptcy Attorney Today

Filing a Chapter 13 can be a complicated process and it is important to have a knowledgeable attorney to represent your interests all the way through the discharge of your debts. Ms. Fealy has dedicated her career to helping people get out from under debt since 1992. Call The Fealy Law Firm, PC, today at 713-568-4491 or complete our contact form to schedule your free consultation at her Houston office.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.