As Dallas Bankruptcy Attorneys many individuals ask us, what exactly is Chapter 13 Bankruptcy? Chapter 13 is really a proceeding within the Federal Bankruptcy laws where a person turns his debts, in concert with a plan for repaying them, over to the Bankruptcy Court.
The debtor (you) will make regular installment payments to a person known as the Chapter 13 Trustee. The Trustee gathers the installment payments and pays required creditors in the manner prescribed in the Plan. When the Plan is in place, the court puts into effect an Automatic Stay which prevents collection efforts from all creditors.
Chapter 13 bankruptcy usually provides a solution for people who have faced short-term financial difficulties like job loss, illness, or large unforeseen expenses. Chapter 13 may work for you if you have encountered an unexpected crisis that has caused you to get behind on bills, but still have regular income and can make regular monthly payments. Chapter 13 might be what you need to obtain the space to get yourself together again financially.
Chapter 13 includes the Automatic Stay, with the ability to get caught up overdue payments over a period of three to five years after filing bankruptcy while keeping current payments current. Many people looking to stop foreclosure or avoid repossession select Chapter 13 for this reason.
Could Chapter 13 bankruptcy aid you? We at The Wright Firm highly recommend you speak to a local bankruptcy attorney to evaluate your alternatives. You can reach the attorneys at The Wright Firm, L.L.P. at 972-353-4600 or www.thewrightlawyers.com
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