Topics Covered:
Mesquite, TX Chapter 13 Bankruptcy & the Reorganization of Your Debts
Non-Dischargeable Debts
Mesquite, TX Bankruptcy & Your Credit
Is a Mesquite (Dallas), TX Chapter 13 Bankruptcy Right For You?
Bankruptcy is a way to wipe the slate clean and give you a fresh start by eliminating as many of your debts as possible. This is either done through liquidation of all debts owed or through the repayment of your creditors based on a schedule that you can handle. The two most common forms of Mesquite, TX bankruptcies are Chapter 7 (liquidation) and Chapter 13 (scheduled repayment/reorganization).
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Chapter 13 Bankruptcy & the Reorganization of Your Debts
With a Chapter 13 bankruptcy, you have the chance to pay back your debts and keep everything that you own at the same time. Unlike Chapter 7 bankruptcy, your high-value assets will not be liquidated or sold to pay off your debt, but you also will not be relieved of those debts. What will happen is that you will be allowed to repay your debts based on a 3 to 5-year payment schedule that fits into your family budget. The court will take your income and expenses into account to ensure that you will still be able to get by. Some of your debts may even be discounted, so that you won’t be responsible for the entire amount. If you cannot repay your debts based on a 3 to 5-year schedule, then you may have to look into Chapter 7 bankruptcy instead.
Chapter 13 Bankruptcy Requirements
There are some requirements that you must meet in order to file for a Mesquite, TX Chapter 13 bankruptcy, including:
- You must be able to repay your debts based on the agreed upon schedule
- Your secured debt must be less than $750,000
- Your unsecured debt must be less than $250,000
- Your total debt must be less than $1,000,000
- You cannot be a stock or commodities broker
Bankruptcy & Your Credit
Although it may not seem fair since you are technically repaying most of your debt, a Mesquite, TX Chapter 13 bankruptcy will still show on your credit report for up to 10 years. This will hinder you from getting any real credit quickly, but you may be able to get a decent line or two to begin the rebuilding process by the time you finish your 3 to 5-year repayment plan. If not, starting with a secured credit card is always a good and viable option.
Understanding the difference between a Mesquite, TX Chapter 7 bankruptcy and a Mesquite, TX Chapter 13 bankruptcy is the first step in your process of becoming debt-free. An experienced Mesquite, TX lawyer can evaluate your situation and help you decide which type is right for you.
At Allmand and Lee, we have experienced bankruptcy attorneys who can help you down this hard road and on toward a better future. Please fill out our free and confidential evaluation form to see how we can help you. We have helped thousands of others resolve their financial crisis and get through this tough situation, and we can help you too.
Topic: Mesquite (Dallas), TX Chapter 13 Bankruptcy Right For You?