If you're stressed out about debt, you're not alone. In fact, a recent study found that 45% of Americans report feeling anxious about debt at least once a month. Another 20% of those individuals feel physically sick at least once a month thanks to debt fears. This anxiety can be crippling, affecting nearly every aspect of an individual's life.
Many Texans who are struggling with debt make too much to qualify for Chapter 7 bankruptcy. As a result, these individuals may need to turn to Chapter 13 bankruptcy to find debt relief. This type of bankruptcy allows an individual to eliminate some debts after successfully adhering to a payment plan for a specified period of time. But how does a bankruptcy court determine how much a Chapter 13 filer must repay under his or her bankruptcy plan?
Living with debt can feel overwhelming and endless. One may feel like he or she will never find financial relief, but filing for bankruptcy could be the answer. Chapter 13 bankruptcy is centered on a repayment plan that, overtime, seeks to repay creditors as fully as possible. However, many individuals who successfully pursue Chapter 13 have a significant number of debts discharged once their repayment plans are completed. While this is great for a debtor, it can be terrible for creditors. As a result, they often have an interest in the terms of a debtors repayment plan. To ensure that the process and the bankruptcy plan is fair, it must be confirmed by a court of law.
Many Texans work hard to keep a roof over their head. Yet, it doesn't take much for the financial strains to make it challenging to pay bills to maintain that housing. Although Texans who rent can always finish up their lease and move to a cheaper living arrangement, homeowners can't simply walk away from their mortgage without serious financial consequences. As a result, many Texans who fall on hard financial times find themselves struggling to stay current on their mortgage. When they fall several months behind on their payment, they may face foreclosure.
Bankruptcy can be a sound way to resolve debt issues. In the case of a Chapter 7 bankruptcy filing, it can allow a debtor to liquidate assets in exchange for writing off some debt. Chapter 13, on the other hand, allows a debtor to keep his or her assets and shed unsecured debt if a payment plan is adhered to over the course of three to five years. This process isn't automatic, of course, so debtors need to be prepared to take the action needed to meet all of the requirements for a successful bankruptcy process. Let's take a look at the debtor's obligations during the Chapter 13 bankruptcy process.
Bankruptcy can be a very real process through which Texans can obtain relief from overwhelming financial obligations. Whether an individual seeks bankruptcy through Chapter 7 or Chapter 13 of the bankruptcy code, an individual must meet certain federal requirements before relief can be granted. Those who fail to do so can wind up having their bankruptcy petition denied, meaning that they will then be forced to continue to struggle with their financial predicament for some time to come.
Once you have decided to file for bankruptcy in Texas, you will need to file a petition to file for either Chapter 7 or Chapter 13 bankruptcy. Generally, a governmental trustee will be assigned to your case to oversee the bankruptcy process. To have your bankruptcy petition approved by the court, you will need to take the following steps.
Texans who are experiencing problems with debt will frequently consider a variety of alternatives to get on stronger financial ground before considering the potential benefits of bankruptcy. Once they understand that bankruptcy is a perfectly legal and viable solution to improve their financial standing, they are still puzzled by which chapter would be best for their situation. The circumstances will dictate the final decision, but for wage earners, Chapter 13 is frequently considered the ideal option. Understanding why is the key.
If you are struggling to pay back your debts, you may have to deal with bothersome creditors and bill collectors. Additionally, you may be worried about keeping their homes and keeping the lights turned on during this difficult time. Fortunately, bankruptcy may allow you to have some peace of mind due to an automatic stay that kicks in as soon as you file.
Once you have made the difficult decision to file for bankruptcy, you will have to decide which type of bankruptcy you should file. Most individuals will choose between Chapter 7 and Chapter 13 bankruptcy. While the general idea is the same (to eliminate debt), each type of bankruptcy comes with its own pros and cons.