Chapter 13 Bankruptcy in Keller, Texas
Home & Asset Protection
Stop foreclosure and restructure debt with Keller's Chapter 13 specialists
Protect your home, car, and financial future with a structured repayment plan. Machi Wright & Associates has 30+ years of Chapter 13 experience. FREE consultation.
Chapter 13 Bankruptcy in Keller
Chapter 13 bankruptcy offers Keller homeowners and car owners a lifeline when facing foreclosure, repossession, or unmanageable debt. Rather than liquidating assets, Chapter 13 restructures your debts into a court-approved 3-5 year repayment plan, allowing you to keep your home and vehicle while resolving your financial crisis.
If your income is too high for Chapter 7, if you want to save your home from foreclosure, or if you have non-dischargeable debts you need to address, Chapter 13 is often the superior choice. Machi Wright & Associates has successfully guided hundreds of Keller residents through Chapter 13 plans to financial stability.
Understanding Chapter 13 Reorganization Bankruptcy
Chapter 13 bankruptcy allows you to reorganize your debts into a manageable repayment plan lasting 3-5 years. During this time, you make a single payment to the Chapter 13 trustee, who distributes funds to your creditors according to the court-approved plan. At the end of the plan, remaining unsecured debts are discharged.
The power of Chapter 13: you keep your assets and home while restructuring debt on terms you can afford. This makes Chapter 13 ideal for individuals with regular income who want to preserve assets and cure mortgage or car loan arrears.
Chapter 13 Eligibility: Income Requirements
Chapter 13 is available to individuals with “regular income”—this means any consistent income source, whether from employment, self-employment, Social Security, or other regular payments. There are no maximum income limits for Chapter 13, making it available to higher-income debtors.
Your unsecured debt must be below $419,275 and secured debt below $1,257,850 (2023 limits; adjusted annually). Your income must be sufficient to propose a feasible plan that pays required percentages of your debts.
We evaluate your Chapter 13 eligibility and calculate a realistic plan payment during your consultation.
How Chapter 13 Repayment Plans Work
Your Chapter 13 plan distributes your monthly payment to three classes of creditors:
- Priority Debts (100% paid): Child support, alimony, recent taxes, wage claim withholding—these must be paid in full
- Secured Debts (100% paid): Mortgages, car loans, and home equity loans—these are paid to prevent foreclosure or repossession
- Unsecured Debts (% paid): Credit cards, medical bills, personal loans—these receive a percentage based on available income, with the remainder discharged
Plan length (3-5 years) is determined by your income and debts. Low-income debtors typically have 3-year plans; higher-income debtors often have 5-year plans.
Protecting Your Home and Assets in Chapter 13
Chapter 13 is specifically designed to protect homeowners. Key protections include:
- Foreclosure Halt: Automatic stay immediately stops foreclosure proceedings; arrears are paid through your plan
- Mortgage Modification: We negotiate terms with your lender; courts can modify certain mortgages
- Vehicle Protection: Crammed-down car loans reduce the debt to fair market value if purchased within 2.5 years of filing
- Exemption Protection: Your home, vehicle, retirement, and personal property remain fully protected
For homeowners facing foreclosure in Keller Texas, Chapter 13 often is the only viable path to keeping the home.
Chapter 13 Timeline: Plan Filing to Discharge
- Pre-Filing Credit Counseling (1-2 weeks): Complete mandatory course
- Filing Day (Day 0): Chapter 13 petition and plan filed; automatic stay issued immediately
- Days 1-30: Notice sent to creditors; creditors must cease collection and foreclosure proceedings
- Days 20-40: 341 Meeting of Creditors held; trustee and creditors may question your plan
- Days 40-60: Plan confirmation hearing before the judge; we argue plan feasibility and creditor claims
- Day 60+: Plan is confirmed; you begin making monthly payments to the trustee
- Months 1-60: Payments continue; trustee distributes to creditors per plan; you complete financial management course
- Month 36-60: Final payment made; discharge order entered for remaining unsecured debts
Chapter 13 Bankruptcy in Keller
All Keller Chapter 13 cases are filed with the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division. Your 341 Meeting and confirmation hearing will be held before the Chapter 13 trustee and bankruptcy judge, typically at the Fort Worth courthouse.
From Keller, the courthouse is easily accessible via I-20 and I-30. Our office handles all trustee coordination and court appearances, keeping you informed every step of your plan.
Chapter 13 FAQs
Can Chapter 13 stop my foreclosure?
Yes. The automatic stay immediately halts foreclosure. Your Chapter 13 plan then pays your mortgage arrears over 3-5 years while you stay current on ongoing payments—protecting your home.
What happens if I miss a plan payment?
Missing a single payment can result in plan dismissal, which lifts the automatic stay and allows foreclosure to resume. We help you manage your plan payments and can request plan modifications if circumstances change.
Can I modify my Chapter 13 plan?
Yes. If your income increases, you can modify to pay creditors more. If your income decreases, we can request plan modification to reduce payments. Courts grant reasonable modifications.
What happens after I complete my Chapter 13 plan?
Upon completion of all required plan payments, the bankruptcy court enters a discharge order eliminating all remaining unsecured debts. You’re debt-free (except student loans and non-dischargeable debts).
Can I file Chapter 7 after Chapter 13?
Yes, but you must wait 4 years from Chapter 13 discharge before filing Chapter 7. Early filing is possible in limited circumstances, but generally the 4-year rule applies.
Facing Foreclosure or Unmanageable Debt in Keller?
Chapter 13 can save your home and restructure your debt into affordable payments. The key is acting quickly before foreclosure is final. Contact Machi Wright & Associates today for a free consultation. Ted Machi and Daniel Wright will review your options, explain how Chapter 13 works for your situation, and guide you toward financial recovery and homeownership preservation.
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Contact Us for a Free Bankruptcy Consultation
Contact Machi Wright & Associates today at (817) 335-8880 to schedule your free bankruptcy consultation. Located at 1521 N Cooper Street, Suite 340, Arlington, TX. Let our experienced attorneys help you navigate your financial challenges with confidence and clarity.