Chapter 13 Bankruptcy Lawyers Serving Mansfield, TX
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Chapter 13 bankruptcy is a legal process that allows individuals to reorganize their debts and create a manageable repayment plan. Unlike Chapter 7 bankruptcy, which involves the liquidation of assets, Chapter 13 bankruptcy enables individuals to retain their property while repaying their creditors over a designated period of time.
One of the key benefits of Chapter 13 bankruptcy is the opportunity for borrowers to catch up on missed mortgage or car loan payments and prevent foreclosure or repossession. This type of bankruptcy also provides protection against creditor harassment and legal actions, allowing individuals to regain control over their financial situation. Additionally, Chapter 13 bankruptcy allows individuals to consolidate their debts into a single monthly payment. This payment is based on the individual’s income and reasonable living expenses, making it more feasible to manage and repay the debt.
Chapter 13 bankruptcy is a complex legal process with profound implications for individuals’ financial future. If you need legal guidance, make sure you seek the assistance of Mansfield bankruptcy lawyers.
Do You Qualify For Chapter 13 Bankruptcy?
To qualify for Chapter 13 bankruptcy, individuals must meet certain criteria set forth by the bankruptcy court. One of the primary requirements is a steady income that can support the proposed repayment plan.
It is also essential to have unsecured debts below a certain threshold. The current limit for unsecured debts is $465,275 and the limit for secured debts is $1,395,875. These limits are periodically adjusted to account for inflation.
In addition to income and debt limits, individuals must also complete mandatory credit counseling within 180 days before filing for Chapter 13 bankruptcy. This counseling session helps individuals explore alternatives to bankruptcy and provides valuable financial education.
Common Misconceptions About Chapter 13 Bankruptcy
Despite its numerous benefits, Chapter 13 bankruptcy is often surrounded by misconceptions. Here are a few of them and the facts that refute them:
|Myth – Chapter 13 Bankruptcy…
|Fact – Chapter 13 Bankruptcy…
|means losing all of your assets
|allows individuals to retain their assets as long as they abide by the terms of the repayment plan
|ruins your credit forever
|does impact credit scores, but with responsible financial management, you can rebuild their credit over time
|is only for individuals with low income
|is available to individuals with regular income, regardless of the amount. It is designed to provide a viable repayment solution for those struggling with debt
|eliminates all your debts
|discharges eligible debts, but certain obligations, such as student loans and child support, are not dischargeable
By understanding the facts and dispelling these misconceptions, individuals can make informed decisions about Chapter 13 bankruptcy and its potential benefits for their financial future.
How Our Mansfield Bankruptcy Lawyers Can Help!
Your livelihood can be adversely affected by filing for Chapter 13 bankruptcy, which is why it is so vital to work with lawyers who have a solid foundation in bankruptcy law. Ted Machi & Associates, P.C is a good place to start if you are looking to put your finances (and your life) back on track. We can assist you in a number of ways, including:
- Providing professional guidance
- Helping you understand eligibility criteria
- Formulating a repayment plan
- Negotiating with your creditors
- Represent you in court
- Helping protect your assets
- Helping with financial management
- And more….
With our experienced team of lawyers, we can walk you through the entire bankruptcy process and provide you with the professional advice and guidance you need to make an informed decision. Reach out to Ted Machi & Associates, P.C. today to schedule your free consultation and get started on the path to financial freedom!
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The team at Ted Machi & Associates help me through a difficult situation and was very responsive to insure a successful outcome. My attorney was very thorough in explaining and helping me make the right decision. If you need expert advice and a company with years of experience, I would consult with the team at Ted Machi and Associates. My outcome was favorable.
Dan Wright, embodied the persona of what an attorney should be. He restored our faith in the legal system with his professionalism and knowledge. We wouldn’t hesitate to recommend Machi & Associates to anyone needing assistance.
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