What You Need To Know About Chapter 13 Bankruptcy

When filing Chapter 13 bankruptcy, you want to have a personal bankruptcy lawyer who understands your situation. The law firm of William H. Lively, Jr. WHL, PLLC, specializes in filing bankruptcy in Tyler and the surrounding counties of Texas. We offer help with debt and will work to give a new start financially in which you can immediately rebuild your credit.

What Is Chapter 13?

Chapter 13 bankruptcy gives you the opportunity to adjust your financial affairs without having to liquidate (sell) current assets. Instead, you can make a payment through a Chapter 13 trustee to pay back creditors an equivalent amount (the same that they would have received in a Chapter 7 case) over a period of 3 to 5 years. You can also restructure car notes to lower payments and create a payment plan for your house.

Many Chapter 13 cases deal with people who are facing:

  • Foreclosure on their home
  • Repossession of their vehicles
  • Court action to levy judgments against you
  • Wage garnishment by debtors (including the IRS)

This plan can also:

  • Reduce interest rates on some loans
  • Possibly discharge some of your unsecured debt (credit cards)

Any individual or married couple may file a Chapter 13, including small family businesses. However, corporations and LLCs are not eligible to file.

Automatic Stay

The most powerful relief that an individual can receive in Chapter 13 is the automatic stay. It is called automatic because that is exactly what it is — immediate relief from all collection activities and property seizures, including calls or harassment from creditors. The automatic stay will not stop collection of child support that is owed after filing, nor the continuation of criminal proceedings.

Create A Plan For Eliminating Your Debt

Attorney Bill Lively is highly experienced in helping individuals, families and business owners to successfully repay their debts and move forward. To schedule a free consultation with him, please call 903-920-0008 or fill out our online contact form.