In these current economic conditions, it is becoming harder and harder to stay afloat financially. With bills piling up and creditors becoming more aggressive about collecting debts, people can sometimes feel like their situation is hopeless. Fortunately, the Federal Government recognizes these hardships and long ago passed a law to help civilians deal with these mounting pressures in an economical and stress-free manner.
Chapter 13 Bankruptcy in Texas
Chapter 13 bankruptcy is commonly known as the “wage earner plan”. It is typically used by individuals whose income exceeds the level required to file under Chapter 7 of The Bankruptcy Code, but is open to all who qualify. Filing under Chapter 13 allows a debtor to reorganize her debts and typically pay them off under a longer time frame than initially contemplated. A Chapter 13 debtor is usually allowed to keep all of her property.
Chapter 13 bankruptcy is commonly known as the “wage earner plan”. It is typically used by individuals whose income exceeds the level required to file under Chapter 7 of The Bankruptcy Code, but is open to all who qualify. Filing under Chapter 13 allows a debtor to reorganize her debts and typically pay them off under a longer time frame than initially contemplated. A Chapter 13 debtor is usually allowed to keep all of her property.
Chapter 13 Process
The following is the process followed at Patricia L. Brown & Associates for Chapter 13 cases:
- Initial Consultation (Free of charge)
* Please bring a filled out Bankruptcy Intake form, found here, to this meeting.
At this free consultation, you will meet with an attorney and discuss your financial situation and bankruptcy options. If you and the attorney agree that a Chapter 13 bankruptcy is your best option, you will hire Patricia L. Brown & Associates as your representative in the bankruptcy. In addition, you will be given paper work to fill out and a list of documents needed for this process, (such as tax returns, pay stubs, etc.).
- Second Meeting
This meeting will typically occur within one week after the initial consultation. At this meeting, we go over your paper work with you to ensure that we have all of the necessary information
- Third Meeting
This meeting is the last step toward filing and can occur within a few days after the second meeting. You will review all of the documents and sign the petition. The petition is the document that will be filed with the court and has the amount of your monthly payments. Also at this meeting, you will be told the date that your first payment is due and to whom and what address to make the payment.
- Filing
After the signing meeting, we will file your case and send a notice all of your creditors. Getting to this point will usually take between two days and several weeks, depending on the urgency of your case and your work schedule.
- 341 Meeting
The 341 Meeting, also known as the meeting of creditors, will occur roughly thirty days after the petition is filed and will give the creditors that show up at chance to ask you questions about your assets. The meeting will typically occur at the Bankruptcy Court Offices on the corner of San Jacinto and 9th Street in downtown Austin.
- Begin Monthly Payments
Your first monthly payment is due 45 days after your case is filed, regardless of whether your 341 meeting has occurred. This payment must be made on time and your name and case number should be indicated on your payment.
- Discharge
After your last monthly payment has been made, you will receive you discharge. At that point, you will not owe any of the creditors included in your consolidation.
If you have any questions regarding this process, please give us a call at 512-436-0826 and set up a consultation.
Helpful Bankruptcy Links
In order to file for your bankruptcy, your attorney will need detailed information about your assets and liabilities. The following links are provided to assist you with valuing your assets and obtaining more information on the bankruptcy process.
U.S. Bankruptcy Court - Western District of Texas
The official site of the United States Bankruptcy Court for the Western District of Texas. The Court has several locations ("divisions"): Austin, El Paso, Midland, San Antonio, and Waco. Each location serves different counties. The website provides a variety of helpful information and useful links.
Bankrate.com
Bankrate.com provides information on mortgage rates, CD rates, auto loans, credit cards, mortgages, personal finances and more.
TransUnion.com
Experian, Equifax, and TransUnion are the three major credit bureaus. TransUnion's site offers online access to your credit report, credit management and education services, and a variety of other helpful information and useful links.
Experian.com
Experian, Equifax, and TransUnion are the three major credit bureaus. Experian's site offers online access to your credit report, credit management and education services, and a variety of other helpful information and useful links.
Equifax.com
Experian, Equifax, and TransUnion are the three major credit bureaus. Equifax's site offers online access to your credit report, credit management and education services, and a variety of other helpful information and useful links.
Nada Auto Values
The National Automobile Dealers Association allows you to figure out the current value of any automobile, motorcycle, or boat you may own.
Kelly Blue Book
The Kelly Blue Book is an alternative automobile valuation tool which also gives additional information about that vehicle (such as average miles per gallon and features).
Zillow.com
Zillow.com allows you to compare your home to similar homes for sale in your neighborhood to determine the approximate market value of your home.
Ebay.com
Ebay is an online marketplace that you can use to figure out what personal items you have may be selling for.
The intake form has been posted to speed up the filing process and allow you to properly prepare for the attorney meetings. It is not contracts in-and-of itself and no attorney-client relationship is formed until the employment contract is signed. Pursuant to 11 U.S.C. §528, “We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.”
