Chapter 13 Bankruptcy

Posted October 1st, 2009 by BankruptcyLawyer

Chapter 13 Overview

Chapter 13 bankruptcy may allow you to overcome a insurmountable debt load without requiring you to give your belongings to creditors. It takes between three and five years to complete, and it is available for both indebted consumers and sole proprietorships.

Debt Relief for Individuals and Sole Proprietorship Businesses

In Chapter 13 bankruptcy all of your debts are reorganized into one monthly payment. This occurs through negotiations during a Chapter 13 bankruptcy court hearing in San Antonio where you, your lawyer, your creditors and a Chapter 13 trustee can negotiate a reorganization plan.

For three to five years, you will send your monthly payments to the Chapter 13 trustee, who will distribute payments to the creditors. At the end of the three to five year period, all your debts will be discharged.

Secured Debts in Bankruptcy

Secured debts, like back liens taxes, mortgages or car payments, can sometimes be altered through this plan. The dollar amount, however, owed on most home mortgages and consumer auto loans will not be decreased. But, by paying only a percentage owed on unsecured debt may allow you to free up needed income and permit you to catch up on payments to avoid foreclosure or repossession in San Antonio.

Limitations do apply to those who choose to file a Chapter 13 bankruptcy in San Antonio. You may not be eligible if the money you owe exceeds a certain dollar amount. If you are unable to file under Chapter 13 or consumer Chapter 7 bankruptcy, you may need to consider business Chapter 7 bankruptcy or Chapter 11 bankruptcy.

A local San Antonio bankruptcy lawyer can help you determine which approach is best for you.

To learn more about bankruptcy in the San Antonio area, you can schedule an appointment for a free initial consultation with one of the members of our legal team. Just call (210) 807-4252 or contact our offices online.