Chapter 13 bankruptcy is very different from a bankruptcy under Chapter 7. When you file for bankruptcy under Chapter 7, your non-exempt assets are liquidated in order to pay off a portion of your debts, and then your remaining debts will be wiped clean (with some important exceptions). In Chapter 13 bankruptcy, you restructure your debts and make a plan to pay over time. If you make your payments as scheduled, a certain amount of your debt may be forgiven at the end of your payment plan. For this reason, Chapter 13 bankruptcy is commonly known as a “wage earner’s plan,” while a filing under Chapter 7 is referred to as a “liquidation” bankruptcy.

If you are earning a stable income but your debts have become unmanageable, filing for bankruptcy under Chapter 13 may be your best option. However, filing for any type of bankruptcy can have serious and long-term financial implications. As a result, before you decide to file, you should discuss your options with an experienced bankruptcy attorney.

Chapter 13 Bankruptcy Attorney in The Woodlands, TX

The Law Office of Rebecca Moughon is a bankruptcy law firm that represents individuals and couples throughout the Houston area. With offices located in The Woodlands, the firm serves clients in Kingwood, North Houston, Spring, Tomball and the surrounding areas. If you are struggling financially and are thinking about bankruptcy, Attorney Rebecca M. Moughon can help you make informed decisions with a long-term perspective. If bankruptcy is right for you, she can help you choose between Chapter 7 and Chapter 13, and she can help you complete the process as quickly and painlessly as possible.

Eligibility Requirements to File for Bankruptcy Under Chapter 13

In order to be eligible to file under Chapter 13, you must meet certain requirements. For example, you must have completed an approved debt counseling program within the past 180 days, and you must not have had debts discharged in a previous Chapter 13 bankruptcy within the past two years.

Other eligibility requirements include:
You must not have received a Chapter 7 discharge within the past four years.
You must have proof that you have filed your tax returns.
Your debts must be less than the cap for Chapter 13 reorganization eligibility.

Debts That Cannot Be Discharged Under Chapter 13

While most types of debts can be reorganized under Chapter 13 (meaning that you can structure a payment plan that makes it easier to pay your monthly bills), not all debts are eligible to be discharged at the end of a Chapter 13 bankruptcy.

For example, Chapter 13 bankruptcy will not eliminate:
Student loan debt
Alimony obligations
Child support obligations
Certain tax obligations

Request a Free and Confidential Consultation

If you would like more information about the eligibility requirements and potential benefits of Chapter 13 bankruptcy, we encourage you to contact us for a free consultation. To speak with Attorney Rebecca M. Moughon about your situation in confidence, please call (832) 653-9371 or request an appointment online today.