Chapter 13 bankruptcy can ease financial burdens in Collin County, TX

June 19, 2013 (Press-News.org) Chapter 13 bankruptcy can ease financial burdens in Collin County, TX

Article provided by The Ford Law Firm, PLLC
Visit us at http://www.forddebtlaw.com

Far too often we only hear about the negative aspects of filing bankruptcy in Collin County, Texas, but it can actually be a stepping stone toward a future free from debt and the constant feeling of pressure to make payments. People who file Chapter 13 bankruptcy may no longer have to worry and wonder how they are going to come up with the money to pay their bills and debts.

Misconceptions about bankruptcy

Many people have negative connotations with bankruptcy, such as that a filer will be looked down upon. However, a significant number of Texans filed for bankruptcy last year. In 2012 alone there were 48,381 total bankruptcy filings in the state.

Another common misconception that surrounds bankruptcy is that a filer will lose all of his or her property; however, depending on the filer's circumstances, certain exemptions may apply that protect both personal and real property from liquidation. In addition, Chapter 13's payment plan may also allow a filer to keep property so long as payments are regularly made and are current.

Advantages of filing Chapter 13 bankruptcy

More than half of the bankruptcy filings last year in the state of Texas were Chapter 13 filings and the majority of those filing were non-business. Chapter 13 bankruptcy is often chosen over other debt settlement strategies for the following reasons:
-Keep your home: One of the biggest advantages of a Chapter 13 bankruptcy is that the filer may be able to remain in his or her home instead of losing in foreclosure. If you are behind on your mortgage payments, you have the chance to make up those payments over time.
-Payment plans: Chapter 13 provides a way for people to make payment plans on their current debts (except for a primary mortgage) over the course of the Chapter 13 plan. The plan commonly runs for three years, but can be as long as five depending on the situation. This can help reduce monthly payments and interest rates.
-Stop harassment from creditors: Chapter 13 bankruptcy gets creditors off your back and keeps them away for the duration of the plan. No longer do you need to worry about avoiding harassing phone calls and collection notices in the mail. Once Chapter 13 bankruptcy is filed it puts an automatic stop to creditors coming after you.
-Payment consolidation: After you file and your payment plan is set up, you will make one payment a month to your chapter 13 trustee. It is the trustee's job to ensure that your payment is divided up and sent to each of your creditors. You no longer need to worry about making numerous payments to different creditors. That is all taken care of for you by your trustee.
-Discharge: When you are finished with your plan payments, if there is still a remaining balance on any of your debts, that balance may be discharged and the creditor has no power to come after you anymore.

Because the laws regarding Chapter 13 bankruptcy and discharge can be complicated, it is recommended that a person considering filing speak with a bankruptcy attorney for advice on how to proceed.