One of the most frightening aspects of excessive debt is the prospect of losing your home and other property. At The Law Offices of Cheryl S. Davis, P.C., in El Paso, I have helped clients use Chapter 13 bankruptcy to save their home from foreclosure, preserve other personal property, and regain a secure financial footing. I draw on more than two decades of experience helping clients to find relief through bankruptcy and am ready to help you resolve your debts and move on with confidence in the future.
Chapter 13 requires you to pay back some or all of your debt over a three-to-five-year period through a payment plan worked out with an independent, court-appointed trustee. Your plan will take into account your disposable income — the amount of money you have left each month after paying acceptable living expenses, so this type of filing is meant for people with steady incomes and those who wish to keep their homes and cars. Your bankruptcy plan is overseen by a judge. If you fail to make required payments, the judge could throw out your bankruptcy without discharging your debt, leaving you back where you started — or worse. My firm will help you create a workable payment plan that has the best chance of success.
In Chapter 7, your assets are liquidated to discharge your debts; in Chapter 13, your debt is reorganized and repaid over time, and must include full payments for these nondischargeable debts:
Unsecured debts include medical, credit card, utility and personal loans. The amount you pay on these debts through your payment plan depends on the value of your nonexempt property and your disposable income.
If you have overdue car or mortgage payments, we can halt the creditors and help structure a payment plan that will let you keep your house or home and car.
Even if your home is already in foreclosure, filing a Chapter 13 petition will stop the proceeding as long as the mortgage company has not already completed the foreclosure sale. My firm will help create a payment plan that brings your past-due mortgage payments current over the life of the plan. You will have to make your monthly Chapter 13 payments on time, however, or risk losing your home. Your plan payment will also include your current, ongoing house payment to help you keep on track. An additional mortgage benefit of filing Chapter 13 is the ability to sometimes strip off second or third mortgages or home equity lines of credit, which significantly reduces your home loan debt. A Chapter 13 payment plan also helps you pay down your non-mortgage debts, leaving more money each month for you to cover your mortgage.
What if you want to refinance your mortgage or sell your home during a Chapter 13 proceeding? Both are allowed, but you need to follow specific court rules. To refinance, the bankruptcy court must grant permission. In the case of a home sale, the bankruptcy court must approve the terms, and all creditors must be notified before the sale can be completed. My firm can help you navigate these procedures so you don’t put your bankruptcy or your property at risk.
The Law Offices of Cheryl S. Davis, P.C. helps Texas clients preserve their property in Chapter 13 bankruptcy proceedings and also advises on other debt relief concerns. Please call 915-320-6226 or contact me online to schedule an appointment at my office is in El Paso.