In Texas, bankruptcy cases provide assistance for consumers who are swimming in debt. The consumers have the chance to choose a restructured payment plan or liquidation. A local Bankruptcy Attorney in Fort Worth provides advice for consumers about each chapter available to them.
Qualifying Incomes for Bankruptcy
To qualify for chapter 13 bankruptcy, the consumer must have an annual income that is higher than the median income for their household. The median income for the Fort Worth area is $59,175. The consumer must provide financial records that show that their income meets the eligibility requirements.
The Expectations of the Court
The court expects the consumer to pay all their monthly payments on time. The consumer has the choice to submit the payments themselves or have it garnished from their wages. If it is garnished, the payment is a pretax value. This means that the consumer pays less on their taxes. If the court doesn’t receive the payment, the case could be discharged early. If that happens, the consumer is responsible for all debts included in the claim immediately.
Limitations for the Consumer
The consumer is limited when they file for chapter 13 bankruptcy. The court prevents them from starting any new lines of credit. In fact, it is a violation of the terms of their bankruptcy. The cases aren’t the same as chapter 7 where the consumer can start new lines of credit after the case is active. The consumer must use the value designated as their disposable income to pay debts that were not included in the case.
Getting Rid of Debt Faster
In bankruptcy, the court can discharge debts. All debts that are discharged by the court are listed as paid in full. The information is updated on the consumer’s credit history, too.
In Texas, bankruptcy cases offer a new way to pay off debts. If the consumer chooses chapter 13, the case involves a restructured payment plan. It can last up to five years. On the other hand, liquidation lasts up to six months. At the end of the cases, the consumer could become debt free. Consumers who want to learn more about the claims contact a Bankruptcy Attorney in Fort Worth by visiting us right now.
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