Proactively Analyzing Your Debt Options

At the law office of Emil Sargent Attorney at Law, our experience of over 25 years translates into equal proficiency with Chapter 7 and Chapter 13 filings. Yet despite a few procedural similarities, the legal protections are quite distinct. This is why it is so important to proactively consult with an attorney if you are considering bankruptcy. Before you file, we can help position you to best utilize the protections of federal bankruptcy law.

Restructuring Your Debt In A Chapter 13

Choosing the right bankruptcy filing involves much more than your preference for a Chapter 7 liquidation over a Chapter 13 repayment plan. For starters, only debtors who statutorily qualify under a means test may file for Chapter 7. If your income, equity and assets exceed this financial threshold, the law mandates a Chapter 13 filing where you will have to pay back some of your debt.

Proposing Feasible Repayment Plans

Notably, a Chapter 13 is often preferred even when it is not statutorily mandated. If you want to keep a large asset, such as a motor vehicle or home, a Chapter 13 repayment plan will thwart any repossession or foreclosure efforts. However, you must be careful to propose a repayment plan that is feasible. We will work with you, evaluating whether you have enough income to sustain payments over the life of the plan. If the trustee or one of your creditors files an objection, we have the persistence and experience to revise your proposed plan until you receive confirmation from the trustee.

Maximizing Your Legal Benefits

Emil SargentAnother benefit of a Chapter 13 is that the repayment plan generally limits your payments to an amount equal to or less than the fair market value of each securitized asset. This is an important protection if you cross-collateralized an asset. Take the example of a car. Cross-collateralization would result in multiple liens against it. In a Chapter 13 plan, the trustee would generally remove those excess loans after your plan payments total the car's fair market value. In contrast, a Chapter 7 trustee would likely sell the car to distribute the proceeds against the excess loans.

Giving You The Bottom Line

We have the experience to analyze your debts and assets and give you the bottom line. To learn more about how a Chapter 13 filing can protect you, schedule a free initial consultation at our Houston office. You may call 713-364-0002, or complete our online contact form.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.