Galveston County Chapter 13 Bankruptcy Attorney

Proudly Serving Friendswood, Houston & Pearland, TX

Considering Chapter 13 bankruptcy? John E. Smith & Associates has worked with thousands of clients to resolve their debts and helping them with all types of bankruptcy matters. We take the time to get to know you because we truly care about your needs. We help others during these stressful situations, so you will never feel alone in the fight.

The abundant paperwork and procedures for filing for Chapter 13 bankruptcy can be confusing, requiring time and attention to detail. Our Chapter 13 bankruptcy attorney in Galveston County has over 35 years of experience in this complex practice area and is intimately familiar with all of the related paperwork, procedures, and laws.

We can help you in a timely and professional manner while ensuring your rights are protected throughout the process. We fight for your best interests and offer the financial assistance you need.

Why Choose John E. Smith & Associates?

• Over 35 Years of Experience
• A Hands-On Approach to Every Case
• We Strive for Better Results to Save Time, Money, & Stress
• We Create Lasting Relationships with Our Clients

What Is Chapter 13 Bankruptcy?

Also known as a “wage earner’s plan,” Chapter 13 bankruptcy allows individuals with a consistent income to create a plan to pay off some or all of their debts. This chapter gives debtors the opportunity to draft a repayment plan for their debt to creditors in installments.

As determined through a means test, if the current monthly income is more than Texas’s current median monthly income, the installments must be paid over a period of five years. If income is less than the state’s median, the plan lasts three years. Chapter 13, among other things, protects debtors from creditors by preventing creditors from starting or continuing their collection efforts.

How Chapter 13 Can Help You

Filing for Chapter 13 bankruptcy provides the following benefits:

• The debtor makes planned payments to a Trustee who uses it to gradually pay down creditors with a consolidation loan.
• Third parties are protected from the debtor if they are liable for consumer debts
• Individuals are offered a chance to save their homes from foreclosure
• Secured debts can be rescheduled

Some debtors have concerns over losing their assets or property for a bankruptcy filing. However, as mentioned above, filing for Chapter 13 can actually save your home from foreclosure.

Chapter 13 allows filers to protect their property under bankruptcy exemptions. The state of Texas provides an unlimited deduction for a debtor's primary residence and one motor vehicle, with acreage limits depending on location.

Allowable Expenses in a Chapter 13 Plan

During your Chapter 13 plan, you will be assigned a Bankruptcy Trustee. This trustee will help you create your repayment plan and facilitate payments between you and your creditors.

Your Trustee will compare your income vs your expenses to determine your Chapter 13 plan's monthly payments. Bankruptcy courts will allow for expenses that are "reasonably necessary to live."

The list of allowable expenses includes:

• Mortgage or rent
• Homeowner's or renter's insurance
• Utilities
• Internet and phone plans
• Medical insurance
• Food and clothing
• Alimony and child support payments
• Student loan payments

Money outside of these and other allowed expenses is considered disposable income to pay back creditors.

The list of allowable expenses in a Chapter 13 plan is extensive, so it is in your best interest to establish these expenses with your Trustee.

Contact a Certified Specialist in Consumer Bankruptcy Law for Your Chapter 13 Case

Attorney John Smith is recognized as a Board Certified Specialist, which means he has proven and demonstrated knowledge and expertise in the field of consumer bankruptcy law. He personally provides all of our clients with individualized and effective legal services while working to handle all your legal issues as efficiently as possible.

We will do everything we can to help you become financially independent again, whether that's through filing for Chapter 13, Chapter 7, Chapter 11, or Chapter 12 bankruptcy. Find out why we are a top choice for bankruptcy firms for many individuals and businesses throughout Galveston County and the surrounding areas.