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Chapter 13 Bankruptcy Katy Texas

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Chapter 13 Bankruptcy Katy Texas

How does filing under chapter 13 affect lawsuits and attachments against the debtor?


Chapter 13 Bankruptcy Katy Texas. The filing of a chapter 13 case automatically stays (stops) all lawsuits, attachments, garnishments, and other action by creditors against the debtor and his property for as long as the chapter 13 case lasts. A few days after the case is filed, a notice is mailed by the court to all creditors advising them of the automatic stay. The creditors may be notified sooner by either the debtor or his attorney, if necessary. Creditors are not permitted to file lawsuits or attachments against the debtor during the chapter 13 case, and if the debtor is granted a chapter 13 discharge, they will be prohibited from attempting to collect any discharged debt form the debtor after the case is closed.

How may secured creditors be dealt with under chapter 13?


There are four methods of dealing with a secured creditor under chapter 13: (1) he may accept the proposed plan, (2) he may be allowed to retain his lien and be paid the full amount of his secured claim under the plan, (3) his collateral may be surrendered to him, or (4) he may be dealt with outside the plan. It is important to realize that a secured creditor is considered to have a secured claim only to the extent of the value of his secured interest, which cannot exceed the value of the property securing the claim. For example, if a secured creditor has a mortgage on an automobile, and if the automobile is worth $500, then that creditor has a secured claim of only $500, regardless of how much is owed to him. If the debtor is in default to a secured creditor, the default must be cured (made current) within a reasonable time. Also, interest must be paid on secured debts.


How are debts that have been cosigned, or guaranteed by someone else handled under chapter 13?


If a consumer debt that has been cosigned or guaranteed by another person is being paid in full under a chapter 13 plan, the creditor will be prohibited from collecting the debt from the other person. However, if the debt is not being paid in full under the plan, the creditor will be permitted to collect the unpaid portion of the debt from the other person. A consumer debt is a non business debt.


When must the payments to the chapter 13 trustee begin and how often and by whom must they be made?


The chapter 13 payments must begin within 30 days after a chapter 13 plan is filed with the court, and a chapter 13 plan must be filed with the court within 15 days after the cases is filed. The payments must be made regularly, but in most cases they can be made weekly, bi-weekly, or monthly, whichever is most convenient for the debtor. If the debtor is employed, some courts require the chapter 13 payments to be made by the debtor’s employer, otherwise, the payments can be made directly by the debtor.


How does filing under chapter 13 affect a person’s credit rating?


Many people who contemplate filing bankruptcy already have accounts in a charged off status by the creditors, or repossessions, or foreclosures reported against their credit. Other people anticipate their problems and are able to file bankruptcy before any negative marks appear against their credit. The Fair Credit and Billing Standards Act prohibits a creditor from reporting any negative remarks against a persons credit after they file bankruptcy for debts that were incurred prior to the filing date. The fact that your filed bankruptcy must be removed from your credit report after 10 years from the date that you file. Most mortgage companies will make people wait at least 2 years after they have filed bankruptcy before they will consider financing a home. However, some financial institutions openly solicit business from people who have efficiently filed bankruptcy, apparently because of the prohibition against receiving a discharge more than once every 6years and the fact that a person who has recently received a discharge usually has little, if any debt.


Are the names of the person who file under chapter 13 published?


When a chapter 13 case is filed, it becomes a public record and the name of the debtor may be published by some credit-reporting agencies. However, newspapers do not usually report or publish the names of person who file under chapter 13.


Does a person lose any of his or her legal rights by filing under chapter 13?


No. Filing under chapter 13 is not a criminal proceeding, and a person does not lose any of his civil or constitutional rights by filing. It should be noted that it is illegal for an employer to discriminate against a person as to employment because that person has field under chapter 13.


May employers or government agencies discriminate against person who file under chapter 13?


It is illegal for either private or governmental employers to discriminate against a person as to employment because that person has filed under chapter 13. It is also illegal for local, state, or federal governmental units to discriminate against a person as to the granting of licenses (including a driver’s license), permits, and similar grants because that person has filed under chapter 13.


What is required for court approval of a chapter 13 plan?


The court will confirm a chapter 13 plan if: (1) the plan complies with the legal requirements of chapter 13, (2) all required fees, charges and deposits have been paid, (3) the plan has been proposed in good faith, (4) each unsecured creditor will receive under the plan a least as much as he would have received had the debtor filed under chapter 7, (5) it appears that the debtor will be able to make the required payments and comply with the plan, and (6) each secured creditor has been dealt with in the manner described in the answer above.



When does a debtor have to appear in court in a chapter 13 case?


All debtors have to appear in court at least once for a hearing called the meeting of creditors. This is where the Trustee who has been appointed to the case will review the paperwork. Attendance at an orientation program set by the trustee’s office may be required. Some debtors may have to appear again for a hearing on the confirmation of the debtor’s chapter 13 plan. The meeting of creditors is held about a month after the case is filed. The meeting of creditors is is held in downtown at the United States Federal Court Building, 515 Rusk Room 3401 on the 3rd floor, Houston, Texas 77002. The confirmation hearing will also be held at the United States Federal Court Building, 515 Rusk, Houston, Texas at a later date. The debtor will receive notice of the dates and times from the court and our office.


Our toll-free telephone number is at 1-866-912-9832. You need to learn about all of your options including information about credit, debt, bill consolidation services and federal bankruptcy law. Please call us at 1-866-912-9832 so that we can discuss your case.You can also visit our web site: www.busby-lee.com. Our attorney fees are reasonable, competitive, and court- approved. It is important that you call us soon. Our office is conveniently located near the Galleria and Highway 59 on Hillcroft between Richmond and Westheimer. We also maintain a branch Katy, Texas office at 1804 Snake River Road, Suite, C Katy, Texas 77449 Call us toll-free at 1-866-912-9832 for directions to our office.


We provide bankruptcy services in the greater Houston metro area including the cities of Katy, Sugarland, Pearland, Friendswood, Clear Lake and Galveston. We also handle cases from The Woodlands, Spring and Tomball and cases in Baytown and Channelview.


We handle bankruptcy cases in all of these counties: Brazoria, Chambers, Galveston, Matagorda, Austin, Brazos, Colorado, Fayette, Fort Bend, Grimes, Harris, Madison, Montgomery, San Jacinto, Walker, Waller, Wharton