The answer to this question depends on your specific circumstances. Generally speaking, a Chapter 7 bankruptcy is better for people who have a lot of unsecured debt (credit card and medical bills) and a relatively low income. If you pass the means test, and most of your debts are unsecured, you might want to consider a Chapter 7 bankruptcy. Chapter 13 bankruptcy tends to be a better option for those who have regular income and lots of secured debt like car(s) or a home which they’d like to keep and pay back over time.
Most of the time, a Chapter 13 also allows you to avoid paying back your credit card debt as well. How much you will have to pay every month depends in part on how much income you have. To find out how much you will have to pay every month to unsecured creditors in a Chapter 13 Plan, check here (usually it is only pennies on the dollar). A Chapter 13 will only be confirmed for those who have enough income to propose a Plan that is realistic – in which they can pay all of their regular monthly secured debt payments for property that they want to keep (mortgage and car) during the next 3-5 years. A Chapter 13 is an incredible solution and can prevent foreclosure in Texas immediately. A Collin County bankruptcy lawyer can review your specific financial circumstances and advise you as to which type of bankruptcy protection might be best for you.
Texas bankruptcy laws offer some of the strongest debt relief and protection in the nation. Take action if you’re struggling under the heavy load of debt.
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