Filing Chapter 13 in Laredo, Texas
Filing a Chapter 13 case may be the best option for you to resolve your debt issues. Filing under this chapter of the Bankruptcy Code can help you save your home, business and vehicles while eliminating or reducing your unsecured debts. Other chapters of bankruptcy do not offer the same protection for assets that Chapter 13 offers for individuals, and sole owner small businesses.
We encourage you to call the Law Offices of Martin Seidler for a free bankruptcy consultation to learn more about how filing a Chapter 13 bankruptcy case can help you overcome debt problems. Our lawyer evaluates your financial situation to determine if filing under Chapter 13 is the best option for you.
Putting Your Debts into a Chapter 13 Plan That You Can Afford
Filing under Chapter 13 of the Bankruptcy Code gives you the opportunity to reorganize your debts into a manageable monthly plan, if you qualify. If you earn a steady income, even if you are self-employed, you are a contract employee, or you receive disability or Social Security income, you may be able to get your finances back on track by filing a bankruptcy petition. Through your Chapter 13 reorganization plan you can:
- Catch up past due mortgage payments
- Lower interest rate and payment for mortgage and vehicle loans
- Eliminate or reduce unsecured debts such as medical bills and credit card debt
- Stop foreclosure and repossession actions
- Protect the equity in your home and other assets
- Eliminate stale back unsecured taxes and restructure current taxes
- Potentially get rid of a second mortgage on your home
- Stop creditor harassment
- Value some collateral by paying its Court-approved value rather than the full amount due on a secured debt
- Get rid of liens on household goods
- Catch up domestic support obligations, including child support and alimony
- Stop wage garnishments by the Internal Revenue Service or other creditors
- Your bankruptcy plan is unique to your situation. Because you will be in a Chapter 13 case for up to 60 months, you want to hire an experienced Laredo Chapter 13 bankruptcy attorney who understands how to construct a plan that offers you the best benefits of a Chapter 13 bankruptcy case while meeting the legal requirements for a confirmable reorganization plan. You want an attorney who can calculate the lowest plan payment that still qualifies for approval by the trustee and the court. Our Laredo bankruptcy lawyer is the right choice if you want to file for bankruptcy relief.
Beginning the Chapter 13 Process in Laredo, TX
For someone who has never filed for bankruptcy relief, the bankruptcy process can be overwhelming. However, when you hire the right attorney, that process becomes much less stressful. When you decide to file a bankruptcy petition, our legal team works with you to gather the required information necessary to complete your Chapter 13 bankruptcy petition, schedules, statements and plan. Unlike some law firms, we will not leave you alone to gather this information. We work with you as you go through the process of eliminating or reducing your debts.
Once we have the information we need, our staff completes the forms under the direction of Martin Seidler who reviews each form with you to ensure it is accurate and complete. After you sign your forms, our office takes care of filing the case and obtaining your case number and hearing date. Our lawyer attends court with you and works to obtain approval for your proposed Chapter 13 bankruptcy plan. After your plan is approved, you continue making payments through the Chapter 13 Trustee according to the terms of the plan until all plan payments are made.
Once you complete your plan, your bankruptcy discharge is granted and you can go forward without the burden of debt. You successfully eliminated unsecured debts and resolved other debt problems that were holding you back from a bright, productive financial future.
Advantages of Filing a Chapter 13 Case Over Filing a Chapter 7 Case
Even though filing a Chapter 13 case is more complex than filing a Chapter 7 case and you must repay some of your debts back to your creditors through your bankruptcy plan, filing under Chapter 13 does have some advantages over filing a Chapter 7 case. For instance, in some cases, you can avoid jail time for past due alimony and child support payments by filing under Chapter 13 of the Bankruptcy Code. You can also stop foreclosure sales and repossessions and catch up payments over a 60-month plan to save your home, personal and real property business assets and car. You can also resolve tax issues by spreading out tax payments over 60 months. Disputed debts claimed by the IRS can be litigated in Bankruptcy Court rather than more expensive and time consuming U.S. District Court or Tax Court. In some cases, you can strip the lien of a second mortgage and pay pennies on the dollar to get rid of that second mortgage.
These benefits are in addition to the same ability to eliminate or reduce unsecured debts such as credit cards, medical bills, personal loans, and old utility bills. You may be in a Chapter 13 case much longer than you are in a Chapter 7 case; however, you can do so much more through a Chapter 13 case than you can in a Chapter 7 case.
The amount paid under a Chapter 13 Plan is partially a function of a debtor’s net disposable income and value of his non-exempt assets. A chapter 13 debtor must propose a plan which pays creditors at least the net value of his non-exempt property. Most debtors have little or no non-exempt property or have little or no equity in their non-exempt property, such as rent houses or partially leased or vacant strip shopping centers, warehouses or empty stores in downtown Laredo.
When a Laredo export company did not pay the Form 941 employment taxes due on its workers’ salaries to the Internal Revenue Service, the IRS imposed a 100% penalty in the amount of trust fund portion of the unpaid 941 taxes individually on the corporation’s officer, as a responsible party. Responsible parties have the duty to withhold and pay over to the IRS the trust fund portion of the Form 941 taxes withheld from workers’ salaries. When the IRS threatened to seize and sell the corporate officer’s assets including his trucks and commercial buildings, Laredo bankruptcy attorney Martin Seidler filed a Chapter 13 Bankruptcy for him which allowed him to repay the sizeable debt owed to the IRS over several years. The Bankruptcy Court also authorized the sale of some of his commercial property, at his request, free and clear of liens. This not only cleared up title issues to the property but also freed up funds that were used to repay the Internal Revenue Service. The Chapter 13 Plan payout was reduced to less than three years. The officer now enjoys living without the threat of the IRS dunning him for past due corporate taxes. His IRS debt was paid in a manner which he could afford.
An Experienced Laredo Bankruptcy Lawyer on Your Side
At the Law Offices of Martin Seidler, we provide legal services with compassion based upon years of experience. We want you to feel comfortable with your decision to file for bankruptcy relief. We also want to help you see the possibility of a debt-free future and life without the stress of dealing with debt problems. You can improve your future by taking the first step in eliminating debts you cannot afford to pay.
If you have fallen behind on your payments, do not wait until you receive a foreclosure notice or your vehicle is repossessed to learn about the benefits of filing a Chapter 13 bankruptcy. For a free consultation call (210) 694-0300 or email our office. We help individuals and businesses throughout south and central Texas find affordable solutions to their debt problems.