FAQS on Divorce by Busby & Associates
When deciding on whether chapter 13 bankruptcy is the best choice for you there is need to weigh the pros and cons of this form of bankruptcy. To assist with pointing out the pros and cons of chapter 13 bankruptcy, an attorney and spokeswoman for Busby & Associates gave comments. What are the basic advantages of filing chapter 13 bankruptcy? The spokeswoman responded by stating that, “the pros outweigh the cons in respect of filing chapter 13 bankruptcy. Some advantages are: that if you choose a payment plan and can afford the payment plan then the debtor stands to benefit from keeping all his/her property whether the property is exempt or non-exempt, which is impossible under chapter 7 bankruptcy. Also filing chapter 13 bankruptcy gives immediate relief and protection from creditor’s collection efforts as well as garnishment of wages. Filing chapter 13 bankruptcy also gives protection from foreclosure on your home, however, there is a condition to this advantage; the debtor must meet the terms of the payment plan or else foreclosure will be carried out. In respect of co-signers (co-debtors) on personal debt, they are provided immunity if the chapter 13 plan provides full payment”. The spokeswoman also stated that; “by filing chapter 13 bankruptcy, the debtor has more time to pay for debts that cannot be discharged through bankruptcy. One such example is that of back child support; while filing chapter 13 bankruptcy will not discharge the debtor of this debt, the debtor has the opportunity to draw up a payment plan so as to make payment toward the back child support, giving the debtor more time to make such payment”.
The spokeswoman also mentioned that while chapter 7 bankruptcy gave a restriction of up to eight years between the filing of bankruptcy, the main advantage of filing chapter 13 bankruptcy was in that a debtor could file bankruptcy at any time and further the debtor could file repeatedly as he/she deemed necessary. Further, she stated that under chapter 13 bankruptcy debts could be separated into different classes of creditors; the separation is made by way of the percentage of payment being made to creditors. Also more debts are considered dischargeable under chapter 13 bankruptcy such as credit card charges incurred for luxury items, immediately prior to filing bankruptcy. When asked to provide some disadvantages of filing chapter 13 bankruptcy, the spokeswoman stated that; “the main problem with filing chapter 13 bankruptcy is that the debtor makes a payment plan based on the debtor’s post-bankruptcy income; while this income is available it becomes tied up for the whole duration of the bankruptcy payment plan which is three to five years. Further, because the payment plan is between three to five years in duration, the debtor’s debts also become three to five years. In addition to this, the debtor is involved in the Bankruptcy Court process for the duration of his/her payment plan that is between three to five years”. The spokeswoman advised that for more information on chapter 13 bankruptcy in Texas, debtors should contact a law firm who have expertise and experience with bankruptcy law.
About the company Busby & Associates are a law firm of renowned professionals who have an established bankruptcy practice and also practice family law focusing on divorce and appear for child support Attorney General in Houston court.
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