Your alternatives for filing for bankruptcy in Houston, Texas, and Riverside, California, as well as the requirements fo

1. Your alternatives for filing for bankruptcy in Houston, Texas, and Riverside, California, as well as the requirements for qualifying In order to reduce or eliminate some debts, individuals who are too indebted to manage with their current income streams may file for bankruptcy in the US. A schedule for paying back secured debts and non-dischargeable obligations over time may occasionally be given to the debtor. Federal bankruptcy law is codified in the Title of the U.S. Bankruptcy Code that governs all bankruptcy filings. The special federal courts are where all matters are filed and heard. The process of declaring bankruptcy in Riverside, California, or Houston, Texas, can result in the "discharge," or legal removal of your obligations. Additionally, you can avoid having your car or property repossessed and stop the foreclosure process on your house or mobile home. Chapter 7 or Chapter 13 bankruptcy filings account for more than 90% of bankruptcies filed in the United States by both individuals and businesses. Each of the two bankruptcy alternatives has distinct objectives and results. Talking with a bankruptcy attorney Riverside will let you know that most unsecured debts, including credit card debt and medical expenses, will no longer need to be paid. If you have little to no disposable income, your bankruptcy attorney Riverside will advise you about this option. To demonstrate that you are unable to pay your debt, you will need to pass a means test. Bankruptcy under Chapter 13 discharges unsecured debts Chapter 13 bankruptcy, on the other hand, is meant for people with a steady source of income. Chapter 13 bankruptcy, also referred to as the wage earner's plan, is a bankruptcy alternative that your chapter 13 bankruptcy Hoston TX attorney might recommend if you are employed yet have fallen behind on your

2. payments. You have three to five years to pay off your debts and devote all of your discretionary income to this process. You will be able to pay off unsecured debts under Chapter 13, but you will also receive the much-needed time to catch up on your mortgage payments. Avoiding having all of your assets liquidated Chapter 13 bankruptcy has debt limitations as well, and the caps are updated every three years. In consultation with you, your Houston, Texas Chapter 13 bankruptcy lawyer will file a repayment plan for any debts that you must pay back over the course of three to five years. Most of the time, you will be able to retain some assets, like your house or car. Generally speaking, creditors must be paid back at least as much as they would have under a different bankruptcy procedure. The primary goal of Chapter 13 bankruptcy, as a Houston, Texas, chapter 13 bankruptcy attorney will explain, is to avoid having all of your assets liquidated. It's usually used to keep your house from being forcibly sold. The bankruptcy plan will be examined by a trustee appointed by the court, who will then advise the court. If the remaining debt is paid up in accordance with the plan, it will be discharged. Thus, even if the creditor doesn't receive the entire amount, you will no longer owe them money or be obligated to pay them back.