Arlington Chapter 13 Bankruptcy Attorneys

Arlington Chapter 13 Bankruptcy Attorneys

If you are facing overwhelming debt and need a structured way to regain control of your finances, Chapter 13 bankruptcy might be the solution you need. While Chapter 13 bankruptcy is not available to businesses, individual business owners, sole proprietors, and self-employed individuals can still take advantage of this process to reorganize and restructure their debts. At McCarty-Larson, PLLC, we understand how stressful financial challenges can be, and we are here to guide you through this legal process to help you find a path toward financial recovery.

Understanding Chapter 13 Bankruptcy

Chapter 13 bankruptcy is designed for individuals who are struggling with debt but have a regular income and can pay back a portion of their debts over time. Unlike Chapter 7, which can result in the liquidation of assets, Chapter 13 allows you to keep your property and restructure your debts. This means that you can make monthly payments based on what you can afford, usually over three to five years, instead of being required to pay the entire amount owed in a lump sum. It provides a way to catch up on missed mortgage payments, eliminate some unsecured debts, and avoid foreclosure, wage garnishments, and other collection actions.

Who Is Eligible for Chapter 13 Bankruptcy?

To file for Chapter 13 bankruptcy, you must meet certain requirements. You need to have a steady income, as the court will need to confirm that you can afford the repayment plan. Additionally, there are limits to the amount of debt you can have. The total amount of secured debts (like mortgages or car loans) and unsecured debts (like credit card balances or medical bills) must fall below certain thresholds, which are adjusted periodically. For business owners, while businesses themselves cannot file under Chapter 13, sole proprietors or self-employed individuals can file for Chapter 13 bankruptcy to reorganize their personal and business debts together.

The Chapter 13 Repayment Plan

One of the main components of Chapter 13 bankruptcy is the repayment plan. This plan is a court-approved agreement that outlines how you will repay your creditors over the course of the bankruptcy. The amount you will pay each month is determined by your income, living expenses, and the amount of debt you have. In many cases, you will not have to repay the full amount of unsecured debt, but the court will ensure that you make a reasonable effort to repay as much as possible based on your financial situation. For business owners, the repayment plan can also help reorganize debts related to the business, allowing you to continue operating without the threat of business closure.

Benefits of Chapter 13 Bankruptcy

Filing for Chapter 13 bankruptcy comes with several benefits that can provide you with much-needed relief. First, it stops creditors from pursuing collection actions, including wage garnishments, lawsuits, and foreclosure. Second, it gives you time to catch up on delinquent mortgage or car loan payments, which can help you avoid losing your home or vehicle. Chapter 13 also allows you to discharge some unsecured debts, such as credit cards or medical bills, once the repayment plan is completed. Finally, the process offers more flexibility than Chapter 7, especially for individuals who want to protect their property and assets.

Challenges of Chapter 13 Bankruptcy

While Chapter 13 can be a helpful tool for managing debt, it is not without its challenges. The process requires you to commit to a long repayment period, which can last anywhere from three to five years. This means that you will need to have consistent income and discipline to stick to the plan. Furthermore, certain debts, such as student loans or child support, cannot be discharged under Chapter 13. You will also need to pay all of your disposable income into the repayment plan, which can leave you with limited resources for other expenses. It’s important to understand that Chapter 13 bankruptcy is not an easy fix, but it is a way to regain control of your financial future.

Why You Need Our Arlington Chapter 13 Bankruptcy Attorneys

Navigating Chapter 13 bankruptcy on your own can be complicated, especially when dealing with the legal intricacies of the repayment plan and eligibility requirements. That’s where our experienced Arlington Chapter 13 bankruptcy attorneys can make all the difference. At McCarty-Larson, PLLC, our team is dedicated to helping individuals and business owners in Arlington, TX, understand the bankruptcy process and ensure that their cases are handled with care and attention to detail. We will work closely with you to evaluate your financial situation, help you develop a manageable repayment plan, and guide you through each step of the process to secure the best possible outcome for your future.

Common Mistakes People Make When Filing for Chapter 13 Bankruptcy

Filing for Chapter 13 bankruptcy can be a complex and overwhelming process. It’s not uncommon for individuals to make mistakes along the way, which can cause delays, complications, or even result in a case being dismissed. At McCarty-Larson, PLLC, we work with clients in Arlington, TX to navigate the Chapter 13 bankruptcy process, and we want to help you avoid some of the most common mistakes people make.

Not Understanding How Much You Can Afford to Pay

One of the first steps in a Chapter 13 bankruptcy case is creating a repayment plan. This plan outlines how much you will pay back to creditors over a period of three to five years. A common mistake is overestimating the amount that can be paid each month. It’s important to have a clear understanding of your income and expenses before deciding on the repayment plan. If the monthly payment is too high, it may cause financial strain, while setting it too low could lead to your case being dismissed. Working with a professional to determine the right amount can help ensure that your plan is realistic and manageable.

Failing to Include All Debts in the Bankruptcy Filing

Another common mistake is failing to list all debts when filing for Chapter 13 bankruptcy. If you forget to include certain debts, those creditors will not be covered by the repayment plan, and you may still be responsible for them after your case is completed. Make sure to thoroughly review your financial situation and include all debts, including credit cards, medical bills, and personal loans. Being thorough upfront can prevent surprises later.

Ignoring the Importance of Timely Payments

Once you have a Chapter 13 repayment plan in place, it is crucial to make all payments on time. Missing payments can lead to serious consequences, such as the dismissal of your case or a modification of your repayment plan. Even if you are experiencing financial hardship, it’s important to stay in communication with the bankruptcy court and your attorney to discuss possible adjustments. Consistent and timely payments are essential to the success of your case.

Not Keeping Proper Records

Throughout your Chapter 13 bankruptcy process, it’s important to keep accurate records of all financial transactions. This includes maintaining receipts, bills, and bank statements. Failing to keep proper records can lead to confusion and potential problems with your case. If you ever need to prove a payment or provide additional documentation, having a clear record of all your financial dealings will make the process much smoother.

Overlooking the Need for Post-Bankruptcy Financial Management

After completing a Chapter 13 bankruptcy case, many individuals make the mistake of not focusing on long-term financial health. While the bankruptcy may have discharged certain debts, it’s important to continue practicing good financial habits to avoid falling back into debt. Managing your finances responsibly and staying within your means can help you build a stronger financial future. Our team can provide guidance on the steps to take after bankruptcy to help you move forward.

Arlington Chapter 13 Bankruptcy Client Story

This client story is for educational purposes only. John had always been the kind of man who believed hard work could solve anything. For years, he worked long hours at a local factory, doing everything he could to provide for his wife and kids. But life has a way of throwing curveballs, and for John, it came in the form of unexpected medical bills and a series of car repairs that drained his savings. Despite his best efforts, the debt began to pile up. Each month, it seemed like the bills grew higher, and the stress started to weigh on him like an anchor. At first, John tried to make the payments. He used his credit cards to cover basic living expenses, but that only made things worse. He’d receive a paycheck and, before he knew it, it was already gone—divided between the bills he couldn’t keep up with. His credit score tanked, and soon, the collection calls started. Every ringing phone became a reminder of his failure, and his once peaceful home now felt like a place of constant tension. His marriage was strained, his sleep was disrupted, and he started to lose hope that things could ever get better. One particularly tough evening, John sat at the kitchen table, his hands trembling as he looked at the stack of unopened bills in front of him. It felt like a never-ending cycle. The bills, the pressure, the worry—it was all too much. He thought about his children and how his financial struggles were affecting their lives. How could he give them the future they deserved when he couldn’t even manage his own? That’s when a friend mentioned McCarty-Larson, PLLC, Arlington Chapter 13 Bankruptcy Attorneys. At first, John was hesitant. Bankruptcy felt like a last resort, and the thought of it brought up feelings of shame. But as the days passed, the weight of his situation only grew heavier, and he realized he couldn’t keep going on this way. He needed help. When John called McCarty-Larson, he was nervous about what would happen next. The idea of filing for bankruptcy felt like admitting defeat. But from the moment he walked into their office, he was met with a team of compassionate lawyers who made him feel understood. They listened to his story without judgment and immediately put him at ease. They explained that Chapter 13 bankruptcy wasn’t about giving up, it was about finding a solution that would protect his home, keep his car, and allow him to repay his debts in a way that made sense for his financial situation. The McCarty-Larson team showed John that he didn’t have to lose everything. They helped him put together a repayment plan that fit within his budget, offering him a realistic path forward. Unlike other forms of bankruptcy, Chapter 13 allowed John to reorganize his debt and create a plan that would allow him to pay off what he owed overtime without losing his home or his car. They were there every step of the way, explaining each part of the process and answering all of his questions, no matter how small they seemed. In the weeks that followed, John began to feel a sense of relief he hadn’t felt in years. The constant worry and the sleepless nights started to fade. As McCarty-Larson, PLLC worked through the details, John realized that filing for Chapter 13 was not a sign of failure, it was a way to take control of his situation and protect his future. The plan was manageable, and he could finally see a way out of the financial mess he had found himself in. John made the decision to act, and with McCarty-Larson’s guidance, he filed for Chapter 13 bankruptcy. It wasn’t an easy process, but with the right help, it felt like a new beginning. His lawyer at McCarty-Larson handled all the legal details, making sure everything was filed correctly and on time, so John didn’t have to worry about missing a step. As months passed, John watched as his debt shrank, and his financial situation slowly began to stabilize. He was able to make regular payments under the Chapter 13 plan, and the burden of debt that had once seemed insurmountable was now manageable. The fear of losing his home, his car, and everything he had worked for started to fade. Instead, he felt a renewed sense of hope, a feeling he hadn’t had in a long time. Looking back, John realized that reaching out for help was the turning point in his life. Without McCarty-Larson, PLLC, he would have continued down the path of stress, anxiety, and financial ruin. They didn’t just help him through the legal process, they gave him a chance to rebuild. They showed him that bankruptcy wasn’t about defeat, but about starting fresh.

How We Can Help You

If you are struggling with overwhelming debt and need a fresh start, McCarty-Larson, PLLC is here to help. Our team of experienced Arlington Chapter 13 Bankruptcy Attorneys understand the challenges you are facing. Chapter 13 bankruptcy offers a way to manage your debt through a structured repayment plan, allowing you to keep your assets while making affordable payments over time. We take the time to listen to your situation and provide the guidance you need to make informed decisions about your financial future.

Schedule Your Appointment Today

Dealing with financial stress can be overwhelming, but you don’t have to go through it alone. The sooner you take action, the sooner we can help you find relief. Reach out to McCarty-Larson, PLLC today to schedule a consultation with one of our Arlington Chapter 13 Bankruptcy Attorneys. We will discuss your options and determine the best path forward for you. Call us now and take the first step toward a brighter financial future