Chapter 13 Bankruptcy Attorney in Austin, Texas

Chapter 13 bankruptcy is the reorganization chapter. Instead of liquidating assets and discharging debt quickly, Chapter 13 proposes a repayment plan that pays creditors over three to five years while you keep your property. It is the right path when Chapter 7 is unavailable because your income is too high, when you have a home you want to save from foreclosure, or when you have tax debts, child support arrears, or other priority obligations that cannot be discharged but can be paid on a manageable schedule.

The Chapter 13 repayment plan must satisfy several requirements set by the bankruptcy code. It must pay all priority debts — including recent taxes and domestic support obligations — in full over the plan period. It must pay unsecured creditors at least what they would have received if you had filed Chapter 7 instead. And it must commit all of your disposable income — income above your allowed monthly expenses — to the plan. A bankruptcy attorney calculates these figures before filing to project what your plan payment will actually be.

For homeowners facing foreclosure, Chapter 13 is frequently the only viable legal option to save a home short of paying the entire arrears amount immediately. Filing stops the foreclosure automatically. The plan can then spread out the mortgage arrears over the full plan period — three to five years — while you resume regular monthly payments. If you complete the plan, the mortgage is current and the home is yours. The key is filing before the foreclosure sale date; once the home is sold at auction in Texas, reclaiming it becomes legally complex.

Chapter 13 also addresses debts that Chapter 7 cannot discharge. Tax debts that are too recent for Chapter 7 discharge can be paid in full through the plan at no interest on certain older taxes. Student loans, which are rarely discharged in either chapter, can be paid at a managed rate through the plan while other debts are handled simultaneously. Domestic support arrears are caught up through the plan without accumulating additional interest.

The Western District of Texas has a Chapter 13 trustee whose role is to review plan feasibility and ensure creditors receive what the law requires. Local bankruptcy attorneys who practice in this district know the trustee's requirements and how to draft plans that are confirmed at the first hearing. A plan that is rejected and requires amendment adds time and attorney fees to an already lengthy process.

We connect Austin residents considering Chapter 13 with bankruptcy attorneys who practice in the Western District of Texas. They review your income, your debts, your assets, and your specific situation — including whether saving your home or catching up on tax debts makes Chapter 13 the right choice over Chapter 7.