In Texas, consumers could face unexpected financial issues that could prevent them from submitting timely payments to their creditors. When this happens, the consumer is at risk of facing foreclosure or repossessions. Local attorneys can help these consumers file for bankruptcy and prevent Repossessions in Longview, TX today.
How Chapter 13 Can Stop Repossession
Chapter 13 allows the consumer to acquire an automatic stay for the full duration of their case to prevent creditors from starting the repossession or foreclosure process. Through chapter 13, the account is added to the case, and the consumer has the full duration of their claim to pay off the debt.
Starting a Claim
To start a bankruptcy claim, the consumer must provide evidence of their income, which includes all financial records for the six months prior to filing. This documentation allows their attorney to calculate their annual income to determine eligibility. To establish eligibility, the consumer must have an income that is higher than $53,035. If their income is lower, they qualify for chapter 7 only.
The Meeting of Creditors
The meeting of creditors is conducted in a courtroom. During this hearing, the creditors testify as to whether or not they want their accounts included in the claim. It is during this hearing that the judge determines what debts are discharged and no longer the consumer’s responsibility. Once the debt is discharged, the creditor cannot seek any additional payments from the consumer.
What Is Expected of the Consumer
The consumer must submit their monthly payments as directed by the court. They are restricted from opening any new accounts during their case, and they must use all disposable income to pay off debts that weren’t included in their claim.
In Texas, consumers could acquire a second chance through bankruptcy. These claims place all their debts into one account and allow them to submit one payment each month. For consumers who have financial difficulties, this opportunity allows them to avoid foreclosure and repossession. Consumers who are facing potential repossessions in Longview, TX should contact William H. Lively, J.R. P.C. today for more info.
