How do I know if I am eligible for Chapter 7 or Chapter 13 bankruptcy?

To know if you are eligible for Chapter 7 or Chapter 13 bankruptcy in Texas, you must first understand the differences between them. Chapter 7 is more commonly known as liquidation bankruptcy, which allows a person to discharge some or all of their debt. Chapter 13 is reorganization bankruptcy, which provides individuals with the opportunity to restructure their debts and create a repayment plan in order to pay off their creditors. If you are considering filing for bankruptcy in Texas, you will need to consult with a bankruptcy attorney or financial advisor to discuss which type of bankruptcy best suits your needs. Generally, Chapter 7 is the most straightforward and is available to anyone earning less than a certain annual income, which is determined by their household size and median income in their state. To qualify for Chapter 13, you must have a sufficient and steady income stream. This means that you can make regular payments into a repayment plan over the course of three to five years. Chapter 13 can also help you avoid foreclosure on your home, as it provides you an opportunity to catch up on overdue mortgage payments. Ultimately, deciding which bankruptcy option is best for you will depend on your unique financial situation. It is highly recommended that you discuss your case with a qualified bankruptcy attorney in Texas to ensure that you receive the most beneficial outcome for your particular circumstances.

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How do I know if I am eligible for Chapter 7 or Chapter 13 bankruptcy?

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