Many people filing bankruptcy in Dallas are facing many of the same issues. Death, divorce, loss of job, reduction in income, increase in the size of the family, decrease in the size of the family, medical bills, ridiculous interest rates…they all contribute to the ultimate decision of having to seek protection under the Bankruptcy Code.
Many people believe that they are not eligible to seek protection under Chapter 7, but will be forced to file a Chapter 13. To the contrary, since the law changed in 2005 the percentage of cases that we have filed under Chapter 7 versus Chapter 13 really has not changed that much. Most people who need to file a Chapter 7 are still eligible to file that Chapter, however sometimes we recommend that someone who is eligible for a Chapter 7 to file a Chapter 13 for a few different reasons.
First, a family that is behind on their mortgage and facing foreclosure can file a Chapter 13 to give them 5 years to catch up on the arrears. Also, a Chapter 13 can help someone get their car back or avoid repossession. In Chapter 13, as long as the debtor passes the Means Test like they would in a Chapter 7, then they should pay back nothing to their credit card debt unsecured creditors. For an initial consultation for free with an experienced Dallas bankruptcy attorney, please contact us for an appointment at Pelley Law Office, L.L.P. 100 Crescent Court, 7th Floor Dallas, Texas 75201 214-799-6441.