What is Chapter 13?

A solution to financial problems

Chapter 13 may be the option for you.  Want to discuss your situation?  Schedule a FREE consultation at 915-566-4300 or click below.

How to file a Chapter 13 Plan?

  • Are you eligible? - You are if you file as an individual or as the owner of a small business unless you are a stockbroker or commodity broker.

  • Individuals - If you make enough income to support a three-to-five-year repayment plan and to cover a practical living budget, you can file for debt relief under Chapter 13.

  • Businesses - As a small business owner you must owe no more than $394,725.00 in unsecured and $1,184,200.00 in secured debts in order to file a Chapter 13 plan.  You must be able to repay at least part of these debts within three to five years under your Chapter 13 plan.

  • Filing a plan - You need the guidance of a lawyer to help you decide whether Chapter 13 is the right solution for you.  If it is, the attorney can prepare a plan, file it with the U.S. Bankruptcy Court to start Chapter 13's benefits working for you.

Chapter 13 Benefits:

  • Your payments are carefully budgeted and are usually lowered.

  • The court controls the cost.

  • Creditors can no longer contact you or garnish your wages.

  • Many creditors charges are usually stopped.

  • Repossession and foreclosures are usually stopped.

  • Co-signers are usually protected.

  • The court may reject invalid claims against you.

  • Your savings and equity may be protected

  • Some unwanted contracts may be cancelled.

Questions About Bankruptcy?

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Chapter 13 Plan

  • Less embarrassment - A "light" version of bankruptcy, a Chapter 13 plan helps you pay your debts and avoid the stigma and problems accompaying a straight, or Chapter 7, bankruptcy.

  • Reduced payments to fit a budget - Under a Chapter 13 Plan, you will often find that monthly payments are reduced because the court can extend your repayment period for up to 60 months.  You sill make payments in an orderly way, but they are more likely to be payments you can afford.

  • Help from the U.S. Bankruptcy Court - You make all payments into a Chapter 13 plan with a U.S. Bankruptcy Court Trustee right here in El Paso.  This trustee makes certain your creditors receive the money and helps with financial problems that might come up during the repayment process.

  • No fees surprises - All costs, including your attorney's costs are included in the payment schedule.  Only a small fee for filing a plan is needed to put the plan into effect.

How Chapter 13 Protects You

  • Stops wage deductions - Once you file a Chapter 13 plan, creditors are under a restraining order.  They can no longer contact your employer or legally arrange to have your wages garnished.  Instead of contacting your employer, a creditor must now work through your bankruptcy trustee.

  • Stops creditors from calling - The same restraining order that goes into effect whe you file a Chapter 13 plan prevents creditors from trying to collect from you by telephone, in writing or by starting lawsuits against you.  You're instantly relieved from creditor harassment because as long as you make the payments all collection contacts goes through your bankruptcy trustee.

  • Freezes or reduces interest charges - Most of your creditors can no longer charge you the same interest rates after you file a Chapter 13 plan.  Interest charges are either reduced or eliminated.

  • Economical -  The amount you will save in interest and creditors' charges will probably be more than what you pay for your costs to file a plan.

  • Usually stops repossession and foreclosure - Chapter 13 allows you to keep possession of most property, including your home.  In most cases, the Chapter 13 plan prevents creditors from trying to repossess your car or foreclose your home.

  • Protects co-signers - If someone has co-signed on a debt with you, a Chapter 13 plan usually keep creditors from being able to make collection attempts against your co-signer.

  • Rejects invalid claims - The court may hold hearings regarding your debts, looking into them carefully, rejecting those that are unfair or unfounded.

  • Protects equity and savings - A Chapter 13 plan can help you hold onto your savings and any equity you may have in real estate, stocks, bonds and insurance policies.

  • Cancels unwanted contracts - The court may investigate canceling unwanted or unnecessary contracts, such as when you've returned merchandise you've bought or when you may have discontinued services.

Our Team

Our bankruptcy attorneys and members of our support staff are very friendly, knowledgeable and helpful.  They have received training and have a high level of knowledge in understanding bankruptcy.  They are experienced in answering questions which can save you valuable time.  Our support staff is also bilingual in English and Spanish.  Our job is to help you and we understand the stress of trying to pay bills.



We offer two types of relief under the consumer Bankruptcy Law.  Chapter 13 and Chapter 7.  Both these chapters share one important benefit which is that you will get the protection of the Federal Bankruptcy Law.  They offer other benefits which may or may not fit your situation.  To find out more please click on the buttons below to learn more about each chapter.

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