Austin Chapter 13 Bankruptcy Limitations
Filing for bankruptcy under Chapter 13 can have many benefits for people struggling with large personal debts. However, it is very important to note that it is not an instant cure for financial problems. If you are considering an Austin chapter 13 bankruptcy, you need to be informed about the limitations as well as the positive effects.
It is not always easy to weigh the many pros and cons of bankruptcy. For experienced advice about your individual financial situation, call the offices of Austin Chapter 13 bankruptcy lawyers Slater, Kennon & Pugh Ltd.LLP, at 512-338-1100.
Some of Chapter 13’s limitations include:
- Length of time. Chapter 13 repayment plans are scheduled for 3 or 5 years. It can be difficult to wait this length of time to get out of debt, although it is certainly worth it in the end.
- Not everyone is eligible. If you have unsecured debts about $336,900 or secured debts above $1,010,650 (numbers subject to change), you may not be able to file for bankruptcy. You can also be ineligible if you have had another bankruptcy claim dismissed recently, or in certain other circumstances.
- Non-dischargeable debts. Even if some of your debts are discharged in full or part, you will still be responsible for secured debts. Secured debts generally include bank loans, child support, alimony, and other court-ordered payments. Some of your debts may even be labeled priority, such as your back taxes. You will need to repay these debts as soon as possible.
Fortunately, an experienced Austin Chapter 13 bankruptcy lawyer can help you manage these drawbacks if you decide that bankruptcy is right for you.
Austin bankruptcy attorneys Slater, Kennon & Pugh Ltd.LLP, understand the numerous challenges of living with debt. We want to help you get your financial life back in order. Contact our offices today by calling 512-338-1100.