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San Antonio Bankruptcy and Divorce Attorney

When a family is struggling with debt, Chapter 13 bankruptcy can often be a good solution that will allow them to consolidate certain debts into a single payment plan, discharge debts after the payment plan is completed, and maintain ownership of their home and other property. However, if a married couple decides to get a divorce before they have completed their Chapter 13 repayment plan, they will need to determine how their bankruptcy case will be affected and what steps they can take to address their outstanding debts.

Options for Chapter 13 Bankruptcy During a Divorce

Couples who have filed for Chapter 13 bankruptcy and begun making payments on a repayment plan have multiple options if they choose to get divorced. These include:


San Antonio Bankruptcy Attorney

Debt is an issue that affects many people in the United States, and if your family is struggling to address ongoing expenses while also paying the debts that are owed, you may be considering bankruptcy. This option can provide you with relief from your debts and allow you to receive a fresh start and maintain ongoing financial success. As you prepare to file for bankruptcy, you will want to take the correct steps to ensure that all of your debts will be addressed properly, while also making sure you do not do anything that will affect your ability to receive debt relief.

Steps You Can Take to Protect Yourself When Preparing for Bankruptcy

  • Gather financial information - You will need to fully understand all of the debts you owe, as well as the assets you own, all forms of income, and your ongoing expenses. By gathering statements from creditors and checking your credit report to uncover any debts you may not be aware of, you can be sure all of your debts will be included when you file for bankruptcy. Depending on whether you will be filing for Chapter 7 or Chapter 13 bankruptcy, you will need to understand whether you will be required to turn over any non-exempt assets or how much disposable income you may have to put toward a repayment plan.


San Antonio Mortgage Debt Relief AttorneyHome mortgages are some of the most significant forms of debt for many consumers. A mortgage is an investment, and the longer a person makes payments, the more equity they will own in their home. Because of this, many homeowners will worry about what will happen to this equity if they get behind on mortgage payments. In some cases, homeowners may have taken out second or third mortgages in order to complete home repairs or pay other costs. For those who are struggling to pay what is owed while also addressing other types of debts and covering their regular expenses, bankruptcy may seem like a good option. However, when filing for bankruptcy, a homeowner will want to understand the best approach to take and determine whether they will be able to maintain ownership of their home.

Addressing Mortgage Debt Through Bankruptcy

The options available to a homeowner will depend on the value of their home, the amount remaining on their primary mortgage and any junior mortgages, and whether they have defaulted on mortgage payments. If a homeowner has remained current on their mortgage payments or is able to catch up on any missed payments, they may be able to complete a Chapter 7 bankruptcy. This will allow them to discharge other types of debts, such as credit debts or medical debts. Texas law provides an unlimited homestead exemption, so a homeowner will be able to maintain ownership of the equity in their home while receiving a fresh financial start.

If a homeowner has gotten behind on mortgage payments, Chapter 13 bankruptcy may be a better option that will allow them to avoid foreclosure. In these cases, the amounts that are past due, including missed payments, late fees, or other penalties, will be included in their Chapter 13 repayment plan. Once the plan has been completed, the homeowner will be current on their mortgage, as long as they have continued to make all monthly mortgage payments. Other debts that were included in the repayment plan will be discharged once the plan is completed, providing the homeowner with some financial relief that will allow them to meet their ongoing needs going forward.


Kerrville Debt Relief AttorneyIn the United States, it is far too easy for a family to be burdened with overwhelming debt. Even if a family does everything they can to manage money as carefully as possible, they may experience unexpected difficulties that put them in an impossible financial position. In many cases, these debts occur because of medical bills, but a family may also struggle due to the loss of a job, a health condition that prevents a person from working, fire or natural disaster, or any number of other issues. When debts become so large that they will be impossible to repay, different forms of debt relief may be available, including bankruptcy. By understanding the benefits of different types of bankruptcy, a family can determine their best options for receiving a fresh financial start and moving on from this difficult situation.

Benefits of Chapter 7 Bankruptcy

A Chapter 7 bankruptcy may be the best approach for many families. It offers the ability to completely eliminate any debts owed by a family, allowing them to get a true fresh start. This type of bankruptcy can often be completed within a few months, and by relieving them of the requirement to repay debts, it will allow a family to begin rebuilding their finances while meeting their ongoing needs.

However, families should be aware that during a Chapter 7 bankruptcy, they may be required to turn over certain assets, which will be liquidated to repay as much of their debts as possible. Certain types of assets are exempt from liquidation, but a family may be unable to maintain ownership of any property that has been used as collateral in secured debts. Chapter 7 bankruptcy may not be able to prevent the foreclosure of a home or the repossession of a vehicle or other property.


Schertz Bankruptcy LawyerPeople who are struggling to repay the debts they owe while also addressing their regular expenses and daily needs have a number of options for debt relief, including filing for bankruptcy. However, some people may be worried that if they file for bankruptcy, they will lose certain assets, such as their home, their vehicles, money saved in a bank account, or other personal property. Fortunately, many debtors can qualify for a no-asset bankruptcy in which they will not be required to turn over any property. By working with a skilled and experienced bankruptcy attorney, a person can determine whether this type of bankruptcy is available to them.

Assets Exempt From Liquidation in Chapter 7 Bankruptcy

A debtor may file for Chapter 7 bankruptcy, which will allow their unsecured debts to be discharged once the bankruptcy process is completed. This type of bankruptcy is often known as a “liquidation bankruptcy,” since some debtors will be required to turn over certain assets, which will be liquidated so that creditors can receive payment for some of the debts that are owed. However, in a no-asset Chapter 7 bankruptcy, a debtor will not be required to turn over any assets.

If a case is a no-asset bankruptcy, it does not mean that the debtor does not own any assets. Instead, it means that exemptions to liquidation will apply for all of the assets a debtor owns. Property that is exempt will not need to be turned over, and a person will be able to maintain ownership of these assets after the bankruptcy is complete. 


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