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A Chapter 13 bankruptcy can remain on your credit report for up to 10 years, and you will lose all your credit cards. Bankruptcy also makes it nearly impossible to get a mortgage if you don't already have one.
A Chapter 13 petition for bankruptcy will likely necessitate a $500 to $600 monthly payment, especially for debtors paying at least one automobile through the payment plan. However, since the bankruptcy court will consider a large number of factors, this estimate could vary greatly.
To submit your petition to the court, you need to pay a filing fee. Currently, the filing fee depends on which bankruptcy chapter you file: Chapter 7 Bankruptcy: $335.00. Chapter 13 Bankruptcy: $310.00.
Priority claims must be fully paid. They include the bankruptcy filing cost, some taxes and child support. Secured debts with collateral, like a house or a car, also must be paid in full in most cases. Unsecured debts, like credit cards, are negotiable.
To initiate the filing process, your attorney will submit a bankruptcy petition to the Texas district court closest to you. As soon as your forms are submitted, the court will grant you an automatic stay the prohibits your creditors from engaging in collection activities such as: Wage garnishment to collect IRS debt.