Chapter 13 Bankruptcy

If you’re struggling to keep up with debt payments and facing the possibility of losing your home or vehicle, you’re not alone. Financial challenges can happen to anyone, often due to medical bills, job loss, or unexpected emergencies. Chapter 13 bankruptcy gives individuals the opportunity to reorganize debt, keep essential assets, and create a path toward lasting financial stability.

At Pakis, Giotes, Burleson & Deaconson, P.C., we help clients in Waco, Texas, and the surrounding areas regain control of their finances through structured repayment plans under Chapter 13.

Our attorneys come from diverse backgrounds but share a passion for helping our community succeed. Reach out to us today to discuss your options and start the process toward financial recovery.

How Chapter 13 Bankruptcy Works

Chapter 13 bankruptcy allows individuals with regular income to repay all or part of their debts through a court-approved plan lasting 3 to 5 years. Unlike Chapter 7, which involves liquidation, Chapter 13 lets you keep your assets while catching up on overdue payments for secured debts such as mortgages or car loans.

Under this plan, you’ll make a single monthly payment to a bankruptcy trustee, who distributes funds to creditors according to the court-approved schedule. Once the repayment period is complete, remaining eligible debts may be discharged, providing you with a fresh financial start.

Eligibility for Chapter 13 Bankruptcy

To qualify for Chapter 13, you must have a steady source of income and debts that fall within specific federal limits. This option is ideal for individuals who are behind on mortgage payments but wish to retain their home or those seeking to consolidate debt into manageable monthly installments.

According to the U.S. Courts, Chapter 13 is often chosen by debtors who have valuable property they wish to keep, as it provides a means to cure delinquent payments over time without losing assets. Working with an experienced bankruptcy attorney helps you determine whether your income, expenses, and financial obligations align with eligibility requirements.

Filing for Chapter 13 may also halt collection efforts immediately. The automatic stay goes into effect once your case is filed, stopping creditor calls, wage garnishments, and lawsuits while your repayment plan is being reviewed.

Benefits of Filing for Chapter 13 Bankruptcy

Chapter 13 bankruptcy offers several advantages that make it a practical choice for many debtors. These benefits provide both financial relief and emotional peace of mind during challenging times.

• Asset protection: Keep your home, car, and other assets while restructuring payments to fit your financial situation.

• Debt consolidation: Make one monthly payment instead of managing multiple bills, simplifying your finances.

• Prevention of foreclosure and repossession: Catch up on overdue payments through your repayment plan to retain essential property.

• Relief from creditor pressure: The automatic stay stops harassment, wage garnishments, and collection efforts immediately.

• Debt discharge: Unsecured debts such as credit cards or medical bills may be eliminated at the end of your plan, providing long-term relief.

By choosing Chapter 13, you’re taking proactive steps to regain control and rebuild your financial foundation with a structured plan for the future.

The Chapter 13 Repayment Process

The repayment process begins with filing a petition in federal bankruptcy court and submitting detailed financial documents, including income statements, expenses, debts, and assets. Next, a repayment plan is proposed outlining how creditors will be paid over the designated term. The court and the bankruptcy trustee review this plan for approval before payments begin.

Once approved, you’ll start making payments as agreed. Missing payments can lead to dismissal of the case, so it’s crucial to stay current. Working closely with your attorney helps you remain compliant with all requirements and respond promptly to any court requests or trustee inquiries.

A key advantage of Chapter 13 is flexibility. If your financial situation changes—such as job loss or unexpected medical costs—you may be able to modify your plan. This adaptability allows debtors to maintain progress even when life circumstances shift.

Debts Covered Under Chapter 13

Chapter 13 bankruptcy helps manage various types of debts, offering structured repayment and relief over time. Below are the common debt categories included in a Chapter 13 plan:

• Secured debts: Mortgages, car loans, and other obligations backed by collateral are repaid through the plan to prevent loss of property.

• Unsecured debts: Credit cards, personal loans, and medical bills may be partially repaid or discharged at the end of your plan.

• Priority debts: Certain taxes, alimony, and child support must be paid in full under the repayment plan.

• Past-due payments: Arrears on mortgages or auto loans are included, allowing you to catch up while keeping your assets.

• Student loans: Although most student loans aren’t dischargeable, they can be included in the repayment plan to manage payments more effectively.

• Co-signed debts: Obligations with a co-signer can be included, helping protect family members or friends from collection actions while you make structured payments.

• Utility bills: Overdue utility accounts, such as electricity, water, or gas, can be included to prevent service interruptions during your repayment period.

• Business-related debts: If you’re self-employed, certain business debts that are personally guaranteed may be reorganized under Chapter 13 to support continued operations.

• Deficiency balances: If a vehicle or property was repossessed or foreclosed before filing, remaining balances may be included and managed through the repayment plan.

It’s important to note that some debts—like student loans or most taxes—are generally not dischargeable. An attorney at Pakis, Giotes, Burleson & Deaconson, P.C. can help you identify which obligations qualify and create a repayment structure that aligns with both your income and legal responsibilities.

How Our Attorneys Help With Chapter 13 Bankruptcy

Working with a knowledgeable bankruptcy lawyer can make the process less overwhelming and more effective. At Pakis, Giotes, Burleson & Deaconson, P.C., our attorneys guide clients through every stage—from filing and documentation to negotiating with creditors and attending hearings.

We help you determine eligibility, develop a feasible repayment plan, and represent you in court proceedings. Our focus is on helping you retain your assets, reduce stress, and achieve long-term financial stability. Each case receives personalized attention because every client’s situation is unique.

Attorney David N. Deaconson and our experienced legal firm take pride in helping families in Waco, Texas, rebuild their lives through practical, compassionate legal guidance. Our firm is committed to helping you move forward with confidence and clarity.

Potential Challenges and How to Address Them

While Chapter 13 offers many benefits, it also requires consistent commitment. Repayment plans last several years, meaning steady income and disciplined budgeting are essential for success. Missing payments or failing to follow court instructions could result in case dismissal.

However, with the proper legal guidance, these challenges can be managed effectively. Your attorney can help you request plan modifications if your income changes or explore alternatives such as conversion to Chapter 7 if necessary. Regular communication with your legal representative keeps your case on track and minimizes complications.

Ultimately, Chapter 13 is a valuable financial tool for individuals who need structured debt relief while protecting their property and rebuilding their financial confidence.