In the United States, consumers may file for chapter 13 bankruptcy if they:

§  are a U.S. resident

§  have a source of proven, regular income

§  owe less than $290,525 in unsecured debts

§  owe less than $872,550 in secured debts

Often times, people who choose to file for chapter 13 do so for two reasons.  The first reason people consider chapter 13 is because they make too much to file for chapter 7 according to the means test.   Anytime people choose to pursue bankruptcy, they must take the means test.  This test determines which type of consumer bankruptcy people may file for. 

The second reason people may choose to file for chapter 13 is because they wish to repay the debt they owe instead of simply having it discharged.  People who file for this type of bankruptcy will have 3 to 5 years to repay the debt that they owe to their creditors.

If you have additional questions about chapter 13 or bankruptcy eligibility requirements in Texas, contact the Malaise Law Firm and speak with a San Antonio bankruptcy attorney from our team.

People who choose to file for consumer bankruptcy, whether it is Chapter 7 or Chapter 13, often feel bittersweet.  That is normal and to be expected.  Anytime we have to confront our finances, it can be nerve wrecking.  However, when we don't have the financial means to pay our bills and are waist deep in debt, we must remember that filing for bankruptcy is a responsible choice. 

If you are thinking about filing for bankruptcy in San Antonio, you do not have to go through the process on your own.  Instead, work with a San Antonio bankruptcy attorney and you will receive the help you need.  Here are three ways a bankruptcy lawyer can be of assistance:

-  A bankruptcy lawyer can help you with all of your bankruptcy related paperwork and take this stress off of your plate.

-  A bankruptcy attorney can provide you with continual support so you do not feel alone or abandoned during the bankruptcy process.

-  A bankruptcy lawyer can put an end to persistent phone calls from collectors and creditors so you can focus on completing your bankruptcy without being harassed.

Contact the Malaise Law Firm to learn how we can help you!

The “Co-Debtor Stay,” also known as the “Co-Debtor Automatic Stay,” is a feature of a Chapter 13 Bankruptcy designed to protect a debtor by insulating him from indirect pressures from his creditors exerted through friends or relatives.  The Co-Debtor Stay stops all collection actions against any individual who is obligated on a consumer debt owed by the debtor.  The Co-Debtor Stay continues until the Chapter 13 case has concluded.

The Co-Debtor Stay is not a direct protection intended for the co-debtor.  The debtor’s Chapter 13 Bankruptcy will not discharge the co-debtor’s responsibilities to the creditor.  It will, however, prevent collection action by the creditor against the co-debtor (e.g. lien perfection or even adverse notation on the co-debtor’s credit report) during the pendency of the Chapter 13 case. 

The Co-Debtor Stay does not prohibit collection on a debt incurred in the ordinary course of business by the debtor.  Additionally, tax debt is generally not considered a consumer debt.  It is important to note that the Co-Debtor Stay does not apply at all to Chapter 7 Bankruptcy cases.

The Co-Debtor Stay is effective immediately upon the filing of the debtor’s Chapter 13 petition and continues until the case is closed, dismissed, or converted to Chapter 7 or 11.  The Bankruptcy Court can also modify or terminate the Co-Debtor Stay upon the motion of a creditor.  The creditor may be successful in this type of motion if the codebtor received “consideration” for the debt (e.g. you cosigned a car loan for your brother, who actually owns the car), if the debtor’s Chapter 13 plan proposes to not pay the debt, or if the creditor’s interests would be irreparably harmed by continuation of the Co-Debtor Stay.

A knowing violation of the Co-Debtor Stay is contempt of court and punishable by damages, including attorney’s fees.  Any collection action taken by a creditor in violation of the co-debtor stay is void. 
The Co-Debtor Stay is a powerful tool to prevent collection action in Chapter 13 Bankruptcy.  If you are contemplating a bankruptcy filing and have co-debtors, consult with an experienced bankruptcy attorney.  An experienced bankruptcy attorney can explain your options and work with you to find the best result.