A lot of people don’t like to discover that they only qualify for a chapter 13 bankruptcy instead of the chapter 7 version of this type of debt relief. With a chapter 13 bankruptcy you are expected to pay back some of your debt according to an approved payment plan. This form of bankruptcy can be the best way of getting back on your financial feet, and there really is a lot of debt leniency involved with it.
You may be able to cram down some of the debts you owed. This is applicable to some of the debt that is secured. What it will do is reduce the amount of the debt owed according to its value, instead of what the actual debt is. Then the balance owed outside of the valued amount now becomes an unsecured debt, and is handled in the bankruptcy according to the unsecured debt rules.
There are some good benefits to this as it should help to reduce the interest rate and you are able to make the payments according to the value set for the property, through your payment plan that has been worked out for your chapter 13 bankruptcy. Usually the payment plan is spread out over three to five years, so there is a good possibility that your payments for this property will be quite low and more manageable.
It is important that you use the services of a bankruptcy attorney in Houston who will ensure that if there is any possibility to cram down any of your secured debts that this will be taken care of in your bankruptcy proceedings.