Chapter 13 Bankruptcy Lawyer Sherman, TX
If you are behind on your mortgage, overwhelmed with credit card bills, or have had your wages garnished, Chapter 13 bankruptcy may give you a path forward that doesn’t require losing everything you’ve built. This chapter lets you reorganize what you owe into a structured repayment plan, usually three to five years, while protecting your home, your car, and your income from creditors. At Leinart Law Firm, we have helped individuals across North Texas get real relief from debt. Since 2005, our Sherman, TX Chapter 13 bankruptcy lawyer has filed thousands of cases for clients. Contact us today for a free consultation.
Why Choose Leinart Law Firm for Chapter 13 Bankruptcy in Sherman, TX?
Deep Roots in Sherman and North Texas
Marcus Leinart grew up in Sherman, Texas. He founded Leinart Law Firm in 2005 and earned his J.D. from Texas Tech University School of Law in 1995. Our bankruptcy lawyer in Sherman, TX has spent more than 20 years representing individual debtors in the community and beyond. He is admitted to practice in the U.S. District Court for both the Northern and Eastern Districts of Texas, which includes the bankruptcy courts that serve Grayson County.
Experience Where It Counts
Our attorneys have filed thousands of bankruptcy cases over their combined careers. Leinart Law Firm represents only consumers and individuals, not corporations nor lenders. We know exactly how Chapter 13 trustees in the Northern District of Texas operate, what plan confirmation requires, and how to structure a repayment proposal that actually gets approved.
We have helped clients in Sherman, TX and throughout Grayson County stop foreclosure, organize their mortgage payments, eliminate unsecured debt, and keep their vehicles or other property. The automatic stay that goes into effect the moment you file is one of the most powerful tools in bankruptcy law, and we use it reliably on our clients’ behalf.
Free Consultations and No Upfront Costs
We offer free consultations for every Chapter 13 case. We’ll review your financial situation, discuss your options, and give you an honest answer about whether Chapter 13 makes sense for your situation, or whether something else might serve you better. There are no obligations by simply learning more about how we can help.
What Our Clients Say
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“Dealing with debt has been very stressful. But, Jim Morrison and all of the Leinart Law Firm staff have been professional and compassionate. I felt like they all genuinely care and treated me with kindness and respect. I highly recommend them!!” — Melanie Richards
Read more reviews on our Google Business Profile.
Types of Chapter 13 Bankruptcy Cases We Handle in Sherman
Chapter 13 is not a one-size-fits-all filing, as the situations that lead people into this predicament all have different contributing factors. Here are examples of tasks and topics that we spend most of our time handling:
- Stopping foreclosure. If your lender has scheduled a foreclosure sale, filing Chapter 13 can halt the process immediately through the automatic stay. The automatic stay in bankruptcy stops most collection actions, giving you time to catch up on arrears through a court-approved plan. This is one of the most common reasons Sherman homeowners file.
- Wage garnishment relief. Texas law limits most wage garnishments, but federal and tax debts don’t fall under those protections. If your paycheck is being taken, a Chapter 13 filing ends that garnishment.
- Mortgage arrears and loan catch-up. Chapter 13 allows you to spread out past-due mortgage payments over the life of your plan, which can be three to five years. You make regular payments going forward and catch up on what you owe through the plan.
- Car repossession prevention. If your vehicle has been repossessed or you’re behind on payments, Chapter 13 can help. In some cases, a cramdown may be available, reducing the loan balance to the vehicle’s current market value. Our article on keeping your car during bankruptcy covers what to expect.
- Tax debt reorganization. Certain tax debts, particularly older income tax debts that meet specific criteria, can be addressed in a Chapter 13 plan. Non-dischargeable taxes can be repaid over time without penalties continuing.
- Credit card and unsecured debt. Unsecured creditors generally receive only what you can afford after secured obligations and living expenses are covered. Many clients end up paying pennies on the dollar toward credit card balances, with the remainder discharged at plan completion.
Texas Legal Requirements for Chapter 13 Bankruptcy
Chapter 13 is governed primarily by federal law under Title 11 of the United States Code, but Texas exemptions play a major role in how the process works for debtors here. To file Chapter 13 in Sherman, your case will be reviewed in the U.S. Bankruptcy Court for the Eastern District of Texas.
To qualify, you must have regular income and your debts cannot exceed the statutory limits set under 11 U.S.C. § 109(e). As of recent updates, those limits are approximately $465,275 for unsecured debt and $1,395,875 for secured debt, though these figures adjust periodically. You also must complete an approved credit counseling course within 180 days before filing, per 11 U.S.C. § 109(h).
Texas allows debtors to choose between federal exemptions and state exemptions, which is a choice that significantly affects what property you can protect. Texas is known for its generous homestead exemption, which can protect the full value of a primary residence in many situations. The Texas homestead exemption is one of the strongest in the country. Understanding which exemption set works best for your situation is one of the first things we analyze.
The U.S. Bankruptcy Court for the Eastern District of Texas maintains local rules and resources for Sherman-area filers. A trustee will be assigned to your case, review your proposed plan, and the court must confirm it before payments begin.
Important Aspects of a Sherman Chapter 13 Bankruptcy Case
The Repayment Plan
The centerpiece of every Chapter 13 case is the repayment plan. We can help you propose it and then the trustee reviews it, but creditors can object. The court either confirms it or sends it back to you. A well-constructed plan accounts for your actual disposable income, prioritizes secured debts and arrears, and addresses unsecured creditors appropriately. Plans that are rejected or repeatedly amended cost time, and time is often something you don’t have if foreclosure is approaching. We can talk with you about missing Chapter 13 payments and what happens if circumstances change after confirmation.
The Means Test
Not everyone qualifies for Chapter 13 or Chapter 7. The Chapter 13 means test determines your applicable commitment period (three years or five years) based on your income relative to the Texas median. If your income is above the median, you’ll be in a five-year plan in most cases. The means test calculation also affects how much goes to unsecured creditors.
The Automatic Stay
From the moment your petition is filed, an automatic stay goes into effect. That stay prohibits virtually all collection efforts, including foreclosure proceedings, repossessions, garnishments, creditor calls, and lawsuits. The effect is immediate and broad in scope. It gives you time to reorganize without creditors taking further action. For most clients facing foreclosure, this is one of the most valuable aspects of filing.
Discharge at Completion
If you complete your plan, make all required payments over three to five years, most remaining unsecured debt is discharged. Credit cards, medical bills, personal loans, and similar debts are all eliminated. However, not everything is dischargeable. Student loans, most tax debts, child support, and domestic support obligations are likely to remain. But for clients carrying significant unsecured balances alongside secured debts they want to keep, Chapter 13 is often the only tool that accomplishes both goals simultaneously.
The Role of the Trustee
A standing trustee in the Eastern District of Texas will be assigned to oversee your case. The trustee receives your plan payments, distributes them to creditors, and monitors compliance. They can object to plans they believe don’t satisfy legal requirements. Having an attorney who knows how local trustees handle these objections makes a difference in how smoothly your case moves through the process.
Contact Leinart Law Firm
If you’re considering Chapter 13 bankruptcy in Sherman, TX, the most important first step is getting accurate information about your options. We understand that the weight of debts can overpower your daily life. We are here to provide solutions so you can get a fresh financial restart. We offer free consultations, and we’ll give you an honest assessment so you know what steps to take next. Contact us to schedule your free consultation with a member of our team.