While you can file for Chapter 13 bankruptcy protection, you will not always get approved. One former lawmaker learned this the hard way when his Chapter 13 repayment plan was rejected this week in Virginia.
According to court documents, the former lawmaker and his wife filed for bankruptcy protection last year but their repayment plan was denied. In their original documents, the two listed $600,000 in debts. Among their creditors were the commonwealth, the Internal Revenue Service and various credit card companies.
Since the repayment plan was rejected, the two are not protected under Chapter 13 bankruptcy. This means that the automatic stay will be lifted and creditors will be allowed once again to recoup payments. This does not bode well for the husband who has already been found guilty of extortion and bribery. He was recently sentenced to 9.5 years behind bars in a federal prison, to be served next year.
Need help filing for Chapter 13 in Houston, Texas? Now is the time to contact a Houston Chapter 13 lawyer from our law office who can help you with your petition and your repayment plan.