Bankruptcy

Financial debt is a reality that many consumers face but often ignore. The bills won't vanish into thin air. The notices and collection calls continue. What does a person do when faced with overwhelming debt, harassing phone calls from creditors, failed debt management settlements? The effect on your credit is important and there are steps you can take to regain control over your finances. There are different types of bankruptcy available that may fit your financial situation. The two main types for consumers are Chapter 7 and Chapter 13. Chapter 7 allows you to liquidate your assets to pay off your debt. A debt falls into two categories, secured or unsecured. A secured debt is secured by collateral such as a mortgage and student loans. Credit cards, medical bills, lines of credit, and personal loans are unsecured debt. Alimony, child support, and most student loans are debts that cannot be discharged.

Chapter 13 is a court approved reorganization of your debts. It allows individuals and families with regular income to make monthly installments to satisfy unsecured debt based on a 3 or 5 year plan. Contact us to help you determine an estimate of how much you would have to pay into your plan based on your income.

Dispelling the myths about Bankruptcy

Bankruptcy is just "filling out forms, and I don't need attorney"
Filing Bankruptcy will ruin my credit
You are irresponsible and should be embarrassed about filing Bankruptcy

Bankruptcy in Texas

Bankruptcy is regulated under federal guidelines, but laws such as exemptions vary by state. An exemption protects certain types of property from being taken by creditors. In Texas, your home is protected because of the homestead exemption. Property or valuable items in excess of the allowed exemptions must be turned over.

Types of Exemptions in Texas

Tax refunds (generally)
401(K), pensions, profit sharing
Home
Vehicle

Non-covered Exemptions

ATV, Motorcycle
Credit Cards

Meet with an attorney to review your case in detail because these laws often change.

Weighing Your Options

In situations where you are severely behind on your bills, your debt is more than your disposable income, and you're completely out of options, filing bankruptcy may be the only alternative to starting over with a fresh clean slate. Most people want to know, "how will it impact my credit?" Chances are if you are considering filing, your credit is already in serious trouble. Bankruptcy can give you a new lease on life by providing the financial relief you need to get back on your feet.

Debt Consolidation vs. Bankruptcy

Allowing a consolidation company to negotiate or settle your debt can be costly. If the negotiation efforts fail, you are still left with excessive debt and calls from creditors. Most importantly, precious time is lost. Attempting to settle with each creditor is an exhausting process. Be careful, even if you settle a debt, the creditor must file a C-1099 Cancellation of Debt to the IRS. This amount will be counted as income on your taxes. Contact an experienced Bankruptcy Attorney who knows, understands, and cares about helping you.

Reasons to Consider Bankruptcy

With the help of an experienced and qualified Attorney you can:

Stop wage garnishments
Stop debt collectors from calling you and sending you letters, notices, and bills.
Eliminate credit card debt
Protect your car
Keep your home
Have Peace of Mind

Reasons why bankruptcy may be the best decision for you and your family:

Lost your job or received a pay cut
Unexpected debt
Medical bills
High interest rates
Bank loans and Student loans
Payday loans
Debt consolidation or Mortgage Modification failed

Filing a Chapter 7 Bankruptcy

Chapter 7 is also called "total bankruptcy" or "liquidation allows an individual who qualifies to discharge surrendered mortgages, car loans, and credit cards, medical bills, personal loans, payday loans, repossession deficiencies, foreclosure deficiencies, and some tax liabilities. Liquidation means that the non-exempt property is seized, any proceeds from the sale of that property is used to pay off your creditors. Once the debt is discharged, these creditors may not pursue further collection against you for that debt. A Chapter 7 bankruptcy takes about 4 to 5 months to complete. You must meet eligibility requirements based on your assets and income to file. Please contact me for a free and confidential phone consultation to determine whether you qualify.

Which Bankruptcy May fit your Personal Financial Situation?

Filing a Chapter 11 Bankruptcy

Chapter 11 is known as a "reorganization." This type of bankruptcy is the mostly filed by a company or organization that wants to continue business operation, but is experiencing financial hardship.

Filing a Chapter 13 Bankruptcy

Chapter 13 is a debt adjustment or reorganization of your debt. This type of bankruptcy is designed for individuals with income who would like to pay some or all of their debts from their current income in installments over a period of 3 or 5 years depending on your circumstances. If you are facing foreclosure, repossession, tax garnishments, lawsuits, and levies, Chapter 13 may be right for you. To qualify, your debt must not exceed the maximum allowed limit. You must also prove your ability to pay under a Chapter 13 plan. After completion, your debts are discharged except for child support obligations, most student loans, certain taxes, most criminal fines, and debts not listed in your bankruptcy plan.

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