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Bankruptcy

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  1. What must I consider first before filing bankruptcy?

    Before filing bankruptcy, you should know your total monthly expenses and overall debt, your income amount, the value and type of assets and property you own. The type and the amount of income you have will be based on the Median Income standard which will determine whether which type of bankruptcy you will be eligible to file. 
     

 2.  What are the most common reasons people file for Chapter 7 Bankruptcy?

 

People with serious financial debt such as medical bills, overextended credit, unexpected expenses, debt due to unemployment or disability, marital problems or divorce usually file for Chapter 7 Bankruptcy. If any of these circumstances fit your situation, contact an experienced bankruptcy attorney to evaluate your case.

 

 

 3. What is Chapter 7 Bankruptcy and how long does the process take?

 

Chapter 7 is often referred to as "stratight bankruptcy because all dischargeable debts are eliminated and teh debtor receives a fresh new start. Chapter 7 bankruptcy clears your debts within about 4 months. Everyone's financial circumstances is different. We will be happy to meet with you to review your situation to determine the best solution for you.

 

 

 4. What is a Chapter 13 Bankruptcy?
 

Chapter 13 is a debt reorganization and allows you to make payments over a period of 3 to 5 years. The plan is an agreement with the court that details what your obligations are and how much you must pay each month. Chapter 13 may be the best option for you if you're delinquent on your car or mortgage, or owe the IRS. 

 

Simply put, if you want to repay all or most of your debts,and you have the income to do so, if you have nonexempt property that you want to keep that would be lost in a Chapter 7, filing Chapter 13 may be the better option for you. Contact a bankruptcy attorney who knows and understands the laws to help you determine the best plan for your financial situation.

 

 5. If my income changes, can the plan payment be changed?

 

If your income changes due to you involuntarily becoming unemployed or there has been an unforeseen change in your circumstances, contact an experienced attorney to find a solution for you.

 

 6. What should I expect after I file for bankruptcy?

 

Once the petition is filed and approved by the court, you will be granted an "automatic stay" which means that all calls and correspondence from creditors cease. Also, bankruptcy stops foreclosure and lawsuits. If the creditor does not comply, it will be held in contempt of court and is subject to fines for failure to comply.

 

 

 7. How does filing bankruptcy affect my credit score?

 

People who file bankruptcy can rebuild their credit quickly after coming out of a bankruptcy by making their payments on time. Remember, bankruptcy gives you a fresh new start.

 

 8. If I am going through a divorce how will my ex-spouse filing bankruptcy affect me?

 

No, the filing does not affect the ex-spouse credit. 

 

 

 9. How is filing Bankruptcy in Texas different from filing bankruptcy in other states ?

 

Texas exemption laws protect certain property such as your home because of the homestead exemption. Texas law allows protection of an individual with a drivers license to protect the equity in a vehicle, personal property of $30,000 or personal property for a family of $60,000. The exemption laws change frequently, consult with an attorney to review your case in detail.

 

 10. Is it necessary to have an attorney to file for bankruptcy?

 

No, it is not necessary to have an attorney to file for bankruptcy. However, bankruptcy is regulated by federal guidelines with complex code. Having an experienced qualified attorney on your side to guide you through the laws would be beneficial.

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