TEXAS BANKRUPTCY ATTORNEYS
Are you in Drowning Debt?
Has your debt become unmanageable? Are you constantly getting collection phone calls and letters? Have you been sued by a creditor or debt collector? If you have fallen behind and just cannot catch up on your debt and other obligations then Bankruptcy protection may the solution for you.
Every year almost a million people find themselves in the same situation and file for bankruptcy protection across America. You may be able to benefit and take advantage of the federal bankruptcy laws to potentially eliminate credit card debts, medical bills, personal loans, and other debts.
We help consumers file Chapter 7 Bankruptcies and Chapter 13 bankruptcies across Texas. Which bankruptcy is ideal for your circumstances depends on your current situation, your income, expenses, what assets you own, and the type of debt outstanding.
The moment you file your bankruptcy petition with the Bankruptcy Court the Court promptly issues an automatic stay. An automatic stay is a court order stopping all collection activity on your debts and bills by your creditors.
CHAPTER 7 BANKRUPTCY
This is the most common type of bankruptcy for consumers and is commonly known as the liquidation bankruptcy. This kind of bankruptcy is used to eliminate certain types of unsecured debts for individuals and couples. The goal of this bankruptcy is to “discharge” (cancel, terminate or eliminate) debts incurred for credit card debts, personal loans, medical bills, and certain other debts.
Exempt property is generally protected under a Chapter 7 bankruptcy. An exempt property means a property that protected or shielded from bankruptcy and you will not lose the property because you filed a bankruptcy. This includes your homestead, a car, and personal property protected up to a certain amount.
Nonexempt Property is property that is generally not protected in bankruptcy and will be sold by the trustee to satisfy your debts. There are certain exemptions that may allow you to shield certain nonexempt property but depends on a case by case basis. Nonexempt assets typically include boats, second homes, invest property, land, savings accounts, etc..
WHAT IF I HAVE NO ASSETS?
If you do not own a home and do not have any nonexempt property then you simply eliminate and discharge your debts.
Some debts are not dischargeable such as student loans, recent IRS tax bills, child support, and criminal restitution.
CHAPTER 13 BANKRUPTCY
If an individual does not qualify for a Chapter 7 bankruptcy because:
- Their income is too high (do not qualify under the means test);
- Their own nonexempt property do not want to lose (boats, second homes, invest property, land, savings accounts, etc..); or
- The want to stop a foreclosure on their home or stop a repossession of their car.
Then the best option for that individual or couple may to file a Chapter 13 repayment bankruptcy.
Chapter 13 bankruptcy is typically used to protect your homestead from foreclosure. However, you must act quickly and file bankruptcy to stop foreclosure before it takes place. Because you may have very limited to no options after the foreclosure has taken place to save your homestead.
The way Chapter 13 bankruptcy works is that you have to create a repayment plan which must be approved by the bankruptcy trustee and your creditors. You must show how you repay your debts in a period of three to five years. This repayment plan can allow you to retain and keep your nonexempt property such as boats, second homes, invest property, land, savings accounts, etc..