Texas Bankruptcy & Debt Relief Attorney
Bankruptcy is a responsible and legal Debt Relief option that can get rid of debt, reduce debt, or reorganize debt depending on the circumstances. Bankruptcy can take the financial pressure off and let you breathe the air of a fresh financial start. Even in the most financially burdensome and stressful conditions, filing for Bankruptcy can stop the world of debt from closing in. Whether you file for Chapter 7 Bankruptcy, Chapter 13 Bankruptcy , or Chapter 11 Bankruptcy, filing Bankruptcy puts you in control of your financial situation.
If you need to get rid of debt, reduce debt, or simply reorganize your debt, contact the Texas Bankruptcy Lawyers at The Law Offices Of R.J.Atkinson to see if filing bankruptcy can help you to relieve your debt problems. Our Texas Bankruptcy Attorneys can provide you a free bankruptcy evaluation and a free bankruptcy means test to determine your bankruptcy relief options.
Bankruptcy is a debt relief option that can provide the opportunity to get a fresh financial start. The United States Bankruptcy laws were designed to give honest people a new financial start, free from their burdensome debt. Bankruptcy has been around a long time and millions have filed for bankruptcy to get rid of debt or reorganize their finances.
If you’re considering Bankruptcy you’re not alone. The people who work the hardest, the most financially disciplined bill payers, former United States Presidents, and even the rich and Famous Have Filed for Bankruptcy. Anyone can suddenly find themselves in financial trouble because of a divorce, medical illness, loss of employment, or for any other financial bump in life’s road. In many cases, filing for bankruptcy can be the solution to formidable debt. If what you receive in income is much less than what you owe, or if you're afraid to answer your phone because your creditors won't stop calling, you're facing a foreclosure, repossession, back child support, or an IRS garnishment, then filing bankruptcy may be a solution to your problems.
Many people are afraid of admitting they have financial problems. Those who do, often wait to the last minute before seeking legal advice from a Bankruptcy Lawyer. However, credit card bills, medical bills, past due taxes, lawsuits, foreclosures, and plain old insurmountable debt usually doesn’t just go away by itself, so it's important to do something about it.
Bankruptcy law is federal in origin so it only slightly varies little from state to state. The Constitution of the United States gives to Congress the power to establish uniform bankruptcy laws throughout the United States, which in turn ensures the consistency and predictability in how a bankruptcy proceeding is conducted. Each state retains jurisdiction over certain debtor/creditor issues that are not addressed in a bankruptcy and don’t conflict with federal bankruptcy law, such as what property remains exempt from creditors' claims. Exemptions are the property you are allowed to keep based on state or federal law. In a bankruptcy proceeding, you get to choose what exemption scheme benefits you most. Texas has generous exemptions and most people who file for bankruptcy using the Texas Exemptions are able to keep all of their property.
Different Types of Bankruptcy
There are different bankruptcies available to different people and businesses and for different reasons. Like every legal proceeding, the particular circumstances of a situation will determine what options are available. In a bankruptcy context, this refers to the Chapter of Bankruptcy to be filed. For people, there are two basic types of bankruptcy available, which are Chapter 7, and Chapter 13. They are named for the chapters of the Bankruptcy Code for which they apply. Chapter 7 bankruptcy gets rid of most debts without paying anything to your creditors, and Chapter 13 bankruptcy is a court supervised repayment plan whereby you pay all or a portion of your debt to a court appointed trustee over a period of time, usually three to five years. Chapter 11 Bankruptcy is also available to individuals, but seldom used by them due to its complexity and expense. As such, Chapter 11 Bankruptcy is primarily used by businesses to reorganize.
Chapter 7 Bankruptcy
Chapter 7 Bankruptcy is best used when a person can’t realistically expect to repay a significant portion of their debts. Chapter 7 bankruptcy is oftentimes the best option if you have a lot of unsecured debt and have exempt property or not much property that you want to keep. Chapter 7 Bankruptcy is commonly known as ‘straight bankruptcy' or liquidation bankruptcy, which means the court will sell any non-exempt assets to pay creditors. In most Chapter 7 cases the person filing usually keeps all of their property because Texas law allows debtors a significant amount of property which is exempt. Chapter 7 bankruptcy does not discharge all of your debts. Child support and other support obligations can’t be discharged, along with student loans, and some taxes. Your house & car payments must be current when filing a Chapter 7 or you will loose them. For many people in Texas, Chapter 7 Bankruptcy is the best way to get rid of debt, and keep most all of their property. To qualify for Chapter 7 Bankruptcy, you must pass the Texas bankruptcy means test.
If the Texas Bankruptcy Means Test determines you are eligible to file for Chapter 7 Bankruptcy, you can usually eliminate all of your unsecured debt. This means that filing bankruptcy under Chapter 7 can get rid of credit card debt, personal loans, medical bills, payday loans, auto accident claims, lawsuits, judgments, leases, certain taxes, repossession & mortgage deficiencies, guaranties, and most every type of unsecured debt.
Chapter 13 Bankruptcy
Chapter 13 Bankruptcy is commonly used when a person is facing foreclosure, repossession, & back child support, and needs to catch up on missed mortgage, car payments, or support arrears. Chapter 13 Bankruptcy can be a sensible option if you have a regular income and your debts that are secured by property you'd like to keep, such as a mortgage on your home, or a loan on your car have gotten delinquent. Chapter 13 Bankruptcy is sometimes called a wage earner's plan, or a personal reorganization bankruptcy. Chapter 13 bankruptcy is quite different from a Chapter 7 bankruptcy. In Chapter 13, your income is used to pay some or all of what you owe to your creditors over a period of 3 to 5 years, depending on your disposable income and the amount of your debt. Some creditors will be paid back in full with interest, such as mortgage companies or car lenders; while unsecured debts, such as credit cards & medical bills, will be repaid a percentage of the debt, from what’s left over. This often allows credit card debt to be paid pennies on the dollar while missed mortgage payments and car payments are paid in full. Chapter 13 Bankruptcy is also used by creditors who don’t qualify for Chapter 7 under the means test.
In a Chapter 13 Bankruptcy, you propose a plan of reorganization to be approved by the Bankruptcy Court and the Chapter 13 Trustee. If the plan is approved by the bankruptcy Trustee, you make monthly payments directly to the Trustee, who in turn pays your creditors. Chapter 13 bankruptcy can give you the breathing room in order to catch up on past due mortgage arrears and car payments without the threat of foreclosure or repossession. If you make all the Chapter 13 plan payments in accordance with your plan, whatever the remaining dischargeable debts are can be eliminated at discharge.
Chapter 11 (Corporate-Business) Bankruptcy
Chapter 11 bankruptcy is a corporate reorganization plan that allows a company to continue to do business while taking control of its debts. A Chapter 11 bankruptcy petition may be voluntary, or may under certain circumstances be initiated by one or more creditors. Chapter 11 is usually filed by businesses seeking to reorganize. However it is available to individuals but is seldom used by them. Chapter 11 Bankruptcy is a fairly expensive process for individuals and as such is generally used by people with high amounts of debt and/or high income who choose to reorganize their finances. The main purpose of a Chapter 11 Bankruptcy is to allow the business or individual some breathing room from their creditors while allowing them to get back on their feet and hopefully repay their debts in part or in full. While the person or business filing a Chapter 11 does get some breathing room, they must compile a plan of reorganization to propose their creditors and the Bankruptcy Court. Chapter 11 Reorganization Under The Bankruptcy Code allows a good amount of flexibility in structuring reorganization. There is no debt limits imposed under Chapter 11.
When a business files a reorganization plan, they continue with the day-to-day operations of the business according to the plan, but those operations are monitored by the U.S. Trustee’s office and in some cases a committee of creditors.
Do you Want More Information on Chapter 7 Bankruptcy?
If you or your business need to obtain debt relief or a fresh financial start, bankruptcy may be an option to help you get rid of your debt, reduce your debt, or reorganize your finances. Bankruptcy is often a mystery to most people because it’s not a regular everyday occurrence. Although they may occasionally hear about bankruptcy in the media, most people in Texas consider filing bankruptcy when they are facing some type of financial emergency or the have had chronic debt problems which need to be addressed. If you need debt relief or are facing a financial problem that requires immediate attention, filing bankruptcy might be an option. To see if filing bankruptcy is an option for you, contact the Texas Bankruptcy Lawyers at The Law Offices Of R.J.Atkinson for a free bankruptcy evaluation.
If you live in Houston, Austin, San Antonio, Dallas, Waco, Plano, Sherman, New Braunfels, or anywhere in the State of Texas contact the Texas Bankruptcy Lawyers at The Law Offices Of R.J.Atkinson. An experienced Texas Bankruptcy Lawyer can help you decide if filing bankruptcy is the best option for you to get rid of your debt, significantly reduce your debt, or reorganize your debt.
If you want to learn more about bankruptcy, contact the Texas Bankruptcy Attorneys at The Law Offices of R.J.Atkinson. We have helped thousands get a fresh start in Bankruptcy and we might be able to help you.
Do You Want a Detailed Bankruptcy Overview or to Explore your Bankruptcy Options?
Call the Texas Bankruptcy Attorneys: 800-436-9056