Bankruptcy
bankruptcy lawyer dfw
Drowning in Debt?
Let us help you find a better solution. It is possible to stop wage garnishment, repossessions, foreclosures, lawsuits, and stressful debt collection calls.
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What is Bankruptcy?
Bankruptcy is a legal process filed under federal law that allows individuals and businesses who can no longer repay their outstanding debts to get a fresh financial start.
It provides court protection from creditors and gives you a structured way to either eliminate most of your debt (liquidation) or reorganize your debt (repayment plan) so you can get back on your feet.
Types of bankruptcy
Ch. 7 Vs Ch. 13 Bankruptcy
Chapter 7 Bankruptcy
🛡️ Liquidation
Chapter 7, can help you to be free of most if not all of your unsecured debt. You may be eligible for exemptions that will allow you to keep your assets. Most cases are completed in 4 – 6 months.
Chapter 13 Bankruptcy
📅 Reorganization
Chapter 13, can help you restructure your debt to give you easier payments and keep your assets. Ch. 13 allows you to pay back your debt over 3 -5 years and requires a federally supervised repayment plan.
Our Commitment to You
At the Law Office of Beverlei Colston, PC, we will ensure that your case is handled in the most professional, competent, and personal manner. We understand this is a difficult time for you, and we will help you navigate the legal system and get you on the road to a better financial future.
Attorney Fees and Consultation
- We offer affordable flat fees, and payment plans are available.
- For Chapter 7 cases, payment plans are prior to filing.
- Contact us for a free consultation to discuss your specific case and cost.
Bankruptcy FAQs
Will I lose my house, car, or other property?
Texas law offers significant exemptions, such as the homestead exemption with no value limit for a primary residence and an exemption for one vehicle per licensed adult household member. In the vast majority of cases, debtors can keep their assets.
Will filing stop collection calls and legal actions?
Yes, immediately upon filing a bankruptcy petition, an “automatic stay” is put in place, which generally halts most collection activities, including phone calls, lawsuits, wage garnishments, and foreclosures.
How long will Bankruptcy take?
A Chapter 7 bankruptcy generally takes approximately 4 – 6 months. A Chapter 13 generally takes 3 -5 years.
Will I have to go to court?
You will have to attend a “Meeting of Creditors” (also known as a 341 hearing) with your attorney and a court-appointed trustee, but a judge is usually not present. You, generally, will not have to attend a court proceeding unless there is an objection or complication that arises in the case.
Do I Qualify for Chapter 7 Bankruptcy?
Qualification for a Chapter 7 is largely based on your income. For the most part, below-median income debtors automatically qualify for Chapter 7 bankruptcy. An above-median income debtor may qualify as well, and qualification will generally be based on your gross income minus your allowable expenses. Our attorneys can help with this assessment.
Should I file for Chapter 13 Bankruptcy?
There are several reasons for considering a Chapter 13 vs. Chapter 7 bankruptcy such as:
Saving Your Home from Foreclosure: Chapter 13 allows you to stop foreclosure proceedings and cure delinquent mortgage payments over the life of the three-to-five-year plan, provided you make all future mortgage payments on time.
Keeping Non-Exempt Assets: Unlike Chapter 7, which may require the liquidation of non-exempt assets (property not covered by specific legal protections), Chapter 13 lets you keep all your property as long as you adhere to the repayment plan.
Protecting Co-signers: A special provision in Chapter 13 protects third parties (like friends or family) who are co-liable on “consumer debts,” shielding them from creditor action while you are in the plan.
Managing Priority Debts: Chapter 13 helps manage priority debts, such as past-due alimony, child support, and certain tax obligations, by structuring full repayment through the plan.
Stopping Creditor Actions: Once you file, an “automatic stay” is put in place, which stops most collection efforts, including lawsuits, wage garnishments, and collection calls.
Restructuring Secured Debts: You may be able to reschedule secured debts (excluding your primary home mortgage) and extend them over the life of the plan, potentially lowering your monthly payments.
How will bankruptcy affect my credit, and for how long?
A bankruptcy filing can remain on your credit report for 7 – 10 years, but you can begin to rebuild your credit after the discharge.
Can I establish new credit after bankruptcy?
Yes, many people are able to obtain new credit, such as credit cards or car loans, and significantly rebuild their credit in some cases as soon as a couple of years after discharge.
