Facts to Know

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Houston Bankruptcy Lawyer Michael Sharp provides this brief outline of Chapter 7 and Chapter 13 Bankruptcy to help you gain a clearer understanding of your consumer bankruptcy rights. For specific questions visit his Frequently Asked Questions page.

BANKRUPTCY
The Federal Bankruptcy Code was enacted to assist individuals and businesses facing financial crisis. It allows you the opportunity to either reorganize or liquidate your debt. This is a legal process to assist people eliminate their debt or repay all or a portion of their debt over a specified period of time. Once the debt is erased or the determined portion is paid off, the bankruptcy court officially grants the debtor a discharge. The debtor can then make a fresh start financially. Bankruptcy courts are part of the federal court system, and the Bankruptcy Code is found in Title 11 of the United States Code.

If you qualify, Federal Bankruptcy Laws can afford you protection against

harassing creditor calls
potential repossessions
foreclosures
wage garnishment

judgments
lawsuits
IRS levies

"ARRANGE A FREE CONSULTATION - CALL 866-219-1494"

CHAPTER 7 (Click Here For a More Comprehensive Explanation)
A Chapter 7 Bankruptcy filing allows an individual to discharge or "wipe out" all unsecured debt and retain their assets that the Texas or Federal laws designate as "exempt property". Whether a debt is secured or unsecured, exempt or non-exempt can be confusing and should be discussed with your attorney.

Generally speaking, a debt is "secured" if it was incurred to buy real or personal property (ie. homes, automobiles, furnishings) and the creditor retains a security interest or lien on the property. "Unsecured" debt includes most credit card debt, personal loans, unpaid medical bills, judgments, broken leases, old gym memberships and cell phone or other service contracts. Chapter 7 affords you the opportunity to make a clean start without the burden of oppressive debt.

CHAPTER 13 (Click Here For a More Comprehensive Explanation)
A Chapter 13 Bankruptcy filing is a debtor's plan of debt reorganization filed with the court. This repayment plan lasts a minimum of 3 years and provides the debtor an opportunity to lump many of his monthly bills into one monthly payment in order to repay debts and preserve certain assets that might be lost in a Chapter 7.

This legal remedy is a valuable tool for those who have fallen behind on mortgage or car payments or who are facing difficulties with the IRS as it allows them to consolidate bills and provide time to catch up delinquencies.

The filing of a Chapter 13 Bankruptcy immediately stops foreclosures and repossessions.

CONCLUSION
The key factors in determining whether debtors should file a Chapter 7 or a Chapter 13 are:

the amount of the debtors’ monthly income
what their monthly expenses are
how much debt they have
what assets are owned

Why seek advice from an attorney unfamiliar with bankruptcy or who occasionally handles a bankruptcy case? They may not be knowledgeable enough to be effective.

SEEK ADVICE EARLY
Timing is often critical. Too often people seek advice only after their problems are raging out of control and threatening their health, marriage or employment. To delay consulting an attorney may result in a significant sacrifice of options and the inability to plan properly for bankruptcy or other debt relief approaches. Rather than dwell on one's misfortunes, it is better to look at bankruptcy as Congress intended--a fresh start. If mistakes were made, learn from them and move forward.

Attorney Michael Sharp provides you with a thorough analysis of your financial circumstances and presents you with a "Doable Game Plan", including recommendations of how and when to proceed. He also recommends against a bankruptcy filing if the circumstances so warrant.

"ARRANGE A FREE CONSULTATION - CALL 866-219-1494"