Bankruptcy - Dallas/Ft. Worth, TX

Bankruptcy - Dallas/Ft. Worth

What is bankruptcy?

Bankruptcy is a federal law used by debtors and their financial affairs. Bankruptcies are a necessary part of our free enterprise system.

Should I file bankruptcy?

Filing bankruptcy is a serious step, and not to be taken lightly if you owe. For instance, if debtors owe only a small amount to a few creditors, it might make more sense to consult a credit counseling service. Beware of credit counseling services who claim they have access to "little known programs" or can settle for "pennies on the dollar". The airwaves are rift with con artist. The FTC has been cracking down, but they are still around. Bankruptcy might be necessary however, under certain situations: For example, do you have large credit balances, and cannot meet minimum installment payments? Are you borrowing from one credit card to pay another? Are you swamped by uninsured medical bills or judgments? Is there a pending or threatened foreclosure, garnishment, or repossession? Do you need a "fresh start" to relieve financial stress?

Can I keep my home and other possessions?

Generally, debtors can keep their homes and possessions after filing bankruptcy. Careful planning with an attorney will maximize the end result.

What types of bankruptcy are there?

Chapter 7 "liquidation" is the most common form of bankruptcy. It provides debt relief, stops creditor harassment, garnishments, and collection lawsuits. In theory your property is supposed to be sold by a trustee in a Chapter 7. However, this usually is avoided because debtors are entitled to exemptions which protect most, if not all, of their property from liquidation. Under Chapter 7, no further payments are needed, unless you want to redeem certain secured or nonexempt property, or reaffirm a debt. Chapter 13 repayment plans will stop foreclosures and onerous tax collections and give you a chance to catch up these and other debts. It also might lower the amount you have to pay on auto or furniture loans. Under a Chapter 13 Plan, you agree to catch up, by paying a monthly amount you can afford, to a trustee, for three to five years.

Chapter 11 is for business reorganizations and Chapter 12 is for farmers.

Are there debts I can`t discharge?

Certain obligations are automatically not discharged. These include alimony, child support, most income taxes, most student loans, criminal fines, and injuries from DUls. Other debts are not discharged if a complaining creditor can show he meets certain criteria (such as fraud) to justify a denial of discharge. Usually these issues can be anticipated by your attorney,

What is Pre-bankruptcy Planning?

People contemplating bankruptcy should consult with their attorney long before filing a bankruptcy. The object of this consultation should be to evaluate assets and determine if any assets can be "taken" by the bankruptcy trustee. If so, steps may be taken to leagally rearrange the person's financial affairs to avoid the loss of the "at risk' assets. This is exxtremely complex business. No one should try rearranging their affairs on their own. The most common example of a prohibited activity is paying preexisting debts to relatives. This can be a disaster. As, noted before. This is not something one does "on their own".

How do I choose an attorney?

Bankruptcy is an extremely complex area of law. You should seek out a board certified specialist to handle your case.

Most competent attorney`s experienced in bankruptcy can evaluate your situation and advise you as to the best solution. It is ethically and legally questionable whether attorneys may offer " no cash down" bankruptcies. If personal service is important to you, ask whether a prospective attorney uses staff people to fill out schedules, or to return phone calls, instead of handling your situation personally.

This educational content is for educational purposes only and does not constitute legal, financial, home improvement or health advice. Content on this page is provided by Ask The Experts and not the featured advertiser.

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