Bankruptcy is a protective Federal law that allows individuals, businesses, or organizations that are unable to pay back creditors to file a petition with the U.S. Bankruptcy Court seeking relief from creditors.
Federal law may allow you to stop foreclosure, repossession, and collection of a debt, lawsuits, and harassment by collection agencies.
The decision to file for bankruptcy relief is very serious and you need a competent Dallas bankruptcy lawyer to aid you in making your decision.
I am an experienced Dallas bankruptcy attorney filing bankruptcy cases since 1994 and will seek to represent your interests in bankruptcy.
There are several different types of bankruptcy cases often used to provide fast relief from serious debt problems.
The three main forms of bankruptcy cases are:
Chapter 7 Bankruptcy is the most typical bankruptcy chapter used by individuals and businesses. Filing under chapter 7 allows debtors to surrender non-exempt assets to repay their creditors. The Debtor may be able to keep exempt property. Many cases will not have non-exempt property to repay creditors.
Chapter 7 is often referred to as a “liquidation” bankruptcy. Federal law may allow the stopping of all acts to collect debts outside of the bankruptcy. Upon successful completion of Chapter 7, most of the bankruptcy debts are discharged. Some debts may not be discharged by law.
Debtors must be eligible for this type of bankruptcy. Chapters 11 and 13 are available if you are not eligible for Chapter 7.
Chapter 11 bankruptcy is the most typical chapter used by large businesses. Filing under this chapter under federal law may allow debtors to reorganize their debt and pay back creditors under a court-supervised plan.
Chapter 11 can also be filed by individuals when they have a large number of assets and significant debt.
The automatic stay may cause all collections and litigations by creditors to stop until the court allows continuation.
Chapter 13 bankruptcy is used by individual wage earners and self-employed debtors to use a court-supervised plan of reorganization to repay creditors. Under federal law, Chapter 13 may allow a debtor to cure delinquent debt through the plan of reorganization. Creditors are not allowed to continue collection without Bankruptcy Court approval.
Chapter 13 is usually utilized by individuals to catch up on house payments, car loans, and pay back taxes. Chapter 13 is also used for cases where the debtor is not eligible for Chapter 7.
To learn more about bankruptcy and whether or not it is a good fit for you, schedule a consultation with me today in Dallas, Texas.