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The Power And Ways Of Bankruptcy

If you are interested in bankruptcy as a possible avenue of debt relief, this is a good sign that it may be an appropriate path forward for you.

At the law offices of Christopher Morrison, we help clients understand how to take the required means test for people considering bankruptcy. The results will help answer one of the first questions often heard about bankruptcy: “Do I qualify to file for a Chapter 7 debt discharge bankruptcy?” No matter which type of bankruptcy is right for you, you may soon enjoy a financial fresh start.

If You Don’t Qualify For Chapter 7 Bankruptcy

The means test results may indicate that your income and/or assets are too high for you to file for Chapter 7 bankruptcy. If you have substantial home equity and want to be sure to hold onto your house – and your car, too – Chapter 13 bankruptcy may be your best bet for debt relief. By filing for bankruptcy, you can stop foreclosure, stop creditor harassment and stop losing sleep over unrepayable debt.

The Bankruptcy Process In A Nutshell

If you choose to file for bankruptcy, here is some of what you can expect:

The debtor should assemble a complete record of all debts. Any that are left out will not be included in the bankruptcy, will not be dischargeable and may lead to a dismissal of the bankruptcy filing with no opportunity for any discharge.

The debtor should notify creditors that they are being represented by an attorney in bankruptcy. They should not repay any debts without consulting with an attorney first.

  • For a Chapter 7 bankruptcy, the debtor will meet with a bankruptcy trustee at a 341 creditors’ meeting. If all goes well, the trustee will submit a report to the bankruptcy court, where a judge will order a discharge of all debt.
  • For a Chapter 13 bankruptcy, the debtor and a bankruptcy trustee will agree on a three- to five-year affordable repayment plan, including prioritized, secured debts such as mortgages and car loans, as well as other debts.

Legal fees for Chapter 7, including court fees, must be paid before filing occurs. Legal fees for Chapter 13 bankruptcy will be built into the monthly payments of the three- to five-year debt reorganization plan.

With a successful discharge of debts, a former debtor will be able to build credit once again.

Consult With An Attorney About Debt Relief And A Fresh Start Through Bankruptcy

The descriptions above are general. Every case is unique. To schedule a personalized free consultation, call 713-396-3704 in Houston or send an email inquiry.