What Type Of Bankruptcy Is Right For Me?

Personal bankruptcy usually falls under one of these two types. Chapter 7, or liquidation bankruptcy, and Chapter 13, adjustment of debts of an individual with regular income bankruptcy. Business bankruptcies generally fall under Chapter 11, which is a reorganization bankruptcy, and Chapter 12 bankruptcy for family fishermen or family farmers, which is much like a Chapter 13 bankruptcy.

Chapter 7 Bankruptcy

In Chapter 7 bankruptcy you eliminate all of your qualifying debt in a relatively short amount of time, usually anywhere from three to six months. A court-appointed trustee will examine your assets, your debt, and your income. The trustee will determine if anything can be sold for the benefit of the creditors. In the vast majority of cases in Texas, filers do not lose any of their property due to generous exemptions under either state or federal law. A Fort Worth bankruptcy attorney can advise you on which exemptions will be best for your situation. You can not use both state and federal, and you must choose one over the other. This type of bankruptcy is best if you have mostly unsecured debt such as credit cards, medical bills, payday loans, and sometimes old tax debt.

Chapter 13 Bankruptcy

Chapter 13 bankruptcies differ from Chapter 7 in that you will be able to keep all of your assets and make payments on your overdue debt. The trustee will go over the repayment plan that you and your attorney have prepared and most likely approve it. The repayment plan will be for a set period of between three to five years, and you will make payments directly to the trustee. The amount of your payment is based on your income and other factors.

This type of bankruptcy benefits people with secured debt such as a home mortgage or vehicles they want to keep and are behind on the payments. The repayment amounts will very often be lower than the original payments. Once you have made the required payments, you are entitled to discharge as in Chapter 7 bankruptcy. Any remaining unsecured debt will be eliminated after the predetermined repayment period. You must continue to make payments on your home and your car if you plan to keep those secured assets.

Consult with a Fort Worth Bankruptcy Attorney

If you need help to determine which bankruptcy is right for you, consult a qualified Fort Worth bankruptcy attorney. Although there are many Fort Worth bankruptcy attorneys to choose from, my office distinguishes itself by giving you personalized, caring service. As an experienced and dedicated Fort Worth bankruptcy attorney, I can offer advice on how to proceed based on your specific situation.  You and I can meet face to face to discuss your options. To schedule a FREE consultation, please contact me at (817) 732-7590 or (972) 819-3861. You can also send me an E-mail or complete the Free Case Evaluation