Houston Bankruptcy Lawyer
Debt Relief Options for Texans Facing Financial Trouble
If you are overwhelmed with your financial obligations each month and are paying hundreds of dollars in minimum payments for either consumer credit cards or medical debt, you may want to talk to an attorney about bankruptcy.
The protections offered under the U.S. Bankruptcy code can help people in Texas recover from an unmanageable financial situation – regardless of what caused that situation. Contact me today for a free initial consultation.
Causes of Bankruptcy
What led you to a difficult financial situation does not matter. People find themselves needing the protection offered through bankruptcy for a variety of reasons.
- Losing a Job – Most Americans rely on every paycheck to meet their monthly financial needs. When someone loses their job, they often rely more on their consumer credit cards which can lead to things spiraling out of control.
If you are spending a good portion of your income on minimum payments for credit cards, bankruptcy may be a good option for you.
- Medical Bills – Medical debt CAN BE discharged (or reorganized) through bankruptcy. There are many people who believe you cannot eliminate medical debt through bankruptcy. The fact is, a great majority of bankruptcies are caused by unexpected medical expenses, even for people who have health insurance.
If you are being pursued by a collection agency for a medical debt, bankruptcy may be a good option for you.
- Covid-19, Quarantine, Pandemic – We are indeed living in strange economic times and there are probably more reasons to list for economic uncertainty than there ever have been. If Covid-19 has seriously affected you financially, I would like to talk to you about how bankruptcy can help.
The reality is, it does not matter WHY you are facing financial difficulty…many people are hesitant to file for bankruptcy because they are embarrassed or ashamed of their debt. What matters is how an experienced attorney and the U.S. Bankruptcy Code can help you to financially get a fresh start.
Types of Bankruptcy
For most people seeking bankruptcy, you will be looking at one of two options based on your income level:
- Chapter 7 – Chapter 7 is often called “Liquidation” but that can be misleading. Technically, you give up all of your assets to a Trustee to be liquidated; however, there are “exemptions” that let you protect certain types of property (where you live, the car you drive, wedding ring, retirement accounts). Most people who file Chapter 7 do not end up giving up any assets. Most people who file Chapter 7 keep their house and car and are able to completely start over.
To learn more about Chapter 7 bankruptcy and how a Houston lawyer can help you, click here.
- Chapter 13 – Chapter 13 reorganizes and prioritizes your debt and a 3-year or 5-year plan is created and approved by the bankruptcy court that essentially determines how the money will be distributed. You make a monthly payment to the bankruptcy trustee and they distribute the money to your debtors. You have to make payments for a certain period of time; debt that remains after that period of time will be discharged.
To learn more about Chapter 13 bankruptcy and how a Houston lawyer can help you, click here.
Take the first step by taking advantage of a free initial consultation. Dan will help you understand how the bankruptcy laws will apply to your situation and give you options for moving forward.