Bankruptcy Lawyer Serving Houston
Are There Things I Will Lose if I File?
Although filing for bankruptcy has many benefits, there are some possible disadvantages. Whenever one files a Chapter 7 case, you must list all of your assets. The bankruptcy court can by law seize your property in order to pay your creditors. There are exemptions to this; however there is a possibility of losing some assets in a Chapter 7 bankruptcy. In addition, you will likely lose your good credit record, if you still had one. Many individuals already had serious delinquencies on their credit record and so are not severely impacted by a bankruptcy appearing on their history. In addition, your credit history will begin to improve fairly rapidly, as time changes the effect of a bankruptcy and if you are re-establishing credit, you can improve it in that manner as well. To find out more about the impact of filing, contact the Malaise Law Firm in Houston to discuss your personal financial situation. A bankruptcy lawyer will be happy to determine your best option.
Below are certain types of assets that you may lose in a Chapter 7 bankruptcy.
- Recreational vehicles
- Second cars
- Your primary residence, if you have been unable to maintain your mortgage payments. If you are current on your payments and can continue to make payments, you will likely be allowed to keep it.
- A second home or land.
- Any inheritance received within 6 months of filing bankruptcy
- Any cash on hand or checking or savings accounts, with the exception of a set exempted amount.
Chapter 13 allows for restructuring your debt, thereby allowing you to repay it within 3 to 5 years. The consequences of this type of filing, however, include restrictions on the use of any disposable income:
- All disposable income must be used for repayments of your debts.
- Limits of debt that can be restructured must be under $1,000,000., with no more than $250,000 in unsecured debt and $750,000 in secured debt.
- You will be tied to a strict repayment plan for 3 to 5 years, depending on how you restructured it in the petition.
- You are involved in the bankruptcy court process for the entire term of the 3-5 year plan, until all debts are paid.
Handling Your Bankruptcy in Houston
To get more details as to exactly how bankruptcy would impact you, it is best to meet with our skilled and dedicated lawyers. Having helped numerous clients in the Houston area, we are certain we can assist you with the financial assistance you need to handle your debt situation. We offer a free consultation to discuss your specific circumstances.
Find out what you may stand to lose by contacting a Houston Bankruptcy Lawyer at our firm.