Frequently Asked Questions
Answers from a Houston Bankruptcy Lawyer
Bankruptcy is a complex process that can leave many wondering what to do. Fortunately, an attorney from our firm is extremely knowledgeable in bankruptcy law and can be there step by step with you to ensure your claims is carried out in the correct manner. There are many questions you may have and here are a few that are commonly asked:
Who should file for bankruptcy?
There are many common misconceptions when it comes to bankruptcy. One of them involves who should file for bankruptcy. It is not only those that are out of work and in danger of a foreclosure that should consider it as an option. It can be for those that have a regular source of income but still possess a substantial amount of debt.
What if I don't want to file? Are there other options?
Yes there are and in fact a Houston bankruptcy attorney from our firm can discuss them with you during a free consultation. Alternatives include valuable options such as a short sale, loan modification, deed in lieu and debt consolidation. In addition, our lawyer can negotiate the terms of your loan and may be able to have the interest reduced or the payments lowered.
What is the difference between Chapter 7 and Chapter 13?
For many, they are unsure what the differences and which one they should be filing for. In general, a Chapter 7 bankruptcy filing is the more common choice and is what many people think of when they think of bankruptcy. This is for those that are in serious debt they cannot resolve on their own. The assets of a person (excluding exemptions) will be liquidated and used to pay for any resolved expenses. This option may be able to free them of the burden and allow them to start over. Some people don't need the same level of assistance but still require help. They may have a job and are looking to keep their assets. Through
Chapter 13 they can gain a more plausible grip on their debts which can include a more obtainable payment schedule which may continue on between three to five years.
Is there anything I can do about creditors that are continually calling?
Yes in fact under the Fair Debt Collection Practices Act you have many legal rights and standards that they need to adhere to. When you file for a bankruptcy, creditors need to limit their contact unless otherwise advised. Our attorney will also seek to protect your from their harassment including taking legal action if it is necessary.
What are the benefits?
For each person the benefits can differ since everyone has various goals they are looking to obtain. One of the most crucial benefits includes gaining a control on your finances whether it is through a payment plan or having them paid through liquidated assets. You may have tax debts, a mortgage, a car loan, credit card loans and more that you would be unable to ever pay on your own. The interest only continues to rise as you face more and more financial obligations. For many that file for bankruptcy, after working with creditors they may even have to pay a good amount less than what they originally owed. You may be able to avoid foreclosure as well. Once your filing is complete and you get back on your feet you can start rebuilding your credit score. Speak with a member at our firm to learn more about the ways filing can benefit you.
Contact a Houston bankruptcy lawyer from the office to answer any additional questions you may have.