Bankruptcy Law Changes

Houston bankruptcy attorney Vicky Fealy has devoted her entire legal career exclusively to practicing bankruptcy law and has, for more than eighteen years, provided legal bankruptcy representation to thousands of consumers and businesses in Texas.

Attorney Vicky Fealy is one of a limited number of Texas Board Certified Consumer Bankruptcy attorneys in Houston and as such is "on top of" bankruptcy law changes and how the changes affect you.

Consulting with the bankruptcy lawyers of The Fealy Law Firm, P.C., can be one of the most important decisions you make if you are facing stressful financial difficulties involving a Chapter 7 bankruptcy, Chapter 13 bankruptcy or Chapter 11 bankruptcy.

With the latest changes in bankruptcy law, more and more people are finding themselves ineligible for traditional Chapter 7 bankruptcy, or liquidation; as a result, the trend is toward more Chapter 13 bankruptcy filings. However, many people who qualified for Chapter 7 under the new law still qualify for Chapter 7, but may find it advantageous to file for Chapter 13 anyway.

By filing Chapter 13 bankruptcy, you are essentially entering into a repayment plan that permits you to repay all or a portion of your debts over a certain time period.

Furthermore, filing Chapter 13 bankruptcy generally permits you to keep your assets, which does not always occur in a Chapter 7 bankruptcy. Therefore, if you are a person who has substantial assets, as well as a regular income sufficient to repay all or most of your debts, filing Chapter 13 bankruptcy may be the right step for you.

Much like a Chapter 7 bankruptcy filing, Chapter 13 bankruptcy proceedings start when you file a petition, along with various required forms regarding your assets, income, debts, and expenses. Filing Chapter 13 bankruptcy also requires the filing of a repayment plan at the time of or shortly after the petition is filed, for approval by the court. Within 30 days of filing Chapter 13 bankruptcy, you have to begin making payments to the trustee as per the terms of your plan.

Furthermore, a Chapter 13 bankruptcy filing will result in an "automatic stay", or a temporary order of the court that stops your creditors from taking further action to collect their debts from you, such as by garnishing your wages or attaching your bank account. The automatic stay typically remains in place throughout your bankruptcy proceedings. Therefore, a Chapter 13 bankruptcy filing may be a way to save your house from foreclosure or your car from repossession so long as payments are made according to the Chapter 13 plan.

After the Chapter 13 bankruptcy filing, the trustee holds a meeting of creditors, at which you must appear and answer any questions, and any potential problems with the proposed plan must be resolved. The bankruptcy court will then schedule a confirmation hearing in order to determine whether your plan is feasible and appropriate.

Assuming that your Chapter 13 bankruptcy plan is confirmed by the court, then it is up to you to make the plan work. In other words, you must comply with the terms of the plan in terms of repayment, and you must not incur new debts during the repayment period. If you complete the plan successfully, then you will receive a discharge of any remaining amounts owed on your debts included in the plan.

Here is the list of counties we serve: Harris, Fort Bend, Brazoria, Montgomery, Chambers, Galveston, Matagorda, Colorado, Wharton, Fayette, Austin, Waller, Brazoria, Grimes, Madison, Walker and San Jacinto.

If you or your business in Texas needs the assistance of an experienced Houston Bankruptcy Attorney, call The Fealy Law Firm, P.C. today at 866-751-1087, or complete the contact form provided on this site to schedule your free consultation

Top of Page