Bankruptcy Defined

The Federal Bankruptcy Code was enacted to assist people who are overwhelmed by debt or are facing financial crisis. If you qualify, Federal Bankruptcy Laws can afford you protection against creditor harassment and give you a chance to get a fresh start financially. Each situation is unique, but Federal Law can protect you from harassing creditor calls, potential repossessions, foreclosures, wage garnishment, judgments, lawsuits and IRS levies. The Federal Bankruptcy Laws allow you the opportunity to either reorganize or liquidate your debt.

Bankruptcy comes from many directions and results in many forms and issues:

If you are considering filing a bankruptcy petition in Houston, Harris, Fort Bend, Brazoria, Montgomery, Chambers, Galveston, Matagorda, Colorado, Wharton, Fayette, Austin, Waller, Brazoria, Grimes, Madison, Walker, or San Jacinto County you need a Houston Bankruptcy attorney. This is no time to choose an attorney who occasionally dabbles with Bankruptcy cases and doesn't understand Texas bankruptcy law as relates to liquidation, unsecured debt, secured debt, creditor harassment, discharges, Texas median income means testing and your choices between federal or state exemptions. Bankruptcy law is a complex area of the law and involves an understanding of the interplay between the bankruptcy code, the Texas property code, the Texas family law code, and the IRS tax code as well as recent case law developments.

Houston bankruptcy attorney Vicky Fealy has devoted her entire legal career exclusively to practicing bankruptcy law and is one of a limited number of Houston area attorneys Board Certified in Consumer Bankruptcy by the Texas Board of Legal Specialization. She has represented consumers and businesses for more than 18 years.

BANKRUPTCY TERMS

Adversary Proceeding

Simply put, a lawsuit filed in a bankruptcy court, usually to determine dischargeability of debt or to determine the validity of a lien. Debtors may also file adversary proceedings for violations of the automatic stay.

Arrearage

The amount of overdue payments you owe, usually related to past due mortgages, auto payments or child support.

Assets

Any interest owned in property or possessions including but not limited to real estate, vehicles, household goods, potential claims, retirement accounts, bank accounts, and cash.

Automatic Stay

Is an injunction which goes into effect when the bankruptcy petition is filed. The automatic stay prohibits creditors from proceeding with lawsuits, foreclosures, repossessions, garnishments and collection activity.

Bankruptcy Estate

The bankruptcy estate includes all legal or equitable interests of the debtor in property as of the commencement of the case. Debtor may exempt certain assets from the estate under either bankruptcy or state law. The exempt property can not be used to satisfy creditors' claims.

Collateral

Property owned by the debtor which is subject to a lien or used to secure a debt.

Confirmation

The order entered by a Bankruptcy Judge approving a Debtor's plan of reorganization. The confirmation order dictates how creditors will be treated in the Chapter 13.

Creditor

Is an entity that has a claim against the debtor that arose before the filing of the bankruptcy petition.

Debtor

A person or entity that has borrowed money from an individual or entity and is liable on that debt.

Discharge

The order of the bankruptcy court which eliminates debtor(s)' eligible debts. Creditors are prohibited from attempting to collect on debts which have been discharged.

Equity

An individual's interest in property. Equity is the difference in the value on secured property and the amount owed on it.

Exempt Property

Property which is protected either by state law or by the bankruptcy code. This property cannot be sold by the Trustee to satisfy debts. It may include certain amounts of equity in your house, vehicles, household goods, and retirement plans.

Foreclosure

The legal process by which a lienholder creditor may take your house.

Garnishment

The process by which a creditor takes payments out of a person's paycheck or bank account. In Texas usually only for child support, student loans or taxes out of wages, but exceptions do occur. Judgment creditors and creditors secured on bank accounts can garnish or offset funds in bank accounts.

Judgment

The resolution of a lawsuit whereby the Court may enter a judgment against a debtor by a creditor. This means the creditor may pursue collection remedies to satisfy or collect on its judgment. These remedies may include garnishment, repossession, foreclosure or taking of non-exempt property. Secured creditors do not always have to obtain a judgment before foreclosing or repossessing collateral.

Levy

Similar to a garnishment. The process by which a taxing authority collects debts by attaching a person's paycheck or bank account.

Lien

The legal process of securing collateral by allowing a creditor the right to foreclose or repossess collateral for which the creditor has been granted a security interest. Examples include liens on vehicles, homesteads, furniture and appliances.

Reaffirm

A contract between a debtor and a creditor in a Chapter 7 bankruptcy which allows the debtor to keep secured collateral in exchange for promising to continue to make payments to the creditor.

Redeem

The right of a debtor to offer a lump sum payment to a secured creditor to retain the secured collateral in a Chapter 7 bankruptcy.

Surrender

The right of a debtor in a Chapter 7 bankruptcy to give back secured collateral to a creditor in a Chapter 7 bankruptcy. By surrendering the collateral to the creditor in bankruptcy, the debtor satisfies the debt and cannot be pursued for a deficiency balance. Certain exceptions may apply.

Trustee

A person appointed by the Court to administer a bankruptcy proceeding. This person will conduct the meeting of creditors and insure that the requirements of the bankruptcy code are adhered.

Every year, more than 1,000,000 Americans file for protection under Federal bankruptcy laws, Many hardworking individuals and businesses can succumb to financial difficulty, and face irreparable economic crisis. Bankruptcy is designed as a legal option to help resolve such a crisis, and act as a financial life preserver for those drowning in debt. To discuss your bankruptcy options, or other areas of recourse that might be available to you, contact a qualified bankruptcy attorney who can advise you of your legal rights as stated under Bankruptcy Law and federal Bankruptcy courts.

Vicky M. Fealy has litigated hundreds of cases in the bankruptcy courts, including but not limited to Motions of Relief from Stay, Adversary Proceedings, Claim Objections and other contested matters.

Attorney Fealy has more than 18 years experience also representing individuals and businesses as creditors in bankruptcy proceedings. Examples of this include filing proofs of claim, objections to discharge and motions for Relief from Stay.

If you are facing a Houston Foreclosure, a Chapter 7 bankruptcy, Chapter 13 Bankruptcy, Chapter 11 Bankruptcy, IRS problems, creditor harassment, credit card debt, repossession, liquidation or debt collection issues you need a Houston Consumer Bankruptcy lawyer. Remember, this is no time to choose a law firm who occasionally dabbles with Bankruptcy cases.

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.

We are a Debt Relief Agency. We help people file for bankruptcy relief under the Bankruptcy Code. We have done so proudly since 1992.

"IMMEDIATELY CONTACT THE FEALY LAW FIRM
AT (866) 751-1087 FOR AN
UP FRONT, NO-HIDDEN-COST, ESTIMATE"

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