Posted on February 28, 2025 in Chapter 11 Bankruptcy

Chapter 11 bankruptcy is known as the "reorganization" bankruptcy that allows filers to reorganize their debt. It is usually utilized by businesses wishing to file bankruptcy while continuing to operate their companies.

Yet Chapter 11 bankruptcy is not just for businesses. Individuals may also qualify to file for Chapter 11 bankruptcy, and in some cases may have to file for Chapter 11 if they do not qualify for Chapter 13. An experienced Houston, TX Chapter 11 bankruptcy attorney can answer your questions about whether filing for Chapter 11 bankruptcy as an individual is the right choice for you. 

How Does Chapter 11 Bankruptcy For Individuals Work?

Eligibility

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 Posted on February 20, 2025 in Bankruptcy

Filing for bankruptcy is a complex and personal decision. One of the factors influencing the decision to file for bankruptcy may be concern about the bankruptcy process itself. After all, bankruptcy is a complex legal process. If you are wondering whether bankruptcy is right for you, you may have questions about the role of the bankruptcy attorney. Speak to an experienced Liberty County, TX bankruptcy attorney who can explain the role of the bankruptcy attorney.

Help You Decide Which Type of Bankruptcy to File

One of the key roles of a bankruptcy attorney is to provide legal advice based on your specific situation as it applies to bankruptcy law. Your bankruptcy attorney will explain the bankruptcy process to you and answer any questions you may have. Your attorney will, for example:  

• Advise you on the benefits of filing Chapter 7 versus Chapter 13 bankruptcy, and which type is right for you.

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 Posted on February 14, 2025 in Bankruptcy

Businesses facing financial distress and considering bankruptcy may file Chapter 7 bankruptcy. Another option for many businesses is Chapter 11 bankruptcy, which is commonly known as the "business bankruptcy" because it is primarily meant for businesses. It is also referred to as the "reorganization" bankruptcy because it allows businesses to reorganize their debts while staying in business.

As of 2019 Congress and the Small Business Reorganization Act (SBRA) created a third option for businesses called Chapter 11 Subchapter V, which offers a more affordable and simplified method that can be especially attractive for small businesses. An experienced Texas bankruptcy attorney advises businesses on the pros and cons of the relevant bankruptcy chapters available to businesses in financial trouble.

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 Posted on February 07, 2025 in Chapter 7 Bankruptcy

Two of the most used terms in bankruptcy are secured debt and unsecured debt. These types of debts are treated differently in Chapter 7 bankruptcy. Understanding what these terms mean and what happens to secured versus unsecured debt in Chapter 7 can give you an idea of what may happen to your debts when you file for Chapter 7 as far as whether they will be discharged or whether your obligations to pay will continue. An experienced Houston, TX bankruptcy attorney can advise you on how your debts are likely to be treated in Chapter 7 bankruptcy.

How Does Chapter 7 Bankruptcy Work?

In Chapter 7 bankruptcy, the bankruptcy trustee will take all your assets that are not exempt (exempt assets usually include your home and car in Texas), sell them, and distribute the proceeds to your creditors. This will discharge or wipe out most of your debts (with some exceptions such as child support and tax debts).

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 Posted on January 30, 2025 in Bankruptcy

For people unfamiliar with the bankruptcy process, it may seem complex and unapproachable. Yet it is possible to understand how bankruptcy will affect you and how you can protect yourself. One thing to keep in mind is that in bankruptcy creditors will seek to recover the debt you owe them within the bankruptcy framework. The process by which creditors do so begins by filing what is called a "proof of claim." 

Much like it sounds, a proof of claim lays out the proof for the claim that the creditor wants to recover from the bankruptcy estate. It is possible to object to a creditor claim depending on the facts of your case, and an experienced Galveston, TX bankruptcy attorney can object to creditor claims on your behalf. 

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 Posted on January 22, 2025 in Bankruptcy

For all that bankruptcy can be an effective way to move past financial difficulties, people hold many myths and misconceptions about bankruptcy. Still, it is understandable to be concerned when considering bankruptcy. After all, for most people bankruptcy is a new process and can seem intimidating and complex.

The best way to move past these misconceptions is to research information about bankruptcy and to speak to an experienced Houston, TX bankruptcy attorney about what bankruptcy could actually mean for you — and how it can help you get out from under serious debt.

Myth 1: Bankruptcy Will Permanently Ruin Your Credit

This is one of the biggest and most common myths about bankruptcy. Although a bankruptcy filing can negatively affect credit, and although it stays on a credit report for up to 10 years, that is not the end of the story. Often, people will see their credit actually improve following their bankruptcy filing, especially if they started out with low credit. Additionally, because bankruptcy gives people a financial fresh start, it can make it easier to keep up with payments, which can help increase credit scores.

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 Posted on January 15, 2025 in Chapter 13 Bankruptcy

In Chapter 13 bankruptcy, debts are discharged after you pay off your bankruptcy plan. In most cases, debtors in Chapter 13 have three to five years to pay off the plan, after which time the Chapter 13 discharge occurs.

What happens if a debtor wants to pay off the Chapter 13 early? Can they do that? Although paying off Chapter 13 early is possible, it is not easy. Contact an experienced Houston, TX Chapter 13 bankruptcy attorney to discuss the possibility of obtaining an early discharge in Chapter 13.  

How Does Chapter 13 Bankruptcy Work?

When you file Chapter 13 bankruptcy, you keep all your property and make a repayment plan to pay off part or all of your debt with monthly payments during the payment plan period, which lasts from three to five years.

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 Posted on January 05, 2025 in Chapter 7 Bankruptcy

Even if you have decided to file bankruptcy because you know it is the best option for you and a way to get a fresh financial start, you may still understandably be concerned about losing your property. You might have heard that part of the Chapter 7 bankruptcy process involves selling your assets to pay off your debt, and while that is accurate to an extent, it is not the full story.

Whether it is your home – perhaps your most important asset – or a favorite piece of jewelry, some assets become part of the bankruptcy estate while others are exempt, meaning you can keep them. Find out which assets you may keep in Chapter 7 bankruptcy by having a conversation with an experienced Houston, TX attorney.

How Do Chapter 7 Bankruptcy Exemptions Work?

In Chapter 7 bankruptcy, your non-exempt assets are sold to pay off creditors. The key word here is "non-exempt." Bankruptcy allows you to keep assets that are exempt. Texas has a particularly favorable list of exempt assets and even allows you to choose between federal and state exemptions. You can make that decision by considering the assets you own and the assets you wish to keep, and of course by getting advice from a qualified attorney as to whether it is better for you to choose the Texas or federal exemptions.

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 Posted on December 31, 2024 in Bankruptcy

Bankruptcy can be a great tool to get back on track if you have a great deal of debt, but it is also a significant decision that can affect many areas of your financial life. If you rent your home or apartment, you should know how bankruptcy can affect your rental lease. A qualified Galveston, TX attorney can advise you on the effect bankruptcy may have on your rental. 

Effect of Bankruptcy on Rental Agreements 

If you are current on your rent, bankruptcy will not affect your rental. A landlord cannot evict you merely because you have filed for bankruptcy. If you are behind on rent, you may wonder if and how bankruptcy can affect your obligations as a tenant. This is a complex area of the law and the effect of bankruptcy will depend on the facts of your case, but there are some important points to keep in mind:

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 Posted on December 23, 2024 in Bankruptcy

When you offer a personal guarantee on a business debt, you take on personal liability for that debt. If you gave a personal guarantee but are now going through financial troubles, you are likely concerned about being on the hook for that debt. You may be wondering if bankruptcy discharges personal guarantees. The good news is that it is often possible to discharge or erase a personal guarantee in bankruptcy. An experienced Texas bankruptcy attorney can represent you in bankruptcy and work to discharge your personal guarantee.   

How Do Personal Guarantees Work?

When you give a personal guarantee, your creditor may go after you personally for that debt, even if the original debt is in the name of a business. For example, a landlord may require you to sign a personal guarantee in order to lease office space for your business. If you later break the lease, the landlord will be able to go after you personally based on this personal guarantee.

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