Written by Robert DeMarco
Understanding the Different Types of Bankruptcy for Individuals in Texas
If you’re struggling with debt and considering bankruptcy as a solution, it’s essential to understand the different types of bankruptcy available for individuals in Texas. At DeMarco Mitchell, PLLC, our experienced bankruptcy attorneys can help you navigate the complexities of bankruptcy law and determine the best course of action for your unique situation. In this blog post, we will provide an overview of the various bankruptcy options, their advantages and limitations, and how we can assist you in making an informed decision.
Schedule a free consultation with our experienced bankruptcy attorneys to discuss your options and find the best solution for your financial situation.
Chapter 7 Bankrupcy
Chapter 7 bankruptcy, also known as “liquidation” bankruptcy, is the most common type of personal bankruptcy in Texas. It allows individuals with limited income and assets to eliminate most, if not all, of their unsecured debts, such as credit card debt, medical bills, and personal loans. In a Chapter 7 bankruptcy, a trustee is appointed to liquidate non-exempt assets and distribute the proceeds to creditors.
Advantages:
- Quick process, typically completed within 3-6 months
- Provides a fresh financial start by eliminating most unsecured debts
- Allows you to keep certain exempt assets, such as your home, car, and personal belongings
Limitations:
- Not available to individuals with higher income levels, determined by the “means test”
- May result in the loss of non-exempt assets
- Does not discharge certain debts, such as student loans, taxes, and child support
If you think Chapter 7 bankruptcy might be the right option for you, contact DeMarco Mitchell, PLLC to discuss your situation with one of our skilled bankruptcy attorneys.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy, also known as “reorganization” bankruptcy, is designed for individuals with a regular income who want to keep their assets and repay their debts over time. In a Chapter 13 bankruptcy, you will propose a repayment plan that lasts 3-5 years, during which you will make monthly payments to a trustee, who then distributes the funds to your creditors.
Advantages:
- Allows you to keep your assets, including your home and car
- Provides an opportunity to catch up on missed mortgage or car payments
- May allow for the discharge of some unsecured debts after the completion of the repayment plan
Limitations:
- Requires a regular income to make monthly plan payments
- Longer process, lasting 3-5 years
- May not discharge all unsecured debts
If you have a steady income and want to protect your assets while repaying your debts, contact DeMarco Mitchell, PLLC to learn more about Chapter 13 bankruptcy and how we can help.
Take Control of Your Finances Today
Understanding the different types of bankruptcy available for individuals in Texas is the first step in determining the best course of action for your financial situation. Both Chapter 7 and Chapter 13 bankruptcies have their advantages and limitations, and the experienced attorneys at DeMarco Mitchell, PLLC can help you decide which option is right for you.
Call to Action: Don’t let debt control your life any longer. Contact DeMarco Mitchell, PLLC today to schedule a free consultation with one of our knowledgeable bankruptcy attorneys, and take the first step toward a brighter financial future.
.
Filing for Bankruptcy in Texas? Contact DeMarco Mitchell, PLLC!
Chapter 7 Attorney: A Guide to Navigating Bankruptcy and Choosing the Right Legal Representation
Chapter 7 Attorney: A Guide to Navigating Bankruptcy and Choosing the Right Legal Representation Are you considering filing for Chapter 7 bankruptcy? Navigating through the complexities of bankruptcy law can be overwhelming, but with the help of a knowledgeable...
Navigating Chapter 7 Bankruptcy in Texas: Key Roles of a Texas Bankruptcy Lawyer and When to Consult One
Navigating Chapter 7 Bankruptcy in Texas: Key Roles of a Texas Bankruptcy Lawyer and When to Consult One Are you grappling with overwhelming debts and contemplating bankruptcy as a possible way out? Are you unsure about the proceedings and when to take that pivotal...
What Happens When You File for Bankruptcy in the State of Texas?
Written By Robert DeMarcoWhat Happens When You File for Bankruptcy in Texas? Filing for bankruptcy is not an easy decision to make. It can be a stressful and overwhelming process, but it may be necessary for those who are struggling with debt. Bankruptcy laws and...