Bankruptcy Attorneys In Plano, TX

If you are considering filing for bankruptcy in Texas, your first step should be to discuss your situation with experienced bankruptcy attorney Abraham Bloomenstiel. Our firm handles consumer bankruptcy cases for clients in many different situations, and we can assess your best options.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy, also known as “liquidation bankruptcy,” is a legal process designed to provide consumers and businesses overwhelmed by debt with a fresh start. To qualify for Chapter 7, individuals must pass a means test, demonstrating an inability to repay debts based on income and expenses.

Under Chapter 7, a court-appointed trustee sells non-exempt assets to repay creditors, providing immediate relief from debt. Certain assets, like essential personal belongings and specific types of property, are typically exempt from liquidation.

Unlike Chapter 13, Chapter 7 does not involve a repayment plan. Once non-exempt assets are liquidated, remaining eligible debts are discharged. Some debts, such as child support, alimony, student loans, and certain taxes, cannot be discharged through Chapter 7. However, many people find significant financial relief from the discharge process. After successful discharge, individuals can begin rebuilding their financial lives, free from overwhelming debt.

Chapter 7 bankruptcy provides a lifeline for those struggling with unmanageable debt, offering the chance for a fresh financial start. While it has its complexities, seeking professional guidance from a qualified bankruptcy attorney ensures a smoother process and maximizes your financial benefits of this legal relief.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy, often referred to as “reorganization bankruptcy,” offers consumers an opportunity to restructure their debts and establish a manageable repayment plan. Individuals and sole proprietors with regular income may qualify for Chapter 13, as long as their unsecured and secured debts fall within specified limits.

Unlike Chapter 7, Chapter 13 involves creating a structured repayment plan over three to five years, allowing debtors to catch up on missed payments and satisfy eligible debts. However, debtors retain possession of their property and assets, as long as they adhere to the repayment plan.

The repayment plan should be tailored to the debtor’s income, expenses, and debt load, providing a structured and manageable approach to debt resolution. Upon successful completion of the repayment plan, remaining eligible debts may be discharged, offering a fresh financial start.

Chapter 13 bankruptcy might be the right choice if you do not pass the means test for Chapter 7 or have property you want to retain. This process empowers you to regain control of your financial future. Through a structured repayment plan, you can manage their debts while protecting their assets. Seeking professional advice from an experienced bankruptcy attorney critical in successfully utilizing Chapter 13 to achieve long-term financial stability.

Speak with a Texas Bankruptcy Attorney Right Away

While the bankruptcy process allows you to address overwhelming debt, it can be complicated, and any errors can jeopardize the benefits you experience. Always discuss a possible bankruptcy case with attorney Bloomenstiel and our legal team. We can advise which type of bankruptcy is best for you and guide you through the process.

Contact our firm today for more information at 972-881-9700.