Frequently Asked Questions
Whether you are struggling to pay your debts or you want to take steps to protect your assets and estate in the future, you likely have many questions. The following are some examples of questions our bankruptcy and estate planning attorney Abraham “Avi” Bloomenstiel regularly hears.
To discuss your specific circumstances and concerns, please set up your consultation with our firm today.
What is bankruptcy, and how does it work?
Bankruptcy is a legal process that allows households or businesses struggling with overwhelming debt to seek relief from their financial obligations. It involves filing a petition in court, which, depending on the type of bankruptcy, can lead to the discharge of certain debts or the creation of a manageable repayment plan.
There are different types of bankruptcy cases that work in different ways to provide debt relief. The best way to know if bankruptcy is right for you and get an idea of the process is to speak with our legal team today.
What is Chapter 7 bankruptcy, and who qualifies for it?
Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” involves the sale of non-exempt assets to repay creditors, after which remaining eligible debts are discharged. To qualify, you must pass a means test, demonstrating that your income is below a certain threshold relative to your household size.
If you qualify, you might have your eligible debts wiped clean without the need for a repayment plan with the bankruptcy court.
What is Chapter 13 bankruptcy, and who should consider it?
Chapter 13 bankruptcy, known as “reorganization bankruptcy,” allows you to create a structured repayment plan for your debts over three to five years. This option is suitable for those with a steady income who want to protect valuable assets, such as homes, and catch up on missed mortgage or car payments. While you must complete a repayment plan with the court, you will not have to liquidate any of your assets to obtain a discharge of eligible debts and achieve financial relief.
Why is estate planning important, and what does it entail?
Estate planning is critical for all adults in ensuring that your assets are distributed according to your wishes after your passing. It involves creating legal documents like wills, trusts, and powers of attorney to manage your affairs. Additionally, it allows you to appoint guardians for minor children, plan for healthcare decisions, and potentially minimize tax liabilities on your estate.
Estate planning will protect you, your loved ones, and your assets when completed properly with legal assistance.
A Texas Bankruptcy and Estate Planning
Attorney Ready to Answer Your Questions
If you’re facing financial difficulties or need to secure your assets, don’t wait. Schedule a consultation with knowledgeable bankruptcy and estate planning lawyer Avi Bloomenstiel today. Our firm provides guidance on your legal concerns and questions.
Whether it’s regarding a possible bankruptcy or crafting a comprehensive estate plan, acting promptly with the right legal assistance ensures you have a clear path towards financial stability and the protection of your legacy.
Don’t delay, get the help you need now. Contact our firm to schedule an appointment.