When you get behind in paying off your debts, you may feel as if you will never be able to quite catch up; your mailbox may seem to be filling up with bills faster than you can deposit money into your bank account. The best course of action during a financial crisis is just that-to take action to alleviate your growing debt. Bankruptcy law in Texas is designed to help you navigate through the options you have available to you; but it is usually best to have an attorney on your side when you are considering bankruptcy. You need someone who can tell you about the different kinds of bankruptcy, and to walk you through the undeniable repercussions to your credit. While bankruptcy should never be a first option for you if you are in a financial bind, bankruptcy law in Texas does make it available to those individuals who are running out of choices.
Chapter 7 Bankruptcy
Most people who decide to file bankruptcy end up filing Chapter 7. The Chapter 7 section of the Bankruptcy Law in Texas is sometimes called “liquidation bankruptcy”. The essence of Chapter 7 bankruptcy is that an individual (or business) turns over their assets and debts to a trustee; who then sells off those assets in attempt to liquidate them for cash to divide among creditors.
Chapter 13 Bankruptcy
Another section of the Bankruptcy Law in Texas includes what is known as the “wage-earner plan”, or Chapter 13. This type of bankruptcy is meant for people with somewhat stable incomes who would like to repay a portion of their debts, but are currently not able to do so. An individual may consider Chapter 13 if he or she believes the financial crisis is temporary, and their income will rise sufficiently in the future to pay off what their current debt. The advantage of Chapter 13 is that the debtor is allowed to keep his or her property while working out a court-approved repayment plan. Businesses are not allowed to file Chapter 13, according to the Texas Bankruptcy Law.
Busby and AssociatesÂ
For help with your questions about Bankruptcy Law in Texas, credit counseling, or credit repair, call Busby & Associates at (713)974-1151. We have a team of knowledgeable, patient attorneys who will work with you to create a solution to your financial problems. Don’t wait until your debts get too far out of control-call us today and let us help you make the bankruptcy laws in Texas work for you.
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