Many people need a fresh start in their financial lives, which is why they turn to Houston bankruptcy lawyer for information and counsel. A bankruptcy lawyer can help their clients decide whether a Chapter 7 or a Chapter 13 is more appropriate for their situation. Clients should consider the aspects of both of these options in order to make the best decision.
Chapter 7 Bankruptcy
A Chapter 7 bankruptcy essentially wipes out the filer’s debts and results in a liquidation of assets to help pay down money owed to creditors. A designated trustee will sell all of the assets and begin paying the creditors before paying the filer any exempted proceeds. Usually, large credit card and other unsecured debts, along with a few types of assets, will qualify for this type of bankruptcy. An attorney may be able to help negotiate the filer’s ability to keep debts such as furniture, housing or cars, as long as a “Reaffirmation Agreement” is reached. In this type of agreement, the filer agrees to bring the debt current, ensure repayment and not file for bankruptcy on the debt for at least eight years.
Chapter 13 Bankruptcy
Under a different type of bankruptcy—a Chapter 13—a Houston bankruptcy lawyer will help the debtor to propose a three to five year repayment plan to his or her creditors, paying off part or all of the debts from future income. A Chapter 13 may help to prevent home foreclosure, car repossession, back taxes fines and interest accruement. As long as the debtor sticks to the repayment plan, the remaining dischargeable debt will be released by the end of the term. Another aspect of Chapter 13 that is often overlooked is that the total amount paid to creditors under this bankruptcy may be at least as much as they would have received under Chapter 7. Debtors who wish to keep secured assets, such as homes and cars, and who have more equity in these secured assets than they can protect with Texas bankruptcy exemptions, will often be counseled by Houston bankruptcy lawyers to choose Chapter 13.
Fresh Start after Bankruptcy
Debtors who are looking for a fresh start with bankruptcy may not be sure of all of the options available to them, which is why they should turn to an experienced Houston bankruptcy lawyer. These attorneys can help to navigate through the bankruptcy filings, and they can also offer debt counseling and relief when that type of step would be more appropriate. Busby and Associates offers our clients the services of experienced, compassionate bankruptcy lawyers who are ready to help them begin a fresh financial start. Call us today at (713) 974-1151.
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