Facts about Bankruptcy in Houston and How the Right Firm Can Help

Nov. 5, 2010 - PRLog -- Understanding what bankruptcy is and how it will affect you now and in the long run is an important part of the decision-making process associated with this form of debt relief. Bankruptcy is essentially a way for a debtor to temporarily suspend debt collection proceedings and to then eliminate eligible debt. This is primarily accomplished in one of two ways, through the liquidation of property (typically Chapter 7) or a reorganization of debt (typically Chapter 13 or 11). At the end of the bankruptcy proceedings, all eligible debt will be discharged. The debtor will no longer have any obligation to pay this debt and cannot be held accountable for its payment by the creditor or a debt collection agency. The two most common forms of bankruptcy are Chapter 7 and Chapter 13.

Chapter 7, often referred to as straight bankruptcy, involves the liquidation of a debtor’s assets to pay off creditors. Although “liquidation” is involved with this form of bankruptcy, this does not mean that a debtor will always lose all of his or her property. Both state and federal bankruptcy laws provide for exemptions for certain property and assets. In Texas, a debtor may choose either the state or federal exemptions to protect his or her property. To qualify to file under Chapter 7, a debtor must first pass the means test to determine whether he or she has the wherewithal to make payments under a Chapter 13 filing.

Chapter 13 bankruptcy involves the debtor creating a payment plan to pay off part or all of his or her debt over a 3 to 5-year time period. This payment plan must be approved by the bankruptcy court and is based upon the debtor’s disposable income, calculated by subtracting necessary expenses from his or her income. Chapter 13 bankruptcy can offer a viable option to stop foreclosure and save one’s home, depending on the circumstances.

If you would like to get more information about bankruptcy and how it may help you, do not hesitate to contact the Malaise Law Firm at http://www.houstonbankruptcylawfirm.com/. The firm represents debtors throughout Texas and offers knowledgeable advice and practical solutions to help clients experience the many advantages that bankruptcy has to offer.

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The Malaise Law Firm is a preeminent bankruptcy and personal injury law firm serving Texas. We have more than 40 years of experience and can assist your at our offices in Houston, San Antonio, Dallas, South Texas, and Fort Worth. The time immediately following an accident resulting in a personal injury or the time following the decision to file for bankruptcy or can be wrought with emotional distress, but you do not have to face something like this on your own. By working with an experienced lawyer from our firm, you can take the steps necessary towards putting your life back on track once more and obtaining stability. For more information about our firm and how we can help you, do not hesitate to visit our site at http://www.malaiselawfirm.com/.