Harle & Scheff, PLLC | Chapter 7 & 13 Bankruptcy Representation
Compassionate, Careful, Serious, Dedicated
Debt collectors call repeatedly and at all hours. No matter how many times you tell them you have no money to pay them, they continue to call. Bankruptcy is not always the answer when you are financially over your head. But when bankruptcy is the answer, it can provide instant relief from collection calls, and allow you and your family to get back on your financial feet.
Bankruptcy is designed to allow people who have gotten into financial hot water a fresh start. Medical emergencies, college costs, loss of a job, accident, illness or divorce are just a few unexpected events that can wreck your budget. The debt relief laws are designed to fairly help you. Although the federal bankruptcy courts are located in Houston, people in Austin, Waller, Washington and Fayette County still need access to them.
Bankruptcy offers two general roads to relief. Chapter 7 of the Bankruptcy Code requires a debtor to turn non-exempt property over to a bankruptcy trustee, who will pay off creditors of different classes as far as the money will go. The Bankruptcy Code allows you to make much property exempt–not available to pay off these debts. A bankruptcy classified as a “no assets case” is one in which some creditors will receive nothing. Property such as cars and homes must be addressed with the lender.
Chapters 11 and 13 are business and personal reorganizations under which you develop a plan to pay off a percentage of what is owed over a period of time, usually, three to five years. The Court must believe you are able to meet the terms of your plan and still carry on your life. Once that percentage of debt is paid off, the rest is discharged, and is no longer legally collectable. The Bankruptcy Code is complex, but offers a lot of possibilities.
Although bankruptcy is not a magic bullet, it can solve many financial crises. In order to file, you must provide exhaustive information about your financial situation. How much you earn and spend, what you own--in great detail, your financial dealings for the past several years, your monthly budget, the names and addresses of all your creditors, and your financial intentions.
Most bankruptcies are straightforward. Others can involve adversarial proceedings when one or more claims or debts are disputed. Even the simplest bankruptcy involves much preparation and planning and must be handled with great care and attention. When successful, bankruptcy can provide a fresh start to your financial future.
If the burden is too heavy and bankruptcy is looming, call Jerry S. Scheff today at 979-865-3198.