Fort Worth Chapter 7 Bankruptcy Lawyer
Get Debt Relief and a Fresh Start
Unmanageable debts can cast a cloud over your future. Many people though, can get debt relief through the bankruptcy system.
We are Mitchell & Malone, a law firm dedicated to helping people get debt relief and a fresh financial start. We take full advantage of federal and Texas bankruptcy laws to help our clients obtain maximum debt relief while keeping as much of their property as possible.
Call us today for a free initial case evaluation. It could be the first step toward a brighter financial future for you and your family.
Debt Relief Through Chapter 7 Bankruptcy
Chapter 7 bankruptcy is a debt liquidation process that enables many people to completely eliminate unsecured debts such as credit card debts, medical bills and personal loans. Most people filing Chapter 7 bankruptcy can keep most or all of their property.
Our Fort Worth Chapter 7 bankruptcy attorneys have helped many people get debt relief, and we want to help you. An attorney at our firm can review your situation and determine the best course of action for you. A means test must be met in order to qualify for Chapter 7, but in fact, most people qualify for Chapter 7 rather than Chapter 13.
The Chapter 7 Bankruptcy Process
When you hire our firm to represent you, creditor harassment can stop. Simply refer all calls from creditors to our office. We will take care of the rest.
A lawyer at our firm will develop a debt liquidation plan designed to obtain maximum debt relief while enabling you to keep your property. Once we file your bankruptcy petition, repossession actions, garnishments and collection lawsuits will stop. Your only responsibilities will be to attend two brief debt management courses and a hearing before the bankruptcy trustee. Our firm will represent you at this hearing, seeking to reduce your debts to the greatest extent possible and protect your property.
We charge reasonable flat fees for representation in Chapter 7 andChapter 13 bankruptcy cases.
Call 817-554-0222 for a Free Case Evaluation
To learn how we can help you reduce your financial debts and get a fresh start, call us today at 817-554-0222 to schedule a free initial case evaluation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Advantages to a Texas Chapter 7 filing:
You receive a complete fresh start. After the bankruptcy is discharged the only debts you owe will be for secured assets on which you choose to sign a “Reaffirmation Agreement.”
You have immediate protection against creditor’s collection efforts and wage garnishment on the date of filing. Wages you earn and property you acquire (except for inheritances) after the bankruptcy filing date are yours, not the creditors or bankruptcy court. There is no minimum amount of debt required. Your case is often over and completely discharged in about 3-6 months.
Disadvantages to a Texas Chapter 7 filing:
You lose your non-exempt property which is sold by the trustee. If you want to keep a secured asset, such as a car or home, and it is not completely covered by your Texas bankruptcy exemptions then Chapter 7 is not an option. If facing foreclosure on your home, the automatic stay created by your Chapter 7 filing only serves as a temporary defense against foreclosure.
Co-signors of a loan can be stuck with your debt unless they also file for bankruptcy protection.
If you filed a prior case and received a discharge of your debts, you can only file a second Chapter 7 bankruptcy case eight years after you filed the first case.
Advantages to a Texas Chapter 13 payment plan:
If you choose and you can afford the payment plan, you can keep all your property, exempt and non-exempt. While debts are not canceled as in a Chapter 7 discharge they can be reduced under a Chapter 13 payment plan. You have immediate protection against creditor’s collection efforts and wage garnishment. More debts are considered to be dis-chargeable (including debt you incurred on the basis of fraud and credit card charges for luxury items immediately prior to filing).
If the Chapter 13 plan provides for full payment, any co-signers are immune from the creditor’s efforts.
You have protection against foreclosure on your home by your lender as long as you meet the terms of the plan. You have more time to pay debts that can’t be discharged by either chapter (like taxes or back child support). You can file a Chapter 13 at any time. You can file repeatedly. You can separate your creditors by class where different classes of creditors receive different percentages of payment. This enables you to treat debts where there is a co-debtor involved on a different basis than debts incurred on your own.
Disadvantages to a Texas Chapter 13 payment plan:
You create a payment plan where you use your post bankruptcy income. This ties up your cash over the Chapter 13 plan period. Legal fees are higher since a Chapter 13 filing is more complex. Your plan and therefore your debt will last for 3 to five years. You are involved in the bankruptcy court process for the term of the 3-5 year plan. Stockbrokers, and commodity brokers cannot file a Chapter 13 bankruptcy petition.
Texas Chapter 7 bankruptcy information
In a Chapter 7 bankruptcy you wipe out your debts and get a “Fresh Start”. Chapter 7 bankruptcy is a liquidation where the trustee collects all of your assets and sells any assets which are not exempt. (see Texas Exemptions) The trustee sells the assets and pays you, the debtor, any amount exempted. The net proceeds of the liquidation are then distributed to your creditors with a commission taken by the trustee overseeing the distribution.
Certain debts cannot be discharged in a Chapter 7 bankruptcy, such as alimony, child support, fraudulent debts, certain taxes, student loans, and certain items charged. (see Texas Non-Dis-chargeable Debts) In most Chapter 7 cases, the debtor has large credit card debt and other unsecured bills and very few assets. In the vast majority of cases a Chapter 7 bankruptcy is able to completely eliminate all of these debts.
You may keep certain secured debts such as your car or your furniture or house by reaffirming those debts. To do so, you must sign a voluntary “Reaffirmation Agreement”. If you decide that you want to keep your house or your car or your furniture, and you reaffirm the debt, you cannot bankrupt (or wipe-out) that debt again for eight years. You will still owe that debt and you must continue to pay it just as you were obligated to continue to pay it before you filed bankruptcy. In order to reaffirm the debt, you must also bring it current. In other words, if you are three or four months behind, then you must pay the back payments which are due in order to reaffirm it. You can selectively reaffirm your debts – you can state that you wish to keep the house and the furniture, but that you want the car and the jewelry to go back to the respective Creditors.
Reaffirmation agreements can be set aside during the earlier of 60 days after the agreement is filed with the Court, or upon the Court’s issuance of an Order of Discharge.