Bankruptcy Lawyer in Kingwood
We are a debt relief law firm. We help people file for relief under the Bankruptcy Code.
Bankruptcy is a process designed to help consumers and businesses eliminate or repay debts. When the bankruptcy is filed, a court order called an “automatic stay” becomes effective and prohibits creditors from taking any further action against the filing party. The automatic stay is extremely powerful…it can immediately stop debt collection/harassment, foreclosures, repossessions, lawsuits, judgments and garnishments. The creditor cannot proceed against a debtor in bankruptcy unless the automatic stay is lifted by the court.
Although the stigma of bankruptcy varies greatly from person to person, there are benefits which must be considered before a decision can be made as to whether it is the right option.
Many people fail to seek bankruptcy counseling because they do not have a clear understanding of what it can offer.
Whether a person is seeking to file personal bankruptcy or business bankruptcy, all the facts must be discussed and reviewed in order to accurately weigh the pros and cons.
Our firm offers a low-cost bankruptcy consultation so that the attorney can provide the prospective client valuable information regarding the entire bankruptcy process. In addition, the attorney will explain the different chapters of bankruptcy and whether bankruptcy is a good option.
In preparation of the initial consultation, you will need to gather and bring the following information:
- A list of creditors and individuals to whom you owe debts;
- A list of assets such as real property, vehicles and any other assets valued at over $2,000;
- A list of all sources of income for the household; and
- Any legal documents pertaining to lawsuits or judgments.
Unlike a Chapter 7 case, a person is not required to go through a means test to file a chapter 13. Provided a person has regular income to support the payment plan, they will more than likely be able to proceed with a chapter 13.
Some of the reasons a chapter 13 may be filed are:
- Stop foreclosure on real property
- Stop repossession of personal property, i.e. vehicles
- Stop garnishment and levy on non-dischargeable debt such as student loans and tax debt
- Save non-exempt assets that may be subject to liquidation in a chapter 7 case
- The individual does not qualify for chapter 7 and is required to pay a portion of their debts back over a three to five year period
In order to file a Chapter 7 bankruptcy, an individual must qualify by using the “means test”. The means test determines how much, if any, disposable income a person has to repay their debts. A Chapter 7 bankruptcy may also be available to certain individuals depending on whether they have a certain percentage of business debts, as opposed to consumer debts. A Chapter 7 bankruptcy stays on an individual’s credit 10 years from the date of filing. If a Chapter 7 bankruptcy is not an option for an individual, there may be other options
As a general rule, student loans are not dischargeable in bankruptcy.
However, there are some very narrow exceptions where student loans can be discharged. Each situation is different and whether or not the student loan can be discharged is fact specific for each case.