River Oaks Bankruptcy Attorney

Bankruptcy is a legal process that allows an individual or business to eliminate or restructure their debts. This is done under the supervision of the bankruptcy court. A bankruptcy attorney or lawyer can help guide you through the bankruptcy filing process. This includes determining which type of bankruptcy is right for your situation, filling out the necessary paperwork, and representing you in court.

If you live in the River Oaks area, and are considering filing for bankruptcy, it can be beneficial to seek the services of a River Oaks bankruptcy attorney. They are familiar with the bankruptcy court in the area. Additionally, a debt lawyer may be able to help you negotiate with creditors. This can establish a payment plan for taxes or loan debt. They can also help you examine other alternatives to bankruptcy.

A bankruptcy and debt lawyer from Steele Law Firm can help you understand your options. We can help you make an informed decision about how to proceed with your bankruptcy case. Our firm can also provide guidance on how to manage your finances in the future to avoid similar situations.

Chapter 7 and Chapter 13 are the two most common types of bankruptcy. These are filed by individuals and small businesses in the United States. Understanding the differences between the two is important when considering whether bankruptcy is the right option for you.

Chapter 7 bankruptcy is sometimes called "liquidation" bankruptcy. In a Chapter 7 case, a bankruptcy trustee is appointed to gather and sell the debtor's nonexempt assets to repay creditors. However, many types of assets are exempt from liquidation, meaning that they cannot be sold to pay off debts. Once the nonexempt assets have been liquidated, any remaining eligible debts are discharged. The debtor is no longer legally obligated to pay them. Chapter 7 bankruptcy is typically a good option for individuals who have limited assets and a lot of unsecured debt. This includes credit card debt and medical bills.

Chapter 13 bankruptcy is sometimes known as "reorganization" bankruptcy. In a Chapter 13 case, the debtor keeps their property. However, they agree to repay all or a portion of their debts over a period of three to five years. The repayment plan is based on the debtor's income, expenses, and the amount of debt owed. At the end of the repayment period, any remaining eligible debts are discharged. Chapter 13 bankruptcy is typically a good option for individuals who have a steady income and want to keep their assets, such as their home or car.

The main differences between Chapter 7 and Chapter 13 bankruptcy are:

• Asset Liquidation: In Chapter 7, nonexempt assets are liquidated to pay off creditors. Conversely, in Chapter 13, the debtor keeps their assets and repays creditors over time.
• Eligibility: To file for Chapter 7 bankruptcy, the debtor must pass a "means test.” This shows that their income is below a certain threshold. There is no means test for Chapter 13, but the debtor must have a steady income to repay their debts.
• Repayment Plan: In Chapter 7, there is no repayment plan because the debts are discharged. In Chapter 13, the debtor must propose a repayment plan that is approved by the court.
• Duration: Chapter 7 cases typically take three to six months to complete, while Chapter 13 cases can last three to five years.

It is important to note that bankruptcy can have long-term consequences. It is a decision that should be considered carefully.

Determining whether bankruptcy is right for you depends on your individual circumstances. Bankruptcy can be a helpful option for those who are struggling with overwhelming debt. However, it is not the right choice for everyone. Here are some factors to consider when deciding whether to file for bankruptcy:

• Your Debts: If you have unsecured debts such as credit card debt, medical bills, or personal loans that you cannot repay, bankruptcy may be a good option. However, if you have mostly secured debts, such as a mortgage or car loan, bankruptcy may not provide much relief.
• Your Income: Your income will help determine whether bankruptcy is right for you. If you have a low income and few assets, you may qualify for Chapter 7 bankruptcy. This allows for the discharge of most unsecured debts. If you have a higher income or more assets, Chapter 13 bankruptcy may be a better option. It allows for a restructured payment plan over a period of several years.
• Your Assets: When you file for bankruptcy, your assets may be subject to liquidation or seizure. If you have significant assets that are not protected by exemptions, bankruptcy may not be the right choice for you. An experienced bankruptcy attorney can help you understand which of your assets may be at risk.
• Your Credit Score: Filing for bankruptcy will have a negative impact on your credit score. However, if you are already struggling to make payments on your debts, your credit score may already be damaged. Bankruptcy can provide a fresh start and help you rebuild your credit over time.
• Other Options: Bankruptcy should be considered a last resort. There may be other options available to you, such as negotiating with creditors, entering a debt management plan, or seeking the help of a credit counselor.

Overall, determining whether bankruptcy is right for you will depend on your individual circumstances. Consulting with a bankruptcy attorney can help you understand the situation and make the most informed decision possible.

If you file for bankruptcy, you will need to attend a meeting with your creditors. This is a brief hearing where the bankruptcy trustee and your creditors can ask you questions about your finances. In some cases, you may also need to attend a court hearing.

Our bankruptcy attorney can prepare you for these proceedings. Our firm can also represent you in court if necessary. Here are some things you need to know before you go to bankruptcy court:

• Dress Appropriately: Dress professionally, as if you were attending a job interview.
• Arrive Early: Arrive at the courthouse early. This can give you time to find parking and go through security. Bring all the necessary documents required by the court. This includes your bankruptcy petition, schedules, and any other supporting documents.
• Be Prepared to Answer Questions: You may be asked questions by the trustee or the judge. Therefore, be prepared to provide clear and honest answers. Review your bankruptcy paperwork beforehand. That way, you are familiar with the details of your case.
• Stay Calm and Respectful: Stay calm and respectful, even if you are asked difficult questions or face opposition from creditors.

If you have any questions or concerns about going to bankruptcy court, our bankruptcy attorney can provide guidance and support throughout the process.

Q: Will I Lose All My Assets If I File for Bankruptcy?

A: No, you will not necessarily lose all your assets if you file for bankruptcy. Many assets are exempt from liquidation in Chapter 7 bankruptcy. In Chapter 13 bankruptcy, you can keep your assets and create a repayment plan based on your income. Consult with a bankruptcy attorney to determine which assets may be at risk of seizure.

Q: Will Bankruptcy Stop Creditor Harassment?

A: Yes, filing for bankruptcy will stop creditor harassment and collection actions, such as wage garnishment and foreclosure. When you file for bankruptcy, an automatic stay goes into effect. This prohibits creditors from taking any further action to collect the debt. This means that they must stop all collection activities, including phone calls, letters, and legal actions.

Q: Can Bankruptcy Help Me with Tax Debt?

A: It is possible to discharge certain types of tax debt through bankruptcy. However, it depends on the specific circumstances of your case. In general, tax debt can be discharged in bankruptcy if it meets the following criteria:

• The tax debt must be an income tax debt.
• The tax return for the debt must have been due at least three years before you filed for bankruptcy.
• The tax return for the debt must have been filed at least two years before the bankruptcy filing.
• The tax debt must have been assessed by the IRS at least 240 days before your bankruptcy filing.
• The tax debt must not be the result of tax fraud or willful evasion.

Q: Can I File for Bankruptcy More Than Once?

A: Yes, it is possible to file for bankruptcy more than once. However, there are restrictions on how often you can file and which type of bankruptcy you can file. For example, if you previously filed for Chapter 7 bankruptcy, and received a discharge, you must wait eight years before you can file for Chapter 7 again. However, you may be able to file for Chapter 13 bankruptcy sooner than eight years after a Chapter 7 discharge.

If you are struggling with overwhelming debt, and considering bankruptcy, it is important to have an experienced bankruptcy attorney on your side. Our River Oaks bankruptcy team at Steele Law Firm can help you understand your options. We can guide you through the bankruptcy process. Contact Steele Law Firm today to schedule a consultation and take the first step towards a fresh financial start.