Financial difficulties can happen to anyone. Whether caused by job loss, medical bills, or credit card debt, various circumstances can lead to the need to file for bankruptcy. Filing for Chapter 7 and Chapter 13 bankruptcy may enable you to keep your vehicle, home, and other property while allowing you to get back on your feet.
Rochelle McCullough, LLP, has extensive experience representing individuals and businesses in Fort Worth, TX, bankruptcy cases. We will skillfully help you understand the different types of bankruptcy filings so you can make informed decisions about your case.
What’s the Difference Between Chapter 7 and Chapter 13 Bankruptcy?
Chapter 7 and 13 bankruptcies are common types of bankruptcy filings. Both options can help you stop creditors from harassing you for payments while giving you time to figure out a plan to move forward financially. However, there are important differences in terms of eligibility and what will happen at the end of the bankruptcy process.
Chapter 7 bankruptcy is frequently called liquidation bankruptcy, which enables you to discharge some or all of your debts. If you have little disposable income and you’re able to pass a means test, you may be eligible to file for a Chapter 7 bankruptcy.
Chapter 13 bankruptcy allows you to discharge or reduce some of your debts, but you’ll be required to repay a portion of your debts. Over a period of three to five years, you’ll need to pay one monthly payment in an amount approved by the bankruptcy trustee overseeing your case.
Filing for Chapter 11 Bankruptcy in Fort Worth
Commonly referred to as a “reorganization” bankruptcy, a Chapter 11 bankruptcy allows businesses to keep operating while they restructure their finances in a way that helps them manage their debts. If your company has struggled to manage its debt, you may want to consider filing for Chapter 11 bankruptcy in Fort Worth, Texas.
Sole proprietors, partnerships, limited liability companies (LLCs), corporations, and other types of businesses are eligible under Chapter 11. Although less common, individuals with debts too large to be eligible for Chapter 13 may be able to file under Chapter 11.
Which Debts Cannot Be Discharged Through a Bankruptcy?
Understanding which debts can and cannot be discharged is essential when deciding whether to file for bankruptcy. When you file for Chapter 7 or Chapter 13 bankruptcy, the court will put an automatic stay on some of your debts, such as your utility bills, credit card balances, car loans, and obligations related to an eviction or foreclosure. However, some types of debts cannot be discharged through bankruptcy, including:
- Certain types of tax debts
- Property liens
- Some student loan debt
- Spousal and child support obligations and arrears
- Compensation from personal injury lawsuits
- Fraud-related debt
There may be exceptions in some cases. If you work with an experienced attorney, your attorney can help you make as much of your debt possible eligible for discharge. Working with an attorney who will carefully review your debts, finances, and assets to determine which debts may and may not be included in your bankruptcy is essential.
The Process of Filing for Bankruptcy in Fort Worth, Texas
Filing for bankruptcy may seem intimidating, but the attorneys at Rochelle McCullough, LLP, will help you navigate the process as smoothly as possible. The process will begin when you file a bankruptcy petition, a formal legal document providing details of your financial situation and indicating the type of bankruptcy you’re pursuing.
After you submit your petition, the court will place an automatic stay, a legal injunction that prevents creditors from pursuing foreclosure, wage garnishment, or repossession, providing you time and space to navigate the legal proceedings. You’ll attend the Meeting of Creditors between 20 to 40 days after you file. The meeting usually occurs over the phone and involves the trustee overseeing your case and creditors to ask you questions about your financial affairs.
The trustee will meticulously review all of the details in your petition, conduct the 341 creditor meeting, and ensure your petition complies with bankruptcy laws. If you file for Chapter 7, the trustee will liquidate your non-exempt assets. If you filed for Chapter 13, the creditor will supervise the repayment plan. This thorough review process is designed to ensure your case is handled with the utmost care and attention.
Before receiving a discharge of your debt, you’ll need to complete financial management and credit counseling courses. These courses are designed to help you manage your finances better in the future. If disputes arise related to fraud, non-dischargeability of debt, or objections to exemptions, you may need to address them in a separate legal action. Ultimately, if your case is successful, the court will discharge your debts.
Even after your debts have been discharged, you may still have to pay secured debts, child support, and certain tax obligations. While continuing to pay these bills, you’ll begin rebuilding your credit score by making responsible financial management.
Is Bankruptcy the Right Option for Me?
Filing for bankruptcy can be an invaluable tool for keeping your home and vehicle and eventually erasing most of your debts. However, it isn’t the most strategic solution for every person or business.
Depending on your unique circumstances, pursuing debt consolidation or having an attorney negotiate directly with your creditors to pursue debt relief could be your best option. The experienced bankruptcy attorneys at Rochelle McCullough, LLP regularly help clients with a wide range of debt-related issues, including, but not limited to, the following:
- Foreclosure
- Repossession
- Wage garnishment
- Tax debt relief
- Credit card debt
Our debt relief attorneys will carefully and comprehensively examine your financial situation to help you find solutions that meet your needs and goals. We provide all our clients with the personalized, responsive legal representation they deserve.
Contact Our Fort Worth Bankruptcy Attorney Today
If you or your business are facing significant financial challenges, the Rochelle McCullough, LLP team is here to help you. We provide our clients with comprehensive, strategic legal representation. Our team will handle every aspect of your bankruptcy case from start to finish. Contact our Fort Worth bankruptcy attorneys at Rochelle McCullough, LLP to schedule a consultation.
We extend our bankruptcy legal services to help clients throughout Texas, including Dallas, & Fort Worth.