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Word Count: 414 Level the playing field and get a fresh start
Many people struggle with the decision to file bankruptcy, mostly because
they have misconceptions about bankruptcy. Basically, bankruptcy is a legal way
to level the playing field between an individual debtor and the creditors. It is
a legal proceeding that provides the debtor with a fresh start. There are two
types of bankruptcy that are most commonly available for an individual: Chapter
7 and Chapter 13.
Chapter 7, or straight bankruptcy, is what most people typically think of as
bankruptcy. In this Chapter, a debtor’s non-exempt assets are liquidated or sold
and the proceeds are used to pay toward unsecured debts (credit cards, loans,
medical bills, etc.). In the overwhelming majority of cases, however, people do
not lose any property which means unsecured creditors get nothing. At the end of
the bankruptcy, roughly 3-4 months after filing, the debts are discharged and
the creditor can never collect on the debt.
Chapter 13 is a debt reorganization or consolidation bankruptcy. If a person has
regular monthly income, then his debts (mortgage arrears, car payments, credit
cards, medical bills, loans, student loans, etc.) are rolled into one low
monthly payment. Because the debtor is paying back his creditors through this
repayment plan, the debtor does not risk losing any assets as he might under
Chapter 7. Furthermore, while in the repayment plan, typically 3-5 years,
creditors are stopped from contacting the debtor without first going through the
debtor’s attorney and the court.
Millions of people declared bankruptcy last year alone to get the fresh start
they needed. Contrary to what many believe, your credit is not permanently
damaged and you will still be able to have credit. The new bankruptcy laws that
went into effect in 2005 changed bankruptcy very little.
Hire experienced San Antonio bankruptcy attorneys. At Malaise, we have 10
bankruptcy attorneys throughout Texas with over 90 years of combined bankruptcy
experience. We serve more cities in Texas than any other debtor bankruptcy firm.
We put our emphasis on helping our clients do what is in their best interest and
the clients above else come first. If you are looking to hire a bankruptcy
lawyer in San Antonio Texas with solid experience in Bankruptcy law, contact The
Malaise Law Firm today.
We serve bankruptcy clients in San Antonio, Houston, Corpus Christi, Harlingen,
Brownsville, McAllen, Dallas and Forth Worth.
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