Houston Bankruptcy Attorneys

Frequently Asked Questions (FAQ): Texas Bankruptcy

What is bankruptcy? Bankruptcy is a court process based of federal statutes which allow both individuals and businesses the opportunity to discharge or consolidate their debt under the protection of bankruptcy court.

Are there different kinds of bankruptcy? Yes. The two most common forms of bankruptcy are Chapter 7 and Chapter 13. Chapter 7 is typically referred to as “liquidation” wherein eligible assets are liquidated in order to pay off creditors, and then any remaining debt is discharged. Chapter 13 is a “reorganization” wherein debts are consolidated into one low monthly payment that the debtor pays over a period of 3 to 5 years.

How do I know which form of bankruptcy is right for me? A Houston bankruptcy attorney can meet with you to review your financial situation, answer your questions and discuss your particular goals in order to help determine which form of bankruptcy you may qualify for and which is best for your future.

Will I lose my home? Under Texas law, your home may be exempt regardless of how much equity you have, depending upon the size. Your homestead cannot be more than one acre in town or more than one hundred acres out of town. However, there are qualifications and important factors which must be addressed in order to help ensure that your home is protected during Texas bankruptcy proceedings.

Can filing for bankruptcy stop creditor harassment? Yes. Once you file for bankruptcy, creditors can no longer call or contact you in any way in an attempt to collect the debt they are owed. This includes filing a lawsuit or continuing an ongoing lawsuit against you.

Will all of my debts be discharged? There are specific debts which cannot be dischargeable under Chapter 7 or Chapter 13 bankruptcy proceedings, and these include: child support, alimony, student loans, traffic tickets or court-ordered fines. A lawyer can help you understand what debt is dischargeable and can help ensure that as much debt as possible is discharged in your bankruptcy proceedings.

Is bankruptcy the only alternative if I have debt?
No, bankruptcy is not the only alternative.  In fact, in some situations, it does not make sense to file bankruptcy.  Sometimes settling with your creditors or fighting a lawsuit if you are sued over a debt makes more sense, and yet sometimes bankruptcy is the best legal alternative.  We take pride at our firm for looking at your entire financial situation and not trying to use a one size fits all approach to solving your financial problems.  Every client's debt and financial problems are different and that is why we offer a number of solutions to your debt problems.  Call today and set up an appointment to find out what your legal options are!

I have been sued over a debt.  What should I do?
When you have been sued over a debt, time is very important.  Call or contact a Houston debt suit defense attorney today.  We will look at your entire financial situation to determine what is the best course of action for you.  Sometimes fighting the lawsuit makes the most sense, sometimes settling the debt or even filing bankruptcy is your best alternative.  Set up an appointment today and let us analyze your financial health and hear what otions are available to you.

Contact a Houston bankruptcy lawyer at Mills & Henshaw to discuss your questions and concerns regarding bankruptcy in Texas.