Bankruptcy
Financial distress can usher in a host of problems that plague you and can continue to compound until dealt with. Bankruptcy is not a viable solution for everyone, and recent changes in bankruptcy laws have created strict requirements that make it more difficult for debtors to qualify. However, when appropriate, filing bankruptcy can relieve you of the following:
- Phone call harassment
- Debt collection letters
- Repossession
- Garnished wages
- Foreclosure
- Lawsuits or threatened lawsuits
The federal government regulates bankruptcy through bankruptcy laws. It is offered as a solution to help individuals and businesses regain monetary stability through either a fresh start or additional time to schedule payments.
A bankruptcy attorney at Dietz Law Firm can review your debts, assets, and finances to help you determine the most effective remedy to resolve your financial issues. In addition to bankruptcy, our firm also handles harassment issues arising from creditors who refuse to abide by the bankruptcy laws and continue to aggressively pursue the person going through bankruptcy.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is referred to as “liquidation bankruptcy” because a debtor’s assets are liquidated or sold to pay off debt. Generally, Chapter 7 bankruptcy is used when insolvency consists mainly of unsecured debt or credit card debt. When there are substantial assets, another form of bankruptcy, such as Chapter 13, may be more appropriate. In a Chapter 7, the individual’s debts are discharged, meaning that he or she is free and clear of having to pay certain debts. The discharge is the “fresh start” which is often referred to when talking about bankruptcy.
A company may also file a Chapter 7 bankruptcy, in which case the business will sell all of its assets to pay off creditors and go out of business.
Chapter 13 Bankruptcy
In a Chapter 13 bankruptcy, the individual will not be liquidating assets to pay off debts. Liquidation may not be feasible if you own a home or other valuable assets. In this type of bankruptcy, finances are reorganized and a payment schedule is devised which incorporates the use of future income to pay off debt. The debt payment plan is structured to cover a time period of either three or five years. Chapter 13 bankruptcies are conducted under court supervision, and the debtor makes monthly payments to a Chapter 13 bankruptcy trustee who ensures that creditors are paid.
Chapter 11 Bankruptcy
A Chapter 11 bankruptcy functions for businesses in a similar way that a Chapter 13 does for individuals. It is a “reorganizational” type of bankruptcy where debts are paid off by the business under the supervision of the court while the company continues to operate.
If you are experiencing problems with creditors, or are having trouble paying bills with no relief in sight, please call our law firm at 1-888-764-1888. Our law firm is a Debt Relief Agency and will arrange a consultation with a bankruptcy attorney to see if filing bankruptcy is a workable solution for your financial problems.
5605 N MacArthur Blvd.
11th Floor
Irving, Texas 75038
Phone: 1.888.764.1888
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