What is Bankruptcy?

Bankruptcy is a process in which consumers and businesses can eliminate or repay some or all of their debts under the protection of the federal bankruptcy code. Bankruptcies can generally be divided into two types — liquidation and reorganization. Chapter 7 is known as liquidation while Chapter 13 is known as reorganization.

Chapter 13

Chapter 13 is a way for you to keep your property on your terms. This is accomplished by restructuring your agreements with your creditors. A Chapter 13 Bankruptcy creates a payment plan that fits within your budget. It allows you to take control of your financial situation and determine how your creditors are repaid. No matter how you found yourself in your financial crisis, whether it is unexpected events or bad choices, a Chapter 13 gives you the ability to turn it all around.

If you are behind on your home, missed a car payment, owe the IRS, or have a garnishment, then a Chapter 13 may be right for you.

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Chapter 7

Chapter 7 is a way for you to wipe out all of your debt and get a fresh start.  If you are current on your home and vehicles and simply cannot afford your credit cards, medical bills or other debt, then a Chapter 7 may be right for you. On the other hand, if you are at a place where you cannot afford any of your bills and simply want to erase all your debt and start over, you may want to consider a Chapter 7.

A Chapter 7 Bankruptcy is very fast and typically takes 4 to 6 months to complete.  Once it’s over, your debts are discharged, which is another way of saying that your debts are legally forgiven.

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How is Bankruptcy going to affect my Credit?

Bankruptcy does not send you to financial Siberia – that is a myth. First, the bankruptcy code defines a debtor as a business or person, so there is no difference between a fortune 500 company filing bankruptcy and you. Therefore, if you do not judge all the car companies in America for filing, every airline in America for filing, Donald Trump, or NFL players, then you shouldn’t judge yourself – you are both using a financial tool to turn your financial life around.

We understand that rebuilding your credit is very important and that is why we spend a lot of time in our first several meetings to discuss strategies to help you get your credit score back to the 700’s in the
fastest way possible.


Can I still Buy a Home or
a Car if I file Bankruptcy?

Absolutely.  As stated above, filing bankruptcy with bankruptcy attorneys in Dallas, TX does not create financial ruin.  Remember, the purpose of bankruptcy is to give people a fresh start.    It would not make sense to give people a fresh start if you were not able to purchase a home or car again.



How Private is the Bankruptcy Process?

When you file bankruptcy, your information is reported to the PACER public records system. This information is public, however, you can only access the PACER database with a login and password. Typically, only people in the legal field have access to PACER.