Should I file for Bankruptcy?

What about debt defense or debt consolidation?

What is a discharge?

What's the difference between a Chapter 7 and a Chapter 13?

Future Questions:

• Do I lose everything in Bankruptcy?
• Does Bankruptcy stop foreclosure?
• Will bankruptcy ruin my credit?
• What is the Automatic Stay?
• What can I keep?
• Is it true my creditors can put my business into bankruptcy against my will?
• What if someone who owes me money files for bankruptcy? (What are a creditor’s rights when a debtor files bankruptcy?
• Will bankruptcy get rid of all my debt?
• What is the Means Test?
• What is a reaffirmation agreement?

Should I file for Bankruptcy?

Filing for bankruptcy protection is a serious decision and should be done only after a careful and deliberate analysis of your particular legal situation by a qualified legal professional.  Bankruptcy protection does not come in a “one size fits all” package and your individual circumstances will dictate whether it is more beneficial to seek Chapter 7, Chapter 13 or Chapter 11 protection.  Choosing the wrong bankruptcy chapter will likely not give you the relief that you need and can make matters worse.  For example, if you are attempting to protect your home from foreclosure or car from repossession, then a Chapter 7 bankruptcy will generally not help you, whereas a Chapter 13 will allow you to accomplish these goals.

If you're thinking about bankruptcy, you should consult an attorney with the appropriate skill and knowledge in the field. Because of the increased number of bankruptcy filings in the past two years, there are many people and companies attempting to provide bankruptcy services who are simply not qualified to do so. Inexperienced counsel can ruin the bankruptcy procedure for a debtor and even make a debtors’ circumstances much worse than if no bankruptcy had been filed at all. The attorneys at Adair & Myers, PLLC, have years of experience in helping both creditors and individuals needing bankruptcy protection navigate the perils of bankruptcy protection. Call today to arrange a free consultation.

What about debt defense or debt consolidation?

An increasing number of debt consolidation, debt defense and credit repair services have arisen in recent years.  Unfortunately, the majority of these services do not deliver what they promise and you end being in just as bad of a situation as when you started their payment program.  We have had innumerable clients who participated in a consolidation program with the good intent of trying to pay back their creditors.  Without exception each of those clients paid hundreds, if not thousands, of dollars and received nothing for it.  Further, even though many of these consolidation programs tout themselves as being “non-profit” they end up taking a large percentage of what you  pay as the cost of providing their services.

We are unaware of any effective debt consolidation programs that we would recommend to a client.  If you are not familiar with the laws of credit and debt, it can be very easy to be taken advantage of by promises of easy and fast solutions. The attorneys at Adair & Myers, PLLC, already have the  experience you need.  Call today for a free consultation.

What is a “Discharge”?

A discharge in bankruptcy is the order entered by a Court that relieves you of your legal liability on the debts that you owed at the time you filed for bankruptcy protection. It is, for most debtors, the entire purpose for filing bankruptcy.

What's the difference between a Chapter 7 and a Chapter 13?

Simply put, Chapter 7 is a “total liquidation” of your debts whereby you  receive your discharge within a matter of months.  The potential downside of a Chapter 7 proceeding is that if you possess non-exempt property, that such property might have to be turned over to a bankruptcy trustee.  However, all the property of the vast majority of persons filing for bankruptcy filing protection fall into the category of “exempt” property and is retained by them.  While there are specific laws governing what kind of property is exempt, generally your home, car, household goods, retirement savings, insurance policies are protected from your creditors.  The exception to this is where the creditor lent you the money to purchase that property in the first place, such as your mortgage company or auto lender.  The attorneys at Adair & Myers, P.L.L.C., are highly experienced at analyzing what property, if any, might be at risk by a bankruptcy filing and help you protect it to the maximum extent allowed by law.

While Chapter 7 has its advantages, it is restricted to those who make less than a certain amount of money.  In order to be qualified to file for Chapter 7 relief you must pass the MEANS test, which compares what you earn to what the average family of similar size in Texas earns.  The attorneys at Adair & Myers, P.L.L.C., work with you decipher this complex determination.

Chapter 13 , is a payment plan over time where a set sum of money is paid every month for up to five years to a bankruptcy trustee and ultimately distributed to your creditors.  If you   stick to the plan and makes your payments, then at the end of the payment period your debt is discharged, no matter how much of the debt hasn’t been paid off.  The major advantage of a Chapter 13 is that it allows you time to pay back debts you are behind on, such as your house or car payment.  A Chapter 13 is what you use to prevent a foreclosure or repossession.  Chapter 13 can also be used to deal with tax debt or child support issues, if the Debtor has enough income to allow for full payment of these debts during the payment plan.  In short, Chapter 13 may be what you need to give you the breathing space to get caught up.

Which option is best for a potential debtor depends on numerous factors, including the debtor's financial circumstances, what assets the debtor has, what kind of debt the debtor has, and, most importantly, what the debtor hopes to achieve by filing bankruptcy. Call Adair & Myers, PLLC today to arrange to meet with one of our experienced bankruptcy attorneys to discuss how to get back on track.