McDaniel Legal

11111 Katy Freeway, Suite 910
Houston, TX 77079

 

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bankruptcy practice

Bankruptcy is a Federal Law that was created to help people when they experience debt problems. Although there are different forms of Bankruptcy, the two most common for individuals or small businesses are Chapter 7 and Chapter 13. Both Chapter 7 and Chapter 13 are forms of Bankruptcy. However, each one addresses a different situation. 

Chapter 7 is the form of Bankruptcy where we file a Petition in Federal Court and have a Federal Bankruptcy Judge issue an Order eliminating your dischargeable unsecured debts. Unsecured debts are those debts that are not secured by collateral, such as most credit cards and medical bills. In most situations, your unsecured debts will be eliminated in a Chapter 7 Bankruptcy. 

Chapter 13 is the form of Bankruptcy where we are able to restructure your debts by consolidating all of your debts into a repayment plan in Bankruptcy Court. Your monthly payment is based upon what you can afford to pay and is monitored by an appointed Trustee. All of your debts are placed in the Chapter 13 and are paid according to what type of legal status they have. Some debts get paid in full, while others do not and some debts are paid with interest, while others are not. A Chapter 13 Bankruptcy can last from three to five years. At the end of the Chapter 13, your debts will be discharged or eliminated. 

Two of the most common reasons for filing a Chapter 13 Bankruptcy are someone falling behind on vehicle and house payments and are facing repossession or foreclosure. In most situations, your entire vehicle and back/delinquent house payments may be paid through your Chapter 13 Bankruptcy.

Procedure... When you come into our office and complete the necessary paperwork, we prepare and file your Chapter 7 or Chapter 13 Petition in Federal Court. Upon filing, the Court issues a Federal Court Order called an Automatic Stay, which protects you and your property against collection efforts. The Automatic Stay prohibits creditors from making any attempt to collect money from you or take property from you. Not only will it stop harassing telephone calls from debt collectors, it will stop lawsuits and stop the repossession of vehicles or the foreclosure of a house.

This a general description of Chapter 7 and Chapter 13 Bankruptcy. For more specific questions about Bankruptcy or what happens in Court, please contact our office . We will be more than happy to speak with you by telephone or schedule a complimentary office consultation. Please take a moment to fill out and submit our INTAKE QUESTIONNAIRE on the "free office consultation" page.

bankruptcy faq | free office consultation