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Experienced Representation In Consumer Bankruptcy Matters
Throughout Texas and the United States, millions of people find themselves in debt. Struggling to stay current on payments, many people fall behind and seek assistance. Filing for bankruptcy is one way to get back on your feet financially. Though bankruptcy may still carry a negative stigma in some cases, it is really a positive way to regain control of your life and restart your finances.
At Mills Shirley LLP, we understand the stress that financial challenges, such as medical expenses or the loss of a job, can cause. Having represented clients in the Galveston and Houston area in numerous types of legal matters since 1846, we have the knowledge, insight and experience you need when considering bankruptcy. We take the time to explain your options – Chapter 7, Chapter 13, the Means Test and all other bankruptcy-related matters – in order to help you move forward.
Chapter 7 bankruptcy is also sometimes referred to as the “fresh start” bankruptcy. This is because after filing for Chapter 7, your debts and assets are evaluated and calculated. Once this has occurred, if you qualify for Chapter 7, most of your unsecured debts will be discharged. This means you are no longer liable for paying them. You typically would be able to keep many of your assets, but some would need to be handed over to the bankruptcy trustee who is overseeing the case as repayment of some of your debts.
If Chapter 7 is a liquidation bankruptcy, Chapter 13 is considered a repayment or reorganization bankruptcy. In a Chapter 13 filing, your debts are reorganized in order to allow you to repay either a portion or all of them. This is a way for individuals who have too many assets for a Chapter 7 filing to catch up on back payments while retaining assets and the original agreements with the parties that hold the debts. Typically, a Chapter 13 repayment plan lasts from three to five years, after which all debts should be up-to-date if payments occurred on the bankruptcy schedule.