The Vida Law Firm, PLLC

Hi Ms. Wallace--thank you for the question. A chapter 13 is a reorganization case, so there is certainly a payment plan on every case. This is a case that is custom tailored to your specific fact situation, so every client's payment plan is based on her own types of debts. Call or email to schedule a free consultation with an attorney to discuss your financial issues. We look forward to meeting you!

Yes. In a sole proprietorship, you essentially are your business, so you are personally responsible for any debts the business incurs. However, whether your case would be filed as a “consumer bankruptcy” or a “business bankruptcy” depends on the specific nature of your debts. It is often possible to keep personal loans (such as a mortgage) while reorganizing or discharging your business’s loans; it may even be possible for you to continue owning and operating your business. During your initial consultation, we will carefully examine your financial situation, discuss the available options, and create a plan that will work best for you.

When you file a bankruptcy, a notation is made on your credit report. The report states that your debts were “discharged in bankruptcy”. In a sense, this is part of your fresh start in that “slow pay/no pay” entries will no longer be re-entered on your report. The bankruptcy notation remains on your credit report for 10 years if you fill a chapter 7 or 11 and 7 years if your file a chapter 13. A lot of people think that this means you cannot get credit for 7 or 10 years. That is simply not the case. The notation is on your report, but it is not a prohibition against issuing you credit. If you continue to make your house and car payments, you will continue to have good credit with those creditors.

The Bankruptcy Code specifically prohibits employers from discriminating against employees who file bankruptcy. This prohibition applies to both private and governmental employers. An employer is notified of your bankruptcy only if you owe money to your employer.

Bankruptcy is a field of law devoted to assisting people and businesses deal with their creditors. Immediately upon filing a bankruptcy case, creditors are stopped or enjoined from taking any further steps toward collecting payments. This injunction, or the automatic stay is one of the primary benefits of filing a bankruptcy. The bankruptcy judge may impose sanctions or penalties against creditors who attempt collection after the bankruptcy case has been filed. Most creditors are aware of this and immediately stop collection when they are notified that you have filed a bankruptcy. Generally, there are three types of bankruptcy that may be available to you, and the laws pertaining to the types of bankruptcy are contained in various chapters of the United States Bankruptcy Code. The most common types of bankruptcy are Chapter 7, Chapter 11, and Chapter 13. It is important to know what bankruptcy is NOT. It is not a procedure for avoiding debts you simply don’t want to pay, but can othe

Chapter 7 bankruptcies are particularly effective for those who have amassed large amounts of unsecured debt. A debt is unsecured when it is not backed by collateral, i.e. some kind of property that can be repossessed if payments on the loan are not paid. Unsecured debts are typically discharged in a Chapter 7 bankruptcy, and because they are not backed by collateral, you do not have to sell anything during the bankruptcy process. Examples of unsecured debts include credit cards, medical bills, and loans requiring only a signature as collateral.

The fact that you have declared bankruptcy will remain on your credit report for ten years. While this will not necessarily prevent you from being able to obtain new credit, it is something potential creditors will consider. Generally, it is difficult to establish new credit within two years of filing, after which point it often becomes easier, especially if you maintain positive relationships with the creditors of any non-discharged debts.

It depends. Generally, you can keep all exempt property, and you might have to sell nonexempt property. Exempt property typically includes your home, the items inside your home, your car, and your retirement accounts. In some circumstances, you may also be able to keep some monetary assets. Determining which property you can keep can be a complicated matter that is heavily dependent on the specifics of your situation; an experienced attorney can examine your assets and advise you as to what property you will likely be able to keep.

While individuals, partnerships, corporations, and other business entities can all be eligible to declare Chapter 7 bankruptcy, determining qualification for a Chapter 7 bankruptcy requires a complicated analysis. To be eligible, you must qualify under the "means test," an analysis of your income compared to that of other Texas residents. Regardless of your income, if you are facing mounting bills and financial difficulties, it is important to consult with an experienced bankruptcy lawyer who can examine your situation and discuss all of your options with you.