The Woodlands Bankruptcy Attorney
The Constitution declares bankruptcy as a right of every American. One of the many advantages of a bankruptcy is that it helps prevent the wastage of commercial assets following the failure of a business. The Bankruptcy Code or Title 11 of the United States Code governs the procedures that businesses and individuals must follow when filing for bankruptcy. An experienced Woodlands TX bankruptcy lawyer can help guide you when you are filing for bankruptcy as a business or as an individual.
Chapter 7 vs Chapter 13
Consumer bankruptcy is the type of bankruptcy filed to reduce accumulated debt on personal expenses. You can file either a Chapter 7 bankruptcy or a Chapter 13 bankruptcy if you are not able to pay back your personal debt. A Chapter 7 bankruptcy is also known as a “liquidation” because in a Chapter 7 bankruptcy a trustee may sell all or a portion of your assets to pay back all or some of your creditors. But property such as your house or your car cannot be sold in a Chapter 7 bankruptcy. However, you need to pass the means test before you file for a Chapter 7 bankruptcy.
Individuals with a regular monthly income that have not passed the means test can file for a Chapter 13 bankruptcy. A Chapter 13 bankruptcy is also called reorganization bankruptcy because people who file a Chapter 13 have to create a plan to pay their debts. Unlike Chapter 7 bankruptcy, debts are not eliminated in a Chapter 13 bankruptcy. The amount you pay to the creditors every month is determined by how much you earn and how much you owe. These Chapter 13 payment plans often last from 3 to 5 years. Your Woodlands bankruptcy lawyer will review your case to help you determine whether you need to file a Chapter 7 or a Chapter 13 bankruptcy.
Businesses that are experiencing serious debt problems can file for bankruptcy to save the business. The two types of a business bankruptcy are Chapter 7 business bankruptcy and Chapter 11 business bankruptcy. A Chapter 11 bankruptcy allows a business to continue operating while the debts are resolved. After a business files for Chapter 11 bankruptcy its business affairs, debts, and assets are reorganized. Individuals with high amount of debt, who are not eligible for a Chapter 7 or a Chapter 13 bankruptcy, can file for a Chapter 11 bankruptcy. However, when a business files for a Chapter 7 business bankruptcy it cannot continue operating because all its assets will be liquidated. An experienced Woodlands Texas bankruptcy lawyer can help you determine whether your business should file a Chapter 11 or Chapter 7 bankruptcy.
Other Ways A Woodlands Bankruptcy Lawyer Can Help
Bankruptcy lawyers in Woodlands Texas can help senior citizens that overwhelmed with debt restore their financial security. Elder bankruptcy has been rising in Texas because of eroding pensions and other trends. A bankruptcy lawyer can also help small businesses with reorganization, selling of assets and more. Your Woodlands bankruptcy lawyer can help make the bankruptcy process easier for you and your family.