Bankruptcy

Bankruptcy Basics and FAQ’s

You may have heard that Congress passed new tougher Bankruptcy laws. There’s a lot of inaccurate information about the new Bankruptcy law. Many of our clients have told us that Bill collectors have told them that they can no longer file for Bankruptcy or that it doesn’t exist anymore or that if they do file, that they will lose all of their belongings. THIS IS COMPLETELY NOT TRUE. These Bill collectors are just trying to intimidate you. The biggest change with the new Bankruptcy law is that there are stricter requirements for wealthier persons to file for Bankruptcy. However, the vast majority of San Antonio will not be affected by the new Bankruptcy law and can still file a Chapter 13 Debt Consolidation PLAN.

Bankruptcy is a legal proceeding afforded to individuals and small businesses who are unable to pay their Bills as they come due. It is a legal process designed to help people and small businesses eliminate or substantially reduce their Debt. Bankruptcy is also known as Debt Forgiveness. Bankruptcy is made available under the protection of federal law so that you can Get a Financial Fresh Start.™

After the individual or small business files a Bankruptcy, legal protections are ordered by the court that protects the individual or small business so they may get their financial affairs back on track.

Title 11 of the United States Bankruptcy Code offers various forms of chapters of relief. The chapters most commonly used by consumers and small business are Chapter 7 and Chapter 13.

Coming to terms with your financial obligations should be commended and not viewed as failure, weakness or disgrace. In today’s economy, anything unexpected has the ability to create undue financial hardship.

Bankruptcy may help you rise above your financial problems when, but not limited to:

  1. You lost your job or had a significant reduction in income.
  2. Your credit card Debt is difficult or impossible to continue to pay.
  3. You owe taxes to the IRS.
  4. You have unexpected medical Bills.
  5. You are suffering from an illness.
  6. A divorce caused an income deficit.
  7. You have been sued by creditors.
  8. You have been threatened with lawsuits.
  9. You have fallen behind with your car payments.
  10. You have fallen behind with your house mortgage payments.

As soon as you file your PLAN, you are granted an automatic stay immediately, that stops creditors from harassing you and making attempts to repossess, foreclose or collect on your Debt.

Remember the following guidelines in order to complete a successful C13-PLAN™ and/or a Chapter 7 PLAN: Always tell your San Antonio Bankruptcy Attorney the truth concerning anything and everything pertaining to your case; listing all your creditors; not hiding any assets and/or income; go through all the required counseling sessions and finally making all agreed payments on time. Together as a team, bankruptcy may help you achieve the Debt Relief you need.

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