Bankruptcy 101

For individuals and couples thinking about bankruptcy, the first step toward making an informed decision is to gain a basic understanding of the procedures, limitations and benefits involved. The more you know about what you can expect during and after your bankruptcy, the more confident you can feel in your decision to file under Chapter 7 or Chapter 13, or to pursue another alternative.

1. The Bankruptcy Process

First and foremost, bankruptcy is a process. Despite what some of the “self-help” websites want you to believe, discharging your debts in bankruptcy isn’t something that happens overnight. You don’t simply file a few forms and then wait for a letter from the court to come in the mail. You need to plan ahead, and you need to be actively involved throughout the entire process in order to maximize the benefits of your filing.

2. Chapter 7 vs. Chapter 13

For most individuals and couples, the two primary options when it comes to filing for bankruptcy are filing under Chapter 7 and Chapter 13. A Chapter 7 bankruptcy is known as a “liquidation” bankruptcy, or a “fresh start”. In a Chapter 13 bankruptcy (also known as a “wage earner’s plan”), you restructure your debts over a three or five-year period so that you can satisfy your outstanding obligations. At the end of the process, certain of your remaining debts will be eligible for discharge.

3. Eligibility Criteria

Not everyone is eligible to file for bankruptcy. Both Chapter 7 and Chapter 13 have eligibility criteria and, since Chapter 7 provides for discharge without a repayment plan, the criteria to file under Chapter 7 are stricter than those for filing under Chapter 13. Learn more:

4. Dischargeable vs. Non-dischargeable Debts

In bankruptcy, some debts are eligible to be discharged and some aren’t. When a debt is discharged, you are no longer liable to make payments.

Debts that are eligible for discharge include:

Credit card bills
Medical bills
Utility bills
Dishonored checks
Past-due rent
Civil court judgments
Amounts turned over to collection agencies

Non-dischargeable debts include alimony, child support, student loans and certain taxes.

Discuss Your Options With Bankruptcy Attorney Rebecca Moughon

The Law Office of Rebecca Moughon is a bankruptcy law firm in The Woodlands, TX that represents individuals and couples in Chapter 7 and Chapter 13 bankruptcies. If you would like personalized legal advice about filing for bankruptcy, we encourage you to call (832) 653-9371 or contact us online for a free consultation.

Get Started With A Free, No-obligation Consultation

If you have questions about bankruptcy, your first step is to schedule a free initial consultation. Whether you need help understanding the bankruptcy process or are ready to file and need to decide between Chapter 7 and Chapter 13, Attorney Rebecca will make sure you understand the steps that follow. Located in The Woodlands, we serve clients in Kingwood, Spring, Tomball, Conroe, North Houston and throughout the greater Houston metropolitan area. Regardless of your current circumstances, you deserve the guidance necessary to make informed decisions, and Attorney Rebecca will make sure you clearly understand all of the options you have available.

For more information about filing for bankruptcy, please contact us to arrange a free, no-obligation consultation with Attorney Rebecca Moughon.

To schedule an appointment at your convenience, please call (832) 653-9371 or request an appointment online today.