Fort Worth Bankruptcy Attorney

Types of Bankruptcy

There are several major types of bankruptcy, each with its own process and eligibility requirements. Whether you are an individual or a business as well as your current financial circumstances will generally determine which type of bankruptcy you can apply for. We can help evaluate what types of bankruptcy you qualify for and help you understand the implications of filing.

Our Fort Worth bankruptcy attorney can assist you with:

Chapter 7 Bankruptcy

This type of bankruptcy is intended for consumers with limited assets and income. Filers must qualify to file for Chapter 7 by passing the state’s Means Test, which compares current income with the median average for your household size and measures your monthly disposable income.

Filers will go through a “liquidation” process where nonexempt assets are sold, or “liquidated,” to repay creditors. Once this process has been completed, filers can discharge unsecured debts. Though liquidation can sound scary, the reality is that many filers lose little to nothing.

Texas’s exemptions include:

• Equity in your home
• Vehicle
• Furniture
• Personal possessions
• Clothing
• And more

We can help you leverage these exemptions and minimize the impact of liquidation.

Chapter 11 Bankruptcy

Chapter 11 bankruptcy is generally intended for business organizations. Individual consumers can sometimes file if they do not qualify for other types of bankruptcy.

Filing for Chapter 11 involves proposing a plan to repay creditors through a reorganization of business assets and liabilities. Filers retain control of their business during a Chapter 11 bankruptcy but must create a plan that will survive creditor objections.

We can assist business organizations throughout the Chapter 11 bankruptcy process and can develop a reorganization plan that will satisfy creditors and the court. Our team can also pursue and facilitate streamlined Chapter 11 procedures for small businesses.

Chapter 12 Bankruptcy

This unique type of bankruptcy is reserved for family farmers and fishermen. Individuals in these occupations with “regular annual income” can be eligible to file if a majority of their debts are connected to their commercial operations.

Filers will propose a plan that combines their debts into a lump monthly installment that must be paid over a 3- to 5-year period. Once this repayment plan has been completed, farmers and fishermen can discharge unsecured debts.

Chapter 13 Bankruptcy

Individuals that do not qualify for Chapter 7 bankruptcy will likely instead qualify for Chapter 13 bankruptcy, especially if they have consistent income. Filers will need to propose a plan that reorganizes their obligations into a single monthly payment.

This payment amount will be rooted in your current monthly disposable income and must be paid over a period of 3 to 5 years, after which you will be permitted to discharge unsecured debts.

Additional Debt Services

In addition to our bankruptcy filing services, our firm also offers tailored debt counseling. We realize that bankruptcy is not the right choice for everyone and can help you explore all available relief solutions.

This can include working directly with creditors to negotiate refinancing compromises. Our firm also provides a full suite of financial planning services that can help you make strategic short- and long-term decisions and avoid accumulating debt.

Reach out to our firm by calling (972) 850-2033 or contacting us online today.