Bankruptcy

The major intent of the bankruptcy reform was to require people, who can afford to
make some payments towards their debt, to make these payments, while still
affording them the right to have the rest of their debt erased. These people, who at
one time might have filed Chapter 7, now MUST file Chapter 13. That doesn't mean
that YOU might not be able to file Chapter 7 under the new reforms! One of the
main purposes of Bankruptcy Law STILL is to give a person, who is hopelessly
burdened with debt, a fresh start. Here are a couple of web links that contain
diagrams to give you an idea of which type of bankruptcy (Chapter 7 or Chapter
13) you might qualify for under the new reforms:

http://www.darnalltaxandaccounting.com/topics/bankruptcy.htm

http://www.bankruptcyaction.com/bankreform.htm

Chapter 7 bankruptcy, sometimes call a straight bankruptcy is a liquidation
proceeding. The debtor turns over all non-exempt property to the bankruptcy
trustee who then converts it to cash for distribution to the creditors. The debtor
receives a discharge of all dischargeable debts.

Chapter 13 bankruptcy is also known as a reorganization bankruptcy. Chapter13
bankruptcy is filed by individuals who want to pay off their debts over a period of
time. This type of bankruptcy appeals to individuals who have non-exempt property
that they want to keep. It is also only an option for individuals who have predictable
income and whose income is sufficient to pay their reasonable expenses with some
amount left over to pay off their debts.

Both types of bankruptcy offer you several different measures to protect you from
collection attempts, utility shutoffs, professional discrimination, and lawsuits.
However, these protections are conditional upon your ability to meet obligations
and guidelines set down by the bankruptcy courts. Personal bankruptcy can be a
stressful experience, but if you have made the decision to file either chapter 7 or
chapter 13, you should see these procedures as a responsible step in solving
financial problems and making a clean start for yourself. Our firm has a wealth of
experience in this field and are here to help you during this trying time

Bankruptcy Terms
Assets - Assets are generally anything of value. For example: property, real estate,
cash, notes, stocks, bonds, accounts receivables, securities, and any other item of
value that could be used to pay off debt.

Creditor - A person or entity to whom money is due, or one who has extended credit
and has a vested interest in getting paid.

Discharge - To release from debt after fulfilling ones obligations

Exemption - Assets that cannot be touched by creditors during bankruptcy
proceedings.
Involuntary Bankruptcy - This is when creditor take legal action against a debtor
and files petition in court.

Secured Debt - debt that is backed by collateral. For example: mortgage or car loan.

Substantial Abuse- dismissal of a chapter 7 filing because income of petitioner is
sufficient to service debt.

Trustee - Person appointed to oversee the completion of a bankruptcy filing.

Unsecured Debt - debt that is not backed by collateral. For example: credit cards,
medical bills, utility bills.

Voluntary Bankruptcy - This is when the debtor takes the initiative to file bankruptcy
on their own rather than being forced by creditors.

In order to get the bankruptcy process started, but after you have consulted with an
attorney at our firm, you will need to click on the link below titled ‘Bankruptcy
Questionnaire Form’, print it, fill it out , and then get the completed form and all
required documentation into our hands. We will then file a petition with the clerk's
office of the federal bankruptcy court. This completed form is the manner used to
provide the court with a list of all your creditors, the amounts you owe each, a list of
all your sources of income, a listing of all property you own and an itemization of its
value, and a detailed expense budget covering your everyday needs. It is important
to realize that this is an official document for a federal bankruptcy court, so not only
do these figures and listings need to be complete and as accurate as possible, but
they also need to be "backed up" with all the relevant documentation, such as
deeds, mortgage papers, tax returns, any notices of garnishment or similar
penalties, credit card, medical, and utility bills, as well as loan and bank statements.
If you have any problems filling out the forms – or have any questions, don’t
hesitate to contact our office.

Bankruptcy Questionnaire Form

Disclosures
This law firm is a “Debt Relief Agency” according to the terms described in the
Federal Bankruptcy Code. The disclosures we are required by law to make you
aware of can be found here (http://www.soardlaw.com/files/527a_DISCLOSURE.doc)

Houston Texas
Katy Texas