Plano Bankruptcy Lawyers

Experienced Texas bankruptcy counsel

If you find yourself spiraling into debt far past where it is feasible to recover, our nation's laws do provide a chance for you to start over. Lenders and collection agencies are often aggressive in their practices, which can make it incredibly difficult to keep up with payments, let alone get ahead of your debt. Bankruptcy is a legal procedure by which an individual or corporation, under federal bankruptcy court, may file to either eliminate or reorganize their debt in order to gain more solid financial footing.

While offering new hope, bankruptcy and debt reorganization are still complicated legal processes. There are different types of bankruptcy, and each applies to your finances in a slightly different manner. Because of these choices, the guidance of an experienced bankruptcy attorney can have a significant impact on how your finances play out. The Denton law firm of Hayes, Berry, White & Vanzant, L.L.P., has helped literally hundreds of north central Texas clients assess their options and effectively file for bankruptcy in the manner that is most beneficial to their specific needs. These clients include not only families and individuals, but businesses and business owners as well.

When clients come to our firm to meet with an attorney, many ask similar questions about bankruptcy laws and how they apply to them. To better serve you, we are here outlining some of the most common questions and introductory answers. However, each financial situation is different, so these basic explanations are not intended to be definitive legal advice for your circumstances. Please contact us to schedule a personal consultation so we can fully assess your needs.

How can I eliminate my debt?

The greatest number of bankruptcy claims are filed under the federal Chapter 7 bankruptcy, also know as liquidation. Liquidation essentially means that your property and assets are sold or distributed in order to pay back your creditors. This type of bankruptcy is available to both businesses and individuals, but is most commonly filed by individuals.

For individuals filing under Chapter 7, most consumer debt (e.g. credit card debt, etc.) is removed, but some other forms of debt, such as student loans, child support and taxes, do remain your responsibility. Generally, this type of bankruptcy remains on your credit report for approximately ten years, which does impact your credit score. But often, this is similar or even better than the credit score an individual had while leading up to the bankruptcy.

What about debt reorganization?

Chapter 13 bankruptcy is a reorganization option for both businesses and individuals. Rather than pay numerous high interest loans, Chapter 13 allows the filing party to lump all debts into a single reorganization plan. Through this plan, you make single monthly payments to a trustee who is appointed by the bankruptcy court. This trustee then divides the payments among your debtors. Chapter 13 bankruptcy can make it possible for an individual or family to prevent the foreclosure of their home. However, doing so requires that you adhere to a strict financial budget, and the court keeps a steady eye on your financial behavior and processes to ensure that you are complying.

How can smaller businesses reorganize?

Like the previously mentioned forms of bankruptcy, Chapter 11 is open to both individuals and businesses, but it is mostly utilized by businesses. Chapter 11 is similar to Chapter 13, except that it generally applies to smaller businesses, or rather, businesses who have a smaller amount of debt than those who qualify for Chapter 13. Chapter 11 bankruptcy generally allows a corporate entity to reorganize debt and still remain in business.

Let our experience help you

We are confident in our abilities to represent our clients effectively. Contact Hayes, Berry, White & Vanzant to schedule a consultation with one of our experienced bankruptcy attorneys who can help you file for bankruptcy and pursue a fresh start.

The Denton, Texas law firm of Hayes, Berry, White & Vanzant, L.L.P., represents residents and owners of privately held businesses throughout north central Texas, including communities such as Denton, Flower Mound, Lewisville, The Colony, Frisco, Gainesville, McKinney, Sherman, Decatur, Plano, Carrolton, Highland Village, Sanger, Trophy Club, Argyle, Krum, Ponder, Aubrey, Corinth, Shady Shores, Carter, Mingo, Green Valley, Bolivar, Plainview, Justin, Marshall Creek, Bartonville, Lincoln Park, Krugerville, and Minchin, Texas.

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