In addition to the other legal services we provide, we are a debt relief agency and we
assist people in filing for bankruptcy. In fact, one of the most important services
provided by this office is representation in Bankruptcy Court. This page is dedicated to
answering some of the most common questions regarding Bankruptcy:
1. What kinds of bankruptcies are there?
Generally speaking, for consumers there are two types. Chapter 7, which is often
referred to as liquidation, and Chapter 13, or reorganization, where a portion of your
debts are repaid.
2. Should I file Chapter 7 or 13?
At our firm, we will be able to help you with that question. Everyone's individual
circumstances vary, but generally speaking a person with money left over at the end of
the month after taking into account their monthly budget including all "necessary"
bills, would probably be a good Chapter 13 candidate. If you do not have any excess
income after paying your monthly minimum expense, then a Chapter 7 might be your
only option.
3. Do I get to keep any of my property?
You get to keep your exempt property. In Texas there are several advantageous
exemptions available to debtors. Our attorneys will carefully review your situation to
ensure that all available exemptions are used to your
best benefit.
4. What about loans that I put up collateral for, like my house and car?
"Collateral" is an example of what is referred to as Secured Debt. With Secured Debt,
you will have to Agree to continue paying on the loan, or else the lender will be able to
take the property back from you. It is common for a person in bankruptcy to keep
paying on their car and house and then keep these items (provided they can afford it).
5. What about credit cards?
This is a good example of what is known as Unsecured Debt. In Bankruptcy unsecured
debt is either discharged or repaid out of the nonexempt proceeds of the estate in
chapter 7, or partially repaid under the Chapter 13 payment plan. Most credit cards
are unsecured, meaning there is no property put up as collateral for the
debt. However, some credit cards, such as Sears and Montgomery Ward are often
secured (see no. 4). This means you may have to give the property back that you
purchased with the card if you want to discharge the debt.
6. How long will I be in Bankruptcy?
It will take approximately three months from the time the petition is filed until the
date of final discharge for a Chapter 7. Under the Chapter 13 framework, you are "in
bankruptcy" for the duration of the repayment plan, usually 36-60 months.
7. What can I expect?
Our attorneys will prepare a detailed petition listing all of your property, debts and
other financial information. After you approve the petition, it will be filed
electronically with the Court. A short period later there will be a meeting with the
bankruptcy trustee that you must attend. This is usually the only appearance required
and one of our attorneys will be right there with you. Unless there are problems or one
of your creditors objects, the discharge will be granted a few months later.
8. How long does a Bankruptcy stay on my record?
Generally, credit agencies can report bankruptcies for a period of ten years.
9. If I am married, does my spouse have to file bankruptcy too?
Technically no, a single or joint petition may be filed. However, Texas is a community
property state, so more often than not, the non-filing spouse may still be held liable for
some debts. You can also run into problems when assets are transferred from one
spouse to another. Our offices can provide valuable assistance to you regarding this
particular topic.
10. Can I go run up my credit cards and then go bankrupt?
No, the Trustee has the power to object to our being able to discharge debts where you
fraudulently bought items with the idea of going bankrupt. If it is bad enough, it can
be considered a crime. In fact, once you meet with our attorneys, you will be
instructed NOT to use credit 90 days prior to filing just to be on the safe side. This is
just an example of one of the ways we can help guide you through what otherwise could
be a very stressful experience.
11. How much does it cost?
The price of your bankruptcy is a combination of filing fees, expenses, and attorney
fees and will vary depending upon the complexity of your individual case. It is not
possible to give you an exact price over the Internet because you must actually talk
with one of our attorneys before we can fully assess your situation. However, you may
call and set a time for the phone consult with an attorney but the following may serve
as a rough guideline when considering the costs of bankruptcy:
Chapter 7- (single or couple)-$1000-$3500, depending upon the complexity of your case,
plus the court filing fee of $335 and $50 for a detailed credit report from all three
major credit bureaus. Your petition is prepared and filed after the full amount is
paid. We allow you to make small monthly installments if your budget requires.
Chapter 13- (single or couple)-$3825 ( we represent you for the full 3-5 year term of
the plan), plus the court filing fee of $310 and $50 for a detailed credit report
from all three major credit bureaus. Oftentimes, we can file a typical Chapter 13 case
for a $750 down payment (that includes the filing fee and credit report), and the rest
of the fee is paid through your monthly payments to a court-appointed trustee via what
is called a "wage order." Our attorneys are prepared to discuss this with you at length.
We are proud of our ability to keep our fees very reasonable, and we strive to make
this process affordable for you by offering flexible terms. The firm accepts cash,
checks, money orders, debit cards, and offers a secure on-line payment website for
your convenience.
assist people in filing for bankruptcy. In fact, one of the most important services
provided by this office is representation in Bankruptcy Court. This page is dedicated to
answering some of the most common questions regarding Bankruptcy:
- What kinds of bankruptcies are there?
- Should I file Chapter 7 or 13?
- Do I get to keep any of my property?
- What about loans that I put up collateral for, like my house and car?
- What about Credit Cards?
- How long will I be in bankruptcy
- What can I expect?
- How long does a Bankruptcy stay on my record?
- If I am married, does my spouse have to file bankruptcy too?
- Can I go run up my credit cards and then go bankrupt?
- How much does bankruptcy cost?
1. What kinds of bankruptcies are there?
Generally speaking, for consumers there are two types. Chapter 7, which is often
referred to as liquidation, and Chapter 13, or reorganization, where a portion of your
debts are repaid.
2. Should I file Chapter 7 or 13?
At our firm, we will be able to help you with that question. Everyone's individual
circumstances vary, but generally speaking a person with money left over at the end of
the month after taking into account their monthly budget including all "necessary"
bills, would probably be a good Chapter 13 candidate. If you do not have any excess
income after paying your monthly minimum expense, then a Chapter 7 might be your
only option.
3. Do I get to keep any of my property?
You get to keep your exempt property. In Texas there are several advantageous
exemptions available to debtors. Our attorneys will carefully review your situation to
ensure that all available exemptions are used to your
best benefit.
4. What about loans that I put up collateral for, like my house and car?
"Collateral" is an example of what is referred to as Secured Debt. With Secured Debt,
you will have to Agree to continue paying on the loan, or else the lender will be able to
take the property back from you. It is common for a person in bankruptcy to keep
paying on their car and house and then keep these items (provided they can afford it).
5. What about credit cards?
This is a good example of what is known as Unsecured Debt. In Bankruptcy unsecured
debt is either discharged or repaid out of the nonexempt proceeds of the estate in
chapter 7, or partially repaid under the Chapter 13 payment plan. Most credit cards
are unsecured, meaning there is no property put up as collateral for the
debt. However, some credit cards, such as Sears and Montgomery Ward are often
secured (see no. 4). This means you may have to give the property back that you
purchased with the card if you want to discharge the debt.
6. How long will I be in Bankruptcy?
It will take approximately three months from the time the petition is filed until the
date of final discharge for a Chapter 7. Under the Chapter 13 framework, you are "in
bankruptcy" for the duration of the repayment plan, usually 36-60 months.
7. What can I expect?
Our attorneys will prepare a detailed petition listing all of your property, debts and
other financial information. After you approve the petition, it will be filed
electronically with the Court. A short period later there will be a meeting with the
bankruptcy trustee that you must attend. This is usually the only appearance required
and one of our attorneys will be right there with you. Unless there are problems or one
of your creditors objects, the discharge will be granted a few months later.
8. How long does a Bankruptcy stay on my record?
Generally, credit agencies can report bankruptcies for a period of ten years.
9. If I am married, does my spouse have to file bankruptcy too?
Technically no, a single or joint petition may be filed. However, Texas is a community
property state, so more often than not, the non-filing spouse may still be held liable for
some debts. You can also run into problems when assets are transferred from one
spouse to another. Our offices can provide valuable assistance to you regarding this
particular topic.
10. Can I go run up my credit cards and then go bankrupt?
No, the Trustee has the power to object to our being able to discharge debts where you
fraudulently bought items with the idea of going bankrupt. If it is bad enough, it can
be considered a crime. In fact, once you meet with our attorneys, you will be
instructed NOT to use credit 90 days prior to filing just to be on the safe side. This is
just an example of one of the ways we can help guide you through what otherwise could
be a very stressful experience.
11. How much does it cost?
The price of your bankruptcy is a combination of filing fees, expenses, and attorney
fees and will vary depending upon the complexity of your individual case. It is not
possible to give you an exact price over the Internet because you must actually talk
with one of our attorneys before we can fully assess your situation. However, you may
call and set a time for the phone consult with an attorney but the following may serve
as a rough guideline when considering the costs of bankruptcy:
Chapter 7- (single or couple)-$1000-$3500, depending upon the complexity of your case,
plus the court filing fee of $335 and $50 for a detailed credit report from all three
major credit bureaus. Your petition is prepared and filed after the full amount is
paid. We allow you to make small monthly installments if your budget requires.
Chapter 13- (single or couple)-$3825 ( we represent you for the full 3-5 year term of
the plan), plus the court filing fee of $310 and $50 for a detailed credit report
from all three major credit bureaus. Oftentimes, we can file a typical Chapter 13 case
for a $750 down payment (that includes the filing fee and credit report), and the rest
of the fee is paid through your monthly payments to a court-appointed trustee via what
is called a "wage order." Our attorneys are prepared to discuss this with you at length.
We are proud of our ability to keep our fees very reasonable, and we strive to make
this process affordable for you by offering flexible terms. The firm accepts cash,
checks, money orders, debit cards, and offers a secure on-line payment website for
your convenience.
Bankruptcy
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THE LAW OFFICES OF CLAYTON WRZESINSKI, P.C.
| Houston Locations: Principle Office: 10101 Southwest Freeway # 400 Houston, Texas 77074 19901 Southwest Freeway Sugar Land, Texas 77479 22503 Katy Freeway Katy, Texas 77450 Austin Locations: Arboretum Area 9600 Great Hills Trail #150W Austin Texas, 78759 1000 Heritage Center Circle Round Rock, Texas 78664 |
Houston (281) 499-4996
Austin (512) 650-3075