The Basics of Texas
Bankruptcy Law
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Texas bankruptcy law protects consumers from financial ruin and the potential to be abused by creditors. By allowing consumers to have their qualifying debts eliminated, bankruptcy is a federal law which offers all Americans a second chance at controlling their debt. Attorney John Hixson recognizes that financial hardships can happen to anyone and he uses bankruptcy laws to help you when your only way out of financial hardship is the cancellation of debt.
Bankruptcy can:
•Stop collection calls
•Stop lawsuits
•Avoid/Stop foreclosure
•Stop repossession
•Stop IRS wage garnishments
•Eliminate credit card debts
•Restructure debts through a repayment plan
•Stop Tax liens and garnishment
•Eliminate or reduce some tax debt
•Eliminate medical bills
When you retain Bankruptcy Lawyer John Hixson, you will speak with, meet with and attend hearings with John himself; not with a legal assistant, paralegal or appearance attorney. John personally provides you with information about the advantages and disadvantages of filing bankruptcy in order to help you make an informed decision.
Catastrophic medical bills, a devastating judgment, or an unavoidable business failure may require bankruptcy relief. If a financial disaster has led to a foreclosure, collection lawsuit, or repossession, he will advise you in choosing whether to reorganize your affairs (Chapter 13) or discharge your debts (Chapter 7).
There is a LOT of misinformation floating around regarding the new bankruptcy laws. Don’t believe the negative rumors. Relief is still available under Chapter 7 and Chapter 13 for individuals and businesses. There are more eligibility requirements before you file bankruptcy and more documentation requirements after you file (declare) bankruptcy, but bankruptcy is still available.
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Chapter 7
Chapter 7 cases are commonly referred to as straight bankruptcy or liquidation cases, and may be filed by an individual, corporation, or a partnership. Bankruptcy law (Federal or Texas law) allows you to keep certain exempt property, which will not be sold or distributed to creditors. Non-exempt property is available to your creditors. In exchange for this, the debtor gets a discharge, which means that the debtor does not have to pay certain types of debts. Chapter 7 takes about four months to complete.
Chapter 13
Chapter 13 permits individuals to keep their property by repaying creditors out of their future income. Chapter 13 is a reorganization chapter under court supervision. Chapter 13 is appropriate for you if you want to avoid or stop repossession of your car or foreclosure of your house because of missed monthly payments or non-payment of taxes. Each chapter 13 debtor proposes an individually tailored repayment plan that must be approved by the court. After completion of payments under the plan, chapter 13 debtors receive a discharge of most debts. Chapter 13 takes three to five years to complete depending on the extent of your debts and income.
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Basic Requirements:
1. List ALL your assets and ALL your creditors on the Bankruptcy worksheet provided by Mr. Hixson. Complete ALL sections/pages of these worksheets. Complete ALL other required forms on fully and on time.
2. Carefully review and sign the papers prepared for you by Mr. Hixson. These papers are signed under oath and the penalty for perjury applies. Tell the truth—you have nothing to hide.
3. Complete TWO counseling sessions:
A) A credit counseling course prior to filing your case.
B) A personal financial management course after you to file your case.
4. Attend your meeting of Creditors (Section 341 meeting). Mr. Hixson will prepare you for the meeting and attend with you. In most cases none of your creditors will attend.
5. Cooperate with the Trustee assigned to your case. Provide additional information as requested.
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A more detailed discussion of the process is provided
in our Bankruptcy Roadmaps: Chapter 7 Chapter 13
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. Licensed by the Texas Supreme Court since 1982. Admitted to practice in US District Court since 1983.
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