Frequently Asked Bankruptcy Questions
Going through bankruptcy can be an emotional and confusing time. I am Sheila Deason, principal bankruptcy attorney of Sheila Deason Law Firm in Texas, and I want to share answers to the more common questions to help you make decisions.
What Is The Difference Between Chapter 7 And Chapter 13 Bankruptcy?
Chapter 7 bankruptcy allows you to erase most of your debts, although you may have to sell some of your assets. This filing is most often a good choice for people who do not have a steady income but need to get out of debt right away. In a Chapter 7 filing, I will work to ensure that all of your essential possessions are retained. Chapter 13 bankruptcy reorganizes your debt and sets payment schedules for paying the debt off. Chapter 13 is often a better choice for someone with a stable income who is behind on payments and feels in over their head.
When Should I Consider Applying For Bankruptcy?
Here in Texas, floods can come in and sweep away everything you have worked so hard to have in life. Unfortunately, flood damage is typically not covered in home insurance policies. In addition to sudden disasters, job loss and divorces are also common causes for filing for bankruptcy. Other reasons people may file for bankruptcy is when an unexpected medical event happens. This can deplete savings while you are unable to create income.
Can I Discharge My Medical Debts Through Bankruptcy?
If you are struggling with massive medical costs, filing for bankruptcy can be a beneficial option. Chapter 13 allows you to organize payment plans for your debt. However, Chapter 7 bankruptcy allows you to be able to completely discharge your debt. Deciding which path is better requires a clear assessment of your assets, income and goals.
How Does Filing For Bankruptcy Impact Debt Collectors?
Keeping debt collectors at bay is one of the immediate benefits of bankruptcy. This is done by two different methods: an automatic stay and a discharge. An automatic stay comes into effect the moment you file for bankruptcy. From there, creditors cannot legally make any effort to collect previous debts or even contact you about it.
After your bankruptcy application has ended and you have discharged your debts, you are free from debtors trying to collect what you once owed them. However, debtors have been known to continue to harass people about their old debt. It is illegal for debtors to continue to call you after your bankruptcy. As a bankruptcy lawyer solely focused on bankruptcy law, I have the extensive knowledge and can help you seek compensation for damages from these debtors if the harassment continues.
Let My Experience Work For You – Contact Me Today
Get the help you are looking for to begin a bankruptcy application. I can help you decide if filing is the right path for you, advise you of your options and ensure that creditors stop their harassment. I have more than 20 years of experience in serving clients. Contact my Houston office by calling 713-426-1234 or send me an email set up your initial consultation today.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.