Debt Relief Through Consumer Bankruptcy Can Ease Your Credit Card Debt and Student Loan Burdens

Every part of Mr. Black's Houston legal practice circles back to one primary goal: debt relief. Whether your troubles stem from foreclosure, student loans, credit cards or IRS-related issues, the Law Office of J. Thomas Black will help you get back on track.

Chapter 7 Bankruptcy

Filing for Chapter 7 bankruptcy can help people that are buried by debt get back on track. In order to file, you must meet certain requirements that Attorney J. Thomas Black can discuss with you, such as the "means test."

If you are eligible to file chapter 7 in Texas, most people lose no property, only their debts. But if you have "non-exempt" property such as lake lots, stock portfolios or rental property, you will need to surrender all non-exempt property to a bankruptcy trustee. And most types of debts are "discharged" or cancelled —such as credit cards, personal loans, and leases.

Chapter 11 Bankruptcy

Houston, Texas businesses that operate as corporations, partnerships or LLC's and that are in financial trouble and need to file bankruptcy really only have two options: to liquidate or go out of business in chapter 7 bankruptcy, or to attempt to reorganize and stay in business by filing chapter 11 bankruptcy.

People, whether operating a business as a sole proprietorship or not, can also file chapter 11, but it is not usual. Most individuals file chapter 7 or chapter 13, although if they have an very large amount of debt and want to reorganize their finances, chapter 11 may be their only choice.

In the case of a business failure, where the business is not profitable and when chapter 11 is not feasible, chapter 7 is the logical choice. In chapter 7 a petition is filed with the bankruptcy court and an "automatic stay" or court order stops creditor collection actions. A liquidation trustee is appointed to gather and reduce to cash all the business assets. The resulting money is distributed to creditors as far as the money will go, according to a priority hierarchy contained in the Bankruptcy Code. 

In chapter 7 cases concerning "entities" such as corporations and LLC's, there is no discharge of debts. The entity is eventually disssolved and is no more. This is unlike chapter 11 where if the chapter 11 plan is confirmed or approved by the court, it is a new contract, a new bargain with creditors, and it does receive a discharge of debts to the extent that the debts are not to be paid through the chapter 11 plan. This is also unlike chapter 7 cases involving individuals, that do receive a discharge of debts.

 

Chapter 13 Bankruptcy

A Chapter 13 bankruptcy plan can organize your debt into manageable regular payments. Because you need to commit to how much you will pay on a biweekly or monthly basis, Chapter 13 is a good option for people with a regular source of income.

Even if you have filed for Chapter 7, 11 or 12 bankruptcy, you are still eligible for Chapter 13. In fact, if you file for Chapter 7 and certain debts are not canceled, they can be rolled in to your Chapter 13 payment plan later. 

Debt Relief

Debt relief in Texas is possible with the assistance of an experienced lawyer. By following a three step process of challenging inaccurate information, negotiating debt and building good credit, Attorney J. Thomas Black will help settle your debt and get your life back on track.

IRS Problems

When Benjamin Franklin said that nothing is certain except death and taxes, he was not kidding. If you do not pay your taxes, the IRS has the power to seize nearly everything you own to pay that debt. When your IRS debts become unmanageable, it's time to contact an attorney that understands IRS problems like J. Thomas Black. There are options for payment plans, settling by paying a smaller lump sum or for filing bankruptcy.

Rebuilding Your Credit

After a bankruptcy or after your debts are resolved, people want to restore their credit so that they can obtain the things that they want, and at a reasonable credit cost. Because of bad credit, many people cannot buy a home, or can only buy a car or truck by paying exorbitant interest rates of 18% or even more. This costs you 1000's of extra dollars over the term of your loan!

Having excellent credit can save you a large amount of money, enough to live a better lifestyle, or enough to start seriously saving for retirement or your other goals.

After we do a "credit clean-up" for you, we provide you with a 14 step educational program through www.720creditscore.com, which guarantees that within 12-24 months of your discharge in bankruptcy, you can have a 720 or higher credit score. And we currently provide this program to you at NO CHARGE if you hire us for your bankruptcy case.

Student Loan Issues

Student loans are one of the most common and most crippling forms of debt in the nation. As the cost of tuition increases each year, more and more students are graduating with tens of thousands of dollars in debt that they don't know how to repay.

If your student loan payments have gotten out of hand, consult a Houston student loan debt lawyer to learn about your options to decrease or in some cases, completely eliminate your repayment obligation.