Types of Bankruptcy

Loading the player...

Hello my name is Reese Baker and I wanted to talk to you for a few minutes about the bankruptcy process. Bankruptcy can involve several different types of chapters. There are chapters 7, 11, and 13. There are also other chapters that are used for other types of operations. A chapter 7 is used principally if you want to simply eliminate your debts and get a discharge of debts, but you have to qualify as an individual to file a Chapter 7. Which means you may make too much money or you may have too many assets to file a Chapter 7 in which case you might have to file a Chapter 13.
A Chapter 11 is used by big companies such as Chrysler and GM and other companies that owe a large amount of debt Although individuals can also file a chapter 11 if they owe are large amount of debts.

The bankruptcy process in Chapter 7 typically lasts between 4 and 6 months from the time you file a case. You make no payments to anyone and you get a discharge after you case has been completed. A chapter 13 allows you to restructure debts. If you’re behind on your house or you’re car, you owe money to the Internal Revenue Service or for child support it allows you to repay those amounts back over a 3 to 5 year period. You also get a discharge of debts in a Chapter 13 the same way you do in a Chapter 7 for credit cards and other unsecured debts. The bankruptcy process requires you to make a full disclosure of all your assets and all your liabilities. It also requires you to report to the court periodically during the bankruptcy process, if you’re in a chapter 13, what your income is.

Bankruptcy,, however, is not an end it is a beginning, it is a new beginning,. The only difference in your life when you’re in a Houston bankruptcy case is that you’re not allowed to get new debt. Life goes on as normal in a chapter 13 bankruptcy case even over several years. It is not an end it is a new beginning. We urge you to call us today to look at the various options in the bankruptcy process and see if any of these work for you or make sense because it can provide financial freedom and financial stability to you. Thank you very much and please call us.