Houston Bankruptcy Attorney, Laws and Lawyers
What is Bankruptcy?
When a legal entity, be it a solo proprietor or a company, cannot afford to service their debts as they come due, a petition is filed by the debtor. This petition is called Bankruptcy.
Bankruptcy in the US is a means of legally declaring that a person or business cannot afford to repay their debts. When a person or firm is declared bankrupt in one of several chapters of the federal bankruptcy code their assets if there are any are taken into consideration and valued and used to pay off as much of the debt as possible.
Once the legal entity has successfully filed for Bankruptcy it may have a chance to start fresh because unpaid debts can be forgiven while creditors have a chance to obtain some measure of repayment based on what assets are available.
Texas Bankruptcy Law
The Federal government in the US holds the exclusive right to make bankruptcy laws. Since Bankruptcy law is federal law, bankruptcy laws throughout the United States may differ from one another. Here are some of the features that make the state off Texas stand out among other states in regard to bankruptcy laws.
- Among all the other states, Texas gives a generous homestead exemption.
- In Texas, there is a choice of either using the federal exemption statutes or the usual Texas exemptions.
- Median income ranges from $38,940 for a single person to $66,381 for a family of four living in Texas. This means that anyone who has an income above the median can qualify for a Chapter 7 or for a Chapter 13 in otherwise.
The Bankruptcy Code
There is a bankruptcy code which has been created by the government and some procedural rules of bankruptcy. It has also developed a network of courts to handle American cases of bankruptcy the length and breadth of the country.
Definitions of bankruptcy cases are found in the Bankruptcy Code. There are three main types of bankruptcy cases individuals use are Chapter 7, Chapter 13 and Chapter 11.
· Chapter 7
Chapter 7 bankruptcy, commonly known as straight bankruptcy, is the most common type of case applied when someone simply does not have anything to use to repay their debts and therefore has to request that they be dismissed.
It means that any assets available, which are known as property which is not exempt, can be used by the trustees, in the sense of being sold by them, to settle outstanding amounts with creditors while at the same time protecting any exempt properties from being sold.
· Chapter 13
This applies to an individual or a company that still has ample assets to pay the creditors. Chapter 13 allows the petitioner to organize his debts by consolidating them in a sense and paying off as much and as many creditors as possible with all outstanding debts intending to be paid on expiry of the repayment plan.
A large majority of Chapter 13 bankruptcy is to do with the repayment plan and this can be greatly affected by local state laws regarding exempted properties.
Both the debtor and the creditor can benefit from Chapter 13. The debtor gets relief from debts while the creditor gets some payment.
- Chapter 11
Chapter 11 is far more complex and expensive because it is typically used for business bankruptcies and restructuring. During a Chapter 11 a company can continue to trade and do business but will be overseen by the bankruptcy court and monitored. It gives the company valuable breathing space and time to take stock and come up with a viable and workable alternative plan taking into account cash flow and assets.
A list of assets and liabilities and a detailed list of his financial affairs are the required for the debtor applying for Chapter 11.
Choosing the right lawyer
Bankruptcy attorneys are integral people who can help in applying for bankruptcy. A thorough knowledge in bankruptcy laws is essential to ensure the life of the company or even the property rights. That makes choosing the right attorney to represent a company or an individual during a case is the most important step in the Bankruptcy process.
A knowledgeable lawyer will be able to act on behalf of the legal entity and work to an agreement to satisfy both the bankruptcy court and subsequently any creditors. Any decisions made during the state of bankruptcy can have far reaching consequences for years to come.
It is important to know the time of availability of the lawyer to work on the case. Here’s why:
The Bankruptcy Code requires a list of all the petitioner’s properties, debts, incomes and expenses. A proper accounting of finances and proper legal exemptions from the attorney can lessen the chance of having the Bankruptcy Trustee to scrutinize the case.
Also, a certification from a renowned board is a good indication of an experienced and a helpful bankruptcy attorney. One of these boards is the Texas Board of Legal Specialization.
Consumer Bankruptcy is one of the legal specializations that can be certified by the Texas Board of Legal Specialization. A substantial commitment, including a lengthy application process and a day-long examination are required for a lawyer to be certified by the board. Out of the 77,000 lawyers and attorneys allowed to practice at the moment in Texas, a minority of 161 are “certified” by the Texas Board of Legal Specialization in Consumer Bankruptcy Law.
The initial certification from this board can only remain valid for five years. This means that the lawyer can voluntarily renew his certification given he has continued in the study of his specialization.
Houston Bankruptcy Attorneys
Houston, Texas is blessed with a wide pool of competent bankruptcy attorney. Here are two of them:
- Atty. Vicky Fealy
Atty. Fealy has eighteen years of experience and is board certified in Consumer Bankruptcy Law by the Texas Board of Legal Specialization. She is the head of the Fealy Law Firm which boasts of its team’s recognition of the difference of each client, and the client’s cases and needs.
She provides free and confidential consultation in which she can examine the client’s specific situation in depth. During the consultation she provides the client with a full evaluation of his financial situation and an explanation of the options that are available.
The official website of the Fealy Law Firm is www.houston-bankruptcy-attorney.com.
- Atty. William D. Weber
Atty. Weber is a licensed Texas attorney and a recognized as an expert in bankruptcy law. He is a graduate of the University of Houston Law Center and was in the top 6% of his law school class. During almost 27 years, he has gained a large and varied range of expertise in small business and consumer bankruptcy cases, bankruptcy litigation and matters pertaining to debt collection.
More information about Atty. Weber and his law firm is found in weberlaw.com.