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Bankruptcy FAQ

1. What kind of Bankruptcy protection is available to individuals?

There are generally four primary types of bankruptcy filings, but you may not be qualified to file each type. Generally, Chapter 7 Bankruptcies are liquidations but individuals are usually allowed to keep all of their assets; Chapter 13 Bankruptcies are filed to help you reorganize you debts, and make payments to a trustee who will then pay your creditors. Contact Mike Pledger for help in deciding what type of bankruptcy filling is best for you.

2. Will I qualify for Bankruptcy protection?

You may qualify to file either a Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy. Each type of bankruptcy has unique advantages and disadvantages. In particular, Chapter 13 requires you to have a source of income; Chapter 7 does not have such a requirement. There is also no minimum debt requirement. Contact Mike Pledger about which chapter best serves your needs.

3. If I file Bankruptcy, can I keep my house or my car?

Usually the answer is yes, but the law is complex and each person’s circumstances require careful examination. Whether you will be able to keep your property is a question that can only be answered by experienced counsel reviewing the facts of your particular situation, including the amount of equity in your property, your payment record, and other important factors.

4. Can a bankruptcy filing stop creditors from suing me or calling on the phone?

Once a bankruptcy is filed, creditors are stopped from pursuing collection activities, including telephone calls and filing or continuing law suits to collect their debts. Garnishments and foreclosures are also prohibited once a bankruptcy under any chapter is filed.

5. Can I file bankruptcy with my spouse?

Since Texas is a community property state, most individuals file jointly with their spouse. There may by advantages or disadvantages to a joint filing with your husband or wife. Mike Pledger will help you decide based on the type of debts and the assets you need to protect.

6. How do different types of debts affect a bankruptcy filing?

The types and amounts of your debt may affect a bankruptcy filing in different ways. I will analyze your list of debts, and advise you as to what type of bankruptcy filing is best for you. These debts may be classified as individual or community, and may be dischargeable (which means that they can be resolved by the Bankruptcy filing, or remain non-dischargeable after the bankruptcy is over). This determination is very important. You should consult with a Board Certified Bankruptcy Attorney to determine the classification and dischargeability of your debts.

7. Will I still owe taxes after filing Bankruptcy?

This is one of the least known advantages of filing for bankruptcy protection. Many people do not know that the bankruptcy laws do provide for discharge of many federal and state tax obligations. This is a complex issue which depends on a number of factors including the type of tax owed, the age of the tax obligations, and whether and when you filed a tax return. If this is one of your concerns, you need to consult a Board Certified Bankruptcy Lawyer to determine whether your tax obligations can be discharged in bankruptcy.

8. How can I get more information?

If you think that you may need help because your debts are more than you can handle, give our office a call or e-mail us. Mike Pledger will be glad to speak with you about your individual situation, your company, or schedule an appointment to assist you. “Contact Lawyer

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