If you are struggling to pay your bills or are experiencing some of the financial warning signs, you should consider bankruptcy as a possible option to your financial situation. If you’ve been harassed by creditors calling you at home or work, or you’ve been sued by a creditor or credit card company, you should know about your options for how to deal with the situation.
Bankruptcy is a legal process by which you can deal with your debts when you can no longer pay them. By filing bankruptcy, most people find that they are able to get most of their debts “discharged.” Discharge is a fancy word meaning those debts are wiped out or legally forgiven while you get to keep most, if not all, of your property (chapter 7) and/or you get extra time to pay certain bills if you have a regular source of income (chapter 13).
The person or entity who files the case is called the “debtor.” If you file an individual case, you will be the only debtor. If you and your spouse file together, your case is filed as one case (with one filing fee), but your case is called a “joint case,” with husband and wife being the “co-debtors.”
The purpose of filing a case is to get a discharge of most, if not all, of your debts, so that you can wipe out those debts and you never have to repay them! This means you are relieved of the legal obligation to repay those debts.
A lot of clients tell us that they hate to include the debts owed to their family doctor or dentist and that they don’t want to include those debts in their bankruptcy (which are unsecured, dischargeable debts in a chapter 7 case) because they don’t feel right not paying their health care providers. We advise our chapter 7 clients that, while bankruptcy relieves them of the legal obligation to pay that debt, if after the bankruptcy is over, they would like to re-pay the debt (and have the means to do so), they may do so.
Once your bankruptcy case is filed with the Court, creditors are prohibited by law from contacting you to collect debts or to sue you during the bankruptcy. If you already have a pending collection lawsuit where a creditor or collection agency is suing you before you file a bankruptcy, that lawsuit is stopped once you file bankruptcy.
With a few exceptions, creditors have no right to collect from debtor’s future income or assets.
Lucy Hebron represents clients in East Texas counties: Camp, Cass, Harrison, Marion, Upshur, Anderson, Cherokee, Gregg, Henderson, Panola, Rains, Rusk, Smith, Van Zandt and Wood and the following cities: Pittsburg, Linden, Marshall, Daingerfield, Gilmer, Palestine, Jacksonville, Longivew, Arp, Athens, Brownsboro, Carthage, Overton, Emory, Henderson, Kilgore, Tyler, Bullard, Elkhart, Frankston, Rusk, Mt. Enterprise, Gun Barrel City, Canton, Quitman, Hideaway Lake, Lindale, Whitehouse, Troup, Winona, Van, Ben Wheeler, Grand Saline, Fruitvale, Edgewood, Wills Point, Quitman, Mineola, Hawkins, Yantis, Alba, Tatum, Holly Lake Ranch and Winnsboro.
We are a debt-relief agency. We help people file for bankruptcy under the Bankruptcy Code.
The information on this site is for general information only. Nothing on this site should be taken as legal advice for your individual case. You should consult an attorney for advice on your own situation.