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Texas Bankruptcy Lawyers - Common Questions& Answers
The most frequently asked questions lawyers receive pertain to discharge,
because ultimately, discharge or final release from debts is the primary goal of everyone who files. Discharges are available in both Chapter 7 & 13 cases
under different terms and case durations. The phrase "straight bankruptcy" usually
indicates Chapter 7 cases, but is an older term which is seldom used. In a
Chapter 7 case, all debts are wiped out as if paid in full.
No additional payments to creditors are required after filing, and debts
become null and void after the court grants discharge.
Chapter 13 cases allow either a full or partial payment plan to creditors.
In full Chapter 13 plans, payment amounts are restructured to permit
extended payment schedules at lower interest rates. In partial Chapter
13 cases, only a portion of amounts owed are actually repaid, according to the
financial ability of the debtors. All remaining balances at the end of
plan are discharged similarly as in Ch. 7 proceedings. Litigation of discharge issues
is common (contested hearings and adversary proceedings), especially in
larger cases or when creditors are inexperienced.
Texas Bankruptcy Lawyers - FAQ
Special financial issues are subject to extensive regulation. Liability for amounts owed to government departments or created without actual consent of others receive a greater level of scrutiny by the Courts, Trustees and lawyers representing creditors who may seek to prevent discharge. For additional information, see:
Most lawyers and law firms that specialize in consumer cases provide free initial consultations
to anyone with legitimate questions. These meetings serve
several purposes and create an extraordinary opportunity for debtors
seeking answers. Potential clients normally may ask an unlimited number
of personal legal questions, negotiate attorney fees and limit costs, as
well as evaluate the suitability of a particular lawyer. Be aware, during these
meetings, lawyers also evaluate potential clients. Lawyers may be liable for a debtor's misrepresentation
of facts and intent, and also consider the time and difficulty required to
represent each person. Similarly, lawyers avoid potential clients who
may potentially create liability for misrepresentation, attempt bankruptcy fraud, or violate
any number of a wide assortment of legal disclosure requirements.
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