South Texas Bankruptcy Lawyer

Serving Corpus Christi, McAllen, Brownsville and Harlingen

Possible Assets You May Lose in Bankruptcy

The purpose of a bankruptcy filing is to get your debt under control, either through a Chapter 7 filing which will discharge most of your debt, or through a Chapter 13 filing which will help you re-structure your debt so that you can make affordable monthly payments to all your creditors in 3-5 years.  Along with this bankruptcy protection there may be some things you chance to lose.  With the advice of our proficient bankruptcy attorneys from the Malaise Law Firm in Corpus Christi, McAllen, Brownsville and Harligen, you can rest assured that your best interests will be forwarded when filing your bankruptcy petition.

When filing a Chapter 7 bankruptcy some of your assets may be liquidated by the Trustee of the Bankruptcy Court to pay off creditors.  From our experience, most people eligible to file for Chapter 7 are not greatly affected, as they have few assets over what is exempted that can be sold to pay creditors.  However, if you do have assets when filing Chapter 7, the following are the types you stand to lose:

• Your primary residence, if you have been unable to maintain your mortgage payments.  If you are current on your payments and can continue to make payments, you will likely be allowed to keep it.
• A second home or land
• Second cars
• Recreational vehicles
• Motorcycles
• Any inheritance received within 6 months of filing bankruptcy
• Cash on hand over a set amount that is exempt
• Checking or savings accounts  except amounts that are exempt

With a Chapter 13 filing, as you are restructuring your debt and repaying it within 3 to 5 years, will allow you to keep your assets.  You are still at risk of losing some assets if you fail to complete the repayment plan, as this knocks you out of the bankruptcy protection, allowing creditors to once again pursue you directly.

The affects of a Chapter 13 include having to use all of your disposable income after your main monthly expenses are paid to pay off your creditors.  You will also be involved in the bankruptcy procedure for the entire period of your Plan, between 3 to 5 years.  You will be required to report yearly to the Trustee of the Bankruptcy Court to ensure you are following the Plan.

Chapter 13, as it allows for restructuring of your debt, does not seize your assets as long as you complete your repayment plan.  However, if you fail to complete the repayment plan, you could lose some assets.  In general, these are the main points that would affect you when filing a Chapter 13:

How the Malaise Law Firm Can Help You

Our knowledgeable staff at the Malaise Law Firm is ready to answer any questions you may have on how you will be affected by a bankruptcy.  With offices throughout Texas, we are available to serve you throughout Corpus Christi, McAllen, Brownsville, and Harlingen.  Our dedicated and caring legal staff work hard to provide you with individual attention and close contact to keep you apprised of the status of your case from beginning to end.  We offer a free consultation to discuss your specific circumstances so contact us today.

What do you stand to lose by filing bankruptcy? Find out what by contacting the Malaise Law Firm , bankruptcy lawyers in South Texas.